We're nearly half way into January and another set of Social Security checks will soon be headed out to beneficiaries. The 2025 COLA increase is officially in place and recipients should see a 2.5% increase to their monthly payments.

The second round of January’s Social Security payments, worth up to $5,108 for the highest-income earners who retire at age 70, will go out to the second group of retirees on Wednesday, Jan. 15. Here is all you need to know about this month’s Social Security payments, which go out in three rounds.

An estimated 72.5 million Social Security recipients will benefit from a 2.5 percent increase in their payments this year thanks to the annual cost-of-living adjustment (COLA). Inflation, which has been above Federal Reserve targets for several years now,

The age you file for Social Security is perhaps the most important decision affecting your benefit amount. You can begin taking benefits as early as 62, but waiting up to age 70 will earn you larger payments each month.

As 2025 unfolds, understanding the latest Social Security updates is crucial for everyone, not just retirees. From increased benefits to new earning limits, these changes could significantly impact your financial planning.