Social Security to Announce New COLA in October – This is the official date for confirming the check increase
According to Lagradaonline, Millions of beneficiaries have been eagerly awaiting the official announcement of the cost-of-living adjustment (COLA) for 2025, and that wait is almost over. Social Security benefits are a crucial lifeline for millions of retired workers, survivors, and disabled individuals in the United States. The COLA can significantly impact whether these individuals can manage their expenses in the new year or fall behind, especially for those without substantial assets to rely on. With just under two weeks remaining until the announcement, it’s essential for beneficiaries to prepare for potential changes in their financial planning.
Upcoming COLA Announcement and Its Importance
On October 10, the Social Security Administration (SSA) will officially announce the COLA for 2025. This delay is due to the calculation of COLAs using inflation statistics from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) during the third quarter of the year. While July and August CPI-W data are already available, the September data won’t be released until the announcement date. Preliminary estimates suggest a 2.5% COLA for 2025, a notable decrease from the 3.2% increase seniors will receive at the start of 2024.
Potential Benefits of a Lower COLA
While a 2.5% adjustment may seem disappointing, it does signal a slowing rate of inflation. Social Security recipients could experience some relief through reduced costs for food, utilities, and other essential bills, even if their payments don’t rise as much as they would prefer. Overall, the financial landscape could improve for many beneficiaries. However, seniors must also consider the forthcoming announcement of the Part B premium for Medicare in 2025. The standard Part B premium is deducted from the monthly payments of those who are enrolled in both Medicare and Social Security, and a significant increase in these premiums could diminish the benefits of any COLA.
Preparing for Financial Changes
Given that inflation is projected to decline, seniors may be less adversely affected by a smaller Social Security COLA in 2025. Nevertheless, it’s wise to prepare for the possibility of a reduced increase. Beneficiaries struggling to make ends meet might consider additional strategies, such as:
- Seeking a part-time job to supplement income
- Cutting back on non-essential expenses
- Evaluating transportation needs; for instance, if a car is not essential, eliminating that expense could lead to considerable savings
Estimated Payment Increases for 2025
Although the COLA increase has not yet been confirmed, we can consider the latest projection of 2.5% for estimating future payments. If this increase is enacted, here’s a forecast of the new payment amounts that retired workers, survivors, and disabled individuals could expect in the upcoming year.
| Retirement benefits | Social Security checks | 2.5% COLA increase | Extra income |
|---|---|---|---|
| On average | $1,900 | $1,948 | $48 |
| Age 62 | $2,710 | $2,778 | $68 |
| Age 67 | $3,822 | $3,918 | $96 |
| Age 70 | $4,873 | $4,995 | $122 |
| Survivor benefits | Social Security checks | 2.5% COLA increase | Extra income |
|---|---|---|---|
| On average | $1,505 | $1,543 | $38 |
| Individual | $1,773 | $1,817 | $44 |
| 2 Children | $3,653 | $3,744 | $91 |
| Disability benefits | Social Security checks | 2.5% COLA increase | Extra income |
|---|---|---|---|
| On average | $1,537 | $1,575 | $38 |
| Blind recipients | $2,590 | $2,655 | $65 |
| Maximum payment | $3,822 | $3,918 | $96 |
| SSI benefits | Social Security checks | 2.5% COLA increase | Extra income |
|---|---|---|---|
| On average | $698 | $715 | $17 |
| Individuals | $943 | $967 | $24 |
| Couples | $1,415 | $1,450 | $35 |
| Essential person | $472 | $484 | $12 |
