The Social Security Administration (SSA) recently announced a 2.5% cost-of-living adjustment (COLA) for 2025. This marks the smallest increase since 2020, following the much larger 8.7% increase in 2024. For retirees, this means an additional $49 per month, raising the average monthly benefit from $1,927 to $1,976. Married couples will see an average increase of $75, with their monthly benefit rising to $3,089.
For retirees living in Maine, the news is even better. Maine does not impose a state income tax on Social Security benefits, allowing retirees to keep their entire monthly benefit without deductions. This tax policy provides significant financial relief, making the state an attractive option for retirees looking to maximize their Social Security income.
With the upcoming COLA increase and the tax advantages in Maine, retirees can expect a modest boost in financial security in 2025.