NJ's 1.7 million Social Security recipients will see a 2.5% increase in benefits in 2025

The nearly 1.7 million New Jerseyans who receive Social Security benefits can expect a 2.5% cost-of-living adjustment increase in their benefits starting next year as inflation cools. 

It is the smallest benefit increase since 2021, CNBC reported. On average, a person getting $1,920 in monthly benefits this year will see a $48 increase, said Mary Johnson, an independent analyst of the nation’s Social Security and Medicare programs. 

For 2024, beneficiaries saw a 3.2% increase in their monthly benefits. They got an 8.7% rise in 2023 and a 5.9% rise in 2022. 

The federal Bureau of Labor Statistics revealed Thursday that price increases between September 2023 and 2024 — also known as the consumer price index — slowed to a three-year low of 2.4%. 

Slowing inflation does not necessarily mean prices have gone back down, but rather that the rate of price increases is slowing. 

Though the increase in Social Security payments will be smaller next year, the increase “means older Americans will receive needed relief to help better afford essential items from groceries to gas,” said Jo Ann Jenkins, CEO of AARP, an advocacy group for retired senior citizens. 

“Inflation took a financial toll this past year, particularly on retirees, who often rely on Social Security as a key source of income,” Jenkins said. 

The increase does not account for potential increases in the cost of Medicare Part B, which are automatically deducted from Social Security benefits.

Premiums for Medicare Part B rose by $9.80 a month in 2024 compared with 2023. A higher Medicare premium could eat into any Social Security increases.

Social Security benefits in New Jersey: a breakdown

Nearly 1.7 million New Jersey residents are beneficiaries of Social Security income, according to the latest data released in May by the Social Security Administration.

Here is a breakdown of who those 1.7 million beneficiaries are:

• Retired workers: 1,316,238.
• Disabled workers: 162,912.
• Widows, widowers and parents: 86,530.
• Spouses: 46,089.
• Children: 86,735.

Among those, about 1.4 million are seniors over the age of 65.

Daniel Munoz covers business, consumer affairs, labor and the economy for NorthJersey.com and The Record. 

Email: munozd@northjersey.com; Twitter:@danielmunoz100 and Facebook