October 10, when the new Social Security 2025 COLA increase for payments will be unveiled
According to Vibes.okdiario, The Federal Government, through the Social Security Administration (SSA), is set to announce the 2025 Cost of Living Adjustment (COLA) figure on October 10. However, this date may bring disappointment to the 71 million recipients across the United States as many are bracing for an adjustment that may not adequately reflect rising living costs.
Low COLA Projections Amidst High Prices
The potential for a low COLA increase has raised concerns, as high prices continue to burden retirees, Social Security Disability Insurance (SSDI) recipients, and Supplemental Security Income (SSI) beneficiaries nationwide. One of the most reliable projections for the 2025 COLA comes from the Senior Citizens League (SCL), which estimates a possible increase of just 2.5%. Given SCL’s track record for accuracy, this projection may be close to reality.
In contrast to last year’s 3.2% COLA, the previous year’s 8.7%, and the 5.9% adjustment in 2022, a 2.5% increase feels rather minimal. However, when looking back at historical adjustments, a 2.5% COLA isn’t as unfavorable as it might seem at first glance.
Also read: There will be 4 SSI payments in the next 3 months – Social Security makes it official
Potential Changes in Social Security Payments
If the 2.5% increase materializes, higher earners who currently receive $4,000 monthly could see an additional $100 beginning in January 2025. However, the average Social Security payment is significantly lower, leading to more modest increases for most recipients. For instance, someone receiving the average benefit of $1,968 would gain an extra $48.
While $48 may not appear to make a substantial difference, it can be beneficial if managed wisely. Recipients are advised to save this amount and build an emergency fund, which could grow to $576 over the course of a year. Conversely, individuals receiving $1,000 monthly from Social Security would only see an increase of $25, highlighting the varying impact of the COLA based on payment amounts.
