Retirees in 10 states across America will get smaller Social Security raises in 2025 — do you live in one of them? If so, do this now

A Social Security state of mind

Retirees in these nine states and the District will get smaller raises in 2025 when the COLA is applied:

• Mississippi
• Louisiana
• New Mexico
• Arkansas
• Alaska
• Maine
• Montana
• Kentucky
• South Dakota
• D.C.

The reason for this is that retirees in these states receive the smallest median monthly Social Security check. Additionally, they have lower Social Security checks than others because median salaries are lower in many parts of the country. D.C. is an exception; the average may be lower because some federal workers have their Social Security benefits offset due to government pensions.

Simply put, COLAs are equal to the percentage of checks that you receive. If your check is smaller, your raise won't be as large as the raises going to seniors in states with higher benefits.

For example, in 2025 all retirees will get a 2.5% COLA. Considering this, retirees in Mississippi who receive a median monthly benefit of $1,673 will see a raise of $41.83, while retirees in New Jersey — who receive a median benefit of $2,015.90 — will see their checks go up $50.40.

Discover how a simple decision today could lead to an extra $1.3 million in retirement

Learn how you can set yourself up for a more prosperous future by exploring why so many people who work with financial advisors retire with more wealth.

Discover the full story and see how you could be on the path to an extra $1.3 million in retirement.

Read More

What to do if your Social Security check is disappointing

Whether you live in Mississippi or New Jersey, your raise is going to be based on the specific amount you are currently collecting. Come 2025, your benefit will rise by 2.5% no matter how much you're receiving.

Since many seniors are already struggling financially; this COLA could be seen as a disappointment. Additionally, a smaller raise could lead to financial hardship, especially given the inflation rates over the last two years. In 2023, retirees received a 3.2% benefits bump last year and an 8.7% raise the year before that.

For retirees worried about a smaller check, there are a few things you can do:

• Consider increasing your income. A side hustle of taking up a few hours per month may help you bring in extra income without interfering too much with retirement.
• Consider refinancing. If you borrowed money in the past few years, it may be a good time to refinance as the Federal Reserve has begun lowering interest rates, and rates on consumer loans are starting to come down as a result.
• Reduce your energy spending. Electricity prices have soared in recent years, so consider taking steps to reduce the amount you're spending such as installing a programmable thermostat or sealing up cracks in your home.
• Track spending and adjust your budget. Track your spending over 30 days to see where you may be overspending and find ways to reduce your outflow.

By taking these steps, you can hopefully stay on solid financial ground — even if you get a smaller Social Security raise in 2025.