Upcoming Social Security Announcement About the 2025 COLA – They Will Reveal the Increase in Retiree Checks

According to Lagradaonline, Almost every year, the Social Security Administration (SSA) reviews and adjusts the benefits provided to Social Security recipients based on the Cost of Living Adjustment (COLA). This adjustment is essential for maintaining the purchasing power of Social Security benefits in line with inflation and serves as a lifeline for many dependents on the program. The COLA affects all beneficiaries, including retirees, survivors, and individuals receiving Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI).

How COLA is Calculated

The process of determining the COLA is directly tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Specifically, the SSA examines CPI-W data for the third quarter of the current year—covering July, August, and September—and compares it to the CPI-W data from the same period in the previous year. The percentage increase between these two sets of data forms the basis for the COLA, which is then applied to Social Security payments for the following year.

For example, the COLA for 2024 was calculated to be 3.2%, reflecting inflationary trends observed in the previous year’s CPI-W data. Although this figure was lower than adjustments seen during the pandemic and its aftermath, it remained above the average adjustment for the past decade. As for the upcoming year, predictions about the potential COLA increase exist, but the exact percentage has not yet been finalized and will not be for at least a month.

Timeline for the 2025 COLA Announcement

The official COLA for 2025 will be announced once the necessary CPI-W data for the third quarter (July, August, and September) has been compiled and analyzed. Traditionally, this announcement occurs in October, following the release of the final CPI-W figures.

Also read: How to check your eligibility and file for SSI (Supplemental Security Income)

Based on historical patterns, the 2025 COLA is expected to be revealed around October 10th, coinciding with the release of the Bureau of Labor Statistics (BLS) Consumer Price Index report, which will include the finalized data crucial for determining the COLA for the upcoming year.

Once announced, the 2025 COLA will apply to all SSA programs, including retirement benefits and SSI payments, starting in January 2025.

Predictions for the 2025 Social Security Adjustment

While the official COLA for 2025 remains undetermined, various estimates based on available data aim to prepare seniors for what to expect. According to the most recent estimate from The Senior Citizens League, a prominent nonpartisan organization advocating for seniors, the COLA for Social Security in 2025 could be around 2.57%. This estimate is based on CPI-W data from July, although data for August and September is still forthcoming.

Experts may disagree on decimal points, but there is consensus that the anticipated increase will likely not suffice to cover rising expenses for those on fixed incomes, such as seniors. In fact, many of the predicted increases may not even cover the expected rise in Medicare fees for 2025, let alone the impacts of inflation on essential items like groceries, gas prices, or housing.

The situation is pressing; many argue that recent COLA adjustments have failed to bridge the gap between income and expenses, leaving many in a vulnerable economic position reliant on rapidly depleting savings. While the 2025 COLA may not resolve these issues, it could provide temporary relief for some vulnerable beneficiaries, helping them stay afloat a little longer.