Social Security Reveals Major Boost in Retiree Paychecks – These States See the Largest Increases

According to the Social Security Administration, certain states will see more rises in 2025 than others. The SSA changes Social Security benefits annually such that the cost of living adjustment ( COLA) would help beneficiaries. Since the COLA considers inflation on many different products, it helps seniors preserve their spending power even when the cost of goods and services increases. Earlier this week, the Senior Citizens League projected that the cost of living change for next year might be roughly 2.6 percent. This would be the last rise of the beneficiaries since 2021. Not every state, meanwhile, sees the same monthly benefit increases.

Social Security notes some recipients will get bigger payouts in some states

The way Social Security is computed means that not every state will experience monthly benefit increases at the same rate; certain pensioners in some states will get more than others. Your exact benefit would vary depending on your lifetime income record and the Social Security application date. Nonetheless, it appears that not all recipients would receive the same average payouts as, in some states, the payment value will be larger.

Social Security’s computation method causes some pensioners in particular states to receive more than others. Your precise Social Security payment may vary based on your lifetime earnings and starting Social Security claiming date. A recent Motley Fool study indicates that these traits might cause some states to have higher Social Security benefits than others. This is true because some states have noticeably higher median salaries than others based on the COLA, which increases Social Security payments. The states with the greatest median monthly Social Security benefits, according to Motley Fool data:

New Jersey: $2,100
Connecticut: $2,084
Delaware: $2,064
New Hampshire: $2,039
Maryland: $2,008
Michigan: $2,005
Washington: $1,992
Minnesota: $1,982
Indiana: $1,952
Massachusetts: $1,946

Why will certain recipients of Social Security cheques in these states get bigger ones?

Professor of financial literacy Alex Beene of the University of Tennessee at Martin notes that some states get bigger Social Security increases than the national average because of higher median salaries than the average. The benefits the recipients get mirror this; since their monthly payments are higher, they are probably going to get the biggest COLA increases. Should present COLA projections also be accurate, the median retiree in New Jersey will get an extra $54.60 in Social Security payments. Massachusetts’s increase would be $50.60. With New Jersey, New Hampshire, Maryland, Washington, and Massachusetts among the top 10, the above states generally had higher salaries.

To understand why these locations will benefit most from the larger cost-of-living adjustment increases, though, the real story transcends income. Some retirees with more spare cash prefer to stay in their retirement community as well. For instance, the Motley Fool points out that although Washington, D.C., and California have some of the highest average Social Security payouts, pensioners are relocating elsewhere, therefore lowering their salaries. Retirees who live outside of the top 10 states could still expect a notable boost in their benefits since the cost-of-living adjustment is applied to their monthly checks independent of their residence.