Social Security checks are very important for millions of Americans. These payments are what keep your finances stable, whether you’re retired or a relative. It’s only normal to wonder how much your Social Security check will go up.
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How the Cost of Living Adjustment (COLA) Works?
The Cost of Living Adjustment (COLA) is the amount that Social Security benefits go up every year to keep up with inflation. It’s the same as getting a pay raise because the cost of living is going up. The Bureau of Labor Statistics in the Department of Labor calculates the change by examining the average change in the prices of consumer goods and services. This means that COLA impacts not only Social Security but also Medicare, Food Stamps, and Social Security Disability Insurance.
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What to Expect in 2025?
The Senior Citizens League (TSCL) projects the COLA will go up by 2.63 percent in 2025, based on the rate of inflation this year. This increase is necessary for Social Security checks, but it’s not as much as the 3.2% increase that was passed for 2024. Seniors are paying close attention, though, because the yearly COLA change is meant to help them keep up with rising costs.
What is the COLA Problem?
The COLA rise has been as high as 8.7% per year in the past. Some people, though, say it’s not enough to keep up with inflation. The Senior Citizens League did a study and found that 69% of people who took part said their living costs had gone up faster than the COLA over the past year. Rent and food prices are rising the most, making it hard for retirees to pay their bills.
Also Read : The New Retirement Age will affect Social Security benefits too
The Wait for January 2025
People who get Social Security will have to wait until January 2025 to see this difference in their checks. The official price hike will be made public in October, so stay tuned!
How much payments would rise with 2.63% COLA?
The 2.63% raise will not happen until the official COLA announcement in October, even though it is still just a guess. As of January 2025, the following numbers will be given to retired workers, survivors, disabled people, and people who get Supplemental Security Income (SSI) if this percentage is valid:
| Retirement benefits | Social Security checks | Including COLA 2025 (2,63%) |
| On average | $1,900 | $1,950 |
| Age 62 | $2,710 | $2,781 |
| Age 67 | $3,822 | $3,923 |
| Age 70 | $4,873 | $5,001 |
| Survivor benefits | Social Security checks | Including COLA 2025 (2,63%) |
| On average | $1,505 | $1,545 |
| Individual | $1,773 | $1,820 |
| 2 Children | $3,653 | $3,749 |
| Disability benefits | Social Security checks | Including COLA 2025 (2,63%) |
| On average | $1,537 | $1,577 |
| Blind recipients | $2,590 | $2,658 |
| Maximum payment | $3,822 | $3,923 |
People who get SSI benefits should know that they will be the only ones getting this raise in their Social Security checks in December 2024, since January 1st is a holiday. Because of this, the Social Security Administration will change this payment to the work day before, which is Tuesday, December 31st.
| SSI benefits | Social Security checks | Including COLA 2025 (2,63%) |
| On average | $698 | $716 |
| Individuals | $943 | $968 |
| Couples | $1,415 | $1,452 |
| Essential person | $472 | $484 |
Conclusion
For Social Security recipients to keep up with inflation, the COLA increase is a must. Even though the expected 2.63 percent rise in 2025 is a good sign, it’s important to listen to the worries of retirees who think it’s not enough. One thing is certain about the future: the COLA will continue to be an important issue for the many Americans who depend on Social Security checks.
FAQs
What is the Cost of Living Adjustment (COLA)?
The Cost of Living Adjustment (COLA) is an annual increase in Social Security benefits to keep pace with inflation, ensuring that beneficiaries can maintain their standard of living.
How is the COLA calculated?
COLA is calculated by the Department of Labor’s Bureau of Labor Statistics, based on the average change in consumer goods and services prices over time.
When will the COLA increase be announced for 2025?
COLA increase for 2025 will be announced in October 2024, with the increase taking effect in January 2025.
How much is the projected COLA increase for 2025?
According to the Senior Citizens League, the projected COLA increase for 2025 is 2.63%, based on current inflation rates.
Why is the COLA increase important for Social Security beneficiaries?
COLA increase is crucial for Social Security beneficiaries, as it helps them keep up with rising expenses, such as housing, food, and healthcare costs, ensuring they can maintain their financial stability.
