Over 50 M Social Security Retirees Should Do This on October 10
According to Vibes.okdiario, Once you apply for Social Security retirement benefits, there’s usually not much else you need to do related to the federal program. However, it’s crucial to keep your information up to date with the Social Security Administration (SSA) if you experience any changes in address, bank account, or marital status. If you decide to withdraw your application—perhaps to return to work—you can do so within one year of your initial application.
Tax Obligations for Retirees
Apart from the updates, retirees need to focus on paying any taxes owed on their benefits. Many retirees may not owe taxes if their income is low enough and if they reside in a state that does not tax retirement benefits.
Important Task for Retirees on October 10
There is one critical task all retirees should remember to complete concerning their retirement benefits, and it should be done on October 10, 2024. The good news is that this task is incredibly simple: just go online to the Social Security Administration website, specifically the press releases section at ssa.gov/news/press/releases.
Anticipated Press Release
On the morning of October 10, the SSA will issue a highly anticipated press release revealing the Cost-of-Living Adjustment (COLA) for 2025. This announcement will disclose the percentage increase in Social Security benefits, which will take effect starting January 2025, along with details about the average dollar amount by which benefits will increase next year.
Other Important Changes to Watch
In past announcements, the COLA press releases have often included information on significant changes for the upcoming year. For example, last year’s COLA announcement also mentioned an increase in the Social Security payroll tax maximum.
The Role of the Bureau of Labor Statistics (BLS)
So why is October 10 the chosen date for this announcement? It coincides with the Bureau of Labor Statistics (BLS), which releases its inflation numbers for September on this day. While BLS doesn’t always announce the September inflation figures on October 10, it typically provides this vital data around the middle of each month.
The latest inflation numbers include the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which plays a crucial role in determining the annual COLA for Social Security.
How Is the COLA Calculated?
It’s important to note that the average CPI-W for the third quarter of 2024 will be compared to the average CPI-W for the third quarter of 2023. The percentage increase, rounded to the nearest tenth of a percent, will be declared as the official 2025 Social Security COLA.
What to Expect for the 2025 COLA
While the exact amount of the 2025 COLA will be officially announced soon, early predictions can provide some insight. According to CPI-W data from July and August, the Senior Citizens League, a nonprofit senior advocacy group, estimates that the COLA will be around 2.5%. This increase would result in an average monthly benefit rise of approximately $48 for retirees.
Recent analyses indicate that this anticipated 2.5% increase is lower than the expected 3.2% COLA for 2024 and significantly less than the 8.7% increase seen last year. However, it aligns closely with the average benefits increase of approximately 2.6% over the past two decades.
Key Dates for Social Security Benefits
Mark your calendar for October 10 to find out how much your SSA benefits will increase. If you happen to miss this date, there’s no need to worry; the SSA typically starts notifying individuals about their new benefit amounts by mail starting in December.
