BIG ANNOUNCEMENT: Social Security Cola Increase 2025 (What We Know)

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Social Security benefits are set to increase in 2025, with updated figures on the exact amount scheduled for release this fall. Here’s what you need to know about the upcoming adjustment.

Projected Increase for 2025

The official numbers for the 2025 Social Security cost-of-living adjustment (COLA) will be announced in October. However, preliminary estimates suggest that beneficiaries may see an increase between 2.7% and 3.2%. For context, the 3.2% COLA adjustment for 2024 raised the average Social Security check by $59 per month.

The Senior Citizens League, a prominent advocacy group for older Americans, is currently forecasting a 2.6% increase for 2025. While this figure is subject to change based on economic conditions and final calculations, it provides a general idea of what beneficiaries might expect.

Understanding COLA: How It’s Calculated

The cost-of-living adjustment (COLA) is designed to help Social Security beneficiaries keep up with inflation. It is determined annually based on the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of the previous year (July through September). The Social Security Administration (SSA) uses this data to adjust benefit amounts accordingly.

The COLA calculation takes into account the rise in living costs to ensure that Social Security benefits retain their purchasing power over time. The adjustment aims to reflect changes in the cost of goods and services that beneficiaries typically purchase.

Also Read – Social Security Payments of Up to $4,873 Go Out This Week— Here is Complete Information

Eligibility for the COLA Increase

The COLA increase applies to various groups receiving benefits through the Social Security Administration. Eligible recipients include:

  • Retirement Benefits: Individuals who have reached retirement age and are receiving monthly benefits.
  • Survivor Benefits: Beneficiaries who receive payments due to the death of a spouse or family member.
  • Supplemental Security Income (SSI): Individuals who receive financial assistance due to limited income and resources.
  • Social Security Disability Insurance (SSDI): Disabled individuals who qualify for benefits based on their work history and contributions.

Each of these groups will see their benefits adjusted according to the percentage increase determined by the COLA calculation. This adjustment is aimed at helping beneficiaries manage the increased cost of living.

Conclusion

While the exact increase for 2025 will be confirmed later this year, current projections suggest that Social Security beneficiaries can expect a modest increase in their monthly checks. Understanding how COLA is calculated and who it affects can help recipients better prepare for the changes and ensure that their benefits continue to meet their needs amid rising living costs.

The Source 

Information for this story was provided by the Social Security Administration, FOX Business, The Senior Citizens League, and Newsweek.  This story was reported from Washington, D.C.

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