Social Security Releases 2025 Benefit Changes, Beginning January 1
The Social Security Administration (SSA) announced on October 10, 2024, that Social Security benefits and Supplemental Security Income (SSI) payments for over 72.5 million Americans will increase by 2.5% in 2025.
Here’s what you need to know:
1. Increase amount: The 2.5% cost-of-living adjustment (COLA) will result in an average increase of about $50 per month for Social Security retirement benefits.
2. Effective date: Increased payments to nearly 7.5 million people receiving SSI will begin on December 31, 2024. Social Security beneficiaries will see the increase in their checks starting in January 2025.
3. Reason for the increase: The COLA is based on the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of 2023 to the third quarter of 2024. This adjustment helps maintain the buying power of Social Security benefits in the face of inflation.
Important points:
• Impact of Medicare premiums: While the COLA increases Social Security benefits, it’s important to remember that Medicare Part B premiums are also increasing in 2025. This means some beneficiaries may not see the full effect of the COLA in their net Social Security payments.
• Individual benefit amounts: The exact amount of your increase will depend on your current benefit amount. You can access your personalized information online through your my Social Security account.
For the most up-to-date and detailed information, please refer to the official SSA website (ssa.gov) or the Social Security blog (blog.ssa.gov).
Social Security Increase For 2025 Chart
After a 3.2% increase this year, the Social Security cost-of-living adjustment might reach 3% in 2025. An impartial expert on Medicare and Social Security, Mary Johnson, made that prediction.
The annual bonus from Social Security is $16,728; have you heard about it? Retirees cannot obtain a “bonus” in reality. Your benefit amount is determined by the Social Security Administration (SSA) using a precise formula that takes into account your lifetime earnings.
March COLA projections from Johnson were 2.4%. For 2025 COLA, the official announcement is made in October.
According to the Senior Citizens League, the average cost-of-living adjustment (COLA) during the past 20 years has been approximately 2.6%. Even though it is not a raise, the approximately 67 million people who receive Social Security benefits can nevertheless get an increase from the cost-of-living adjustment (COLA).
If no action is taken to strengthen the Social Security and Medicare Trust Fund, it will become insolvent in approximately ten years, resulting in a 23% reduction in income for present and future beneficiaries.
