Increase in Average Social Security Check for Retirees – New Exact Boost Now Official

There has been a lot of talk about the 2.5% increase in the cost of living adjustment (COLA) for next year, which will take effect in January 2025 and make people’s Social Security checks bigger.

The announcement came from the Social Security Administration. To give retirees and beneficiaries a better idea of how much it costs to live, supporters are calling for a new way to figure out the yearly COLA increase.

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It is because inflation has gone down that this increase is lower. As inflation goes up, the COLA goes up too. If inflation goes down, the cost of living adjustment for everyone will go down too.

The average Social Security check will change due to the new cost of living adjustment for 2025

This is the smallest rise since 2021. Check amounts are going up from $1,920 per month to $1,968 per month, so the total is about $48 more on the top line.

The Bureau of Labor Statistics said on Thursday that the 12-month consumer price index inflation rate was 2.4% in September.

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The Social Security Administration figures out the annual COLA based on how much the Consumer Price Index (CPI) goes up in July, August, and September. In July and August, prices went up 2.9% and 2.6% year-over-year, respectively.

Also, people who support Social Security recipients have long said that the way COLAs are calculated now, using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), does not take into account how seniors spend their money, which is different and more expensive.

Things are worse now because of the pandemic. Mary Johnson, a private analyst who keeps an eye on changes in the COLA, said that even though inflation has gone down, prices are still high for things like food and housing.

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The Bureau of Labor Statistics keeps an eye on the unofficial CPI-E index, which measures the prices of goods and services that adults aged 62 and up are more likely to buy.

Since 2023, the CPI-E has been rising faster than the index that the Social Security Administration uses to figure out its annual cost-of-living adjustment.

Supporters say this shows that the living standards of seniors and other people who get Social Security are going down. Just because the COLA went up does not mean that benefits will be changed for a recipient the following year.

A new legislation is being considered and could potentially impact the beneficiary’s Social Security check

The new monthly amount for 2025 is likely to be about $10 less than it is now because of Medicare Part B costs, which are automatically taken out of the Social Security check.

In general, the 2022 Inflation Reduction Act is changing how much healthcare costs. Another thing is that the law put new limits on out-of-pocket costs, but it also had unintended market effects that caused current prescription drug coverage to end.

Because of the way politics work in Washington right now and how hard it is to deal with anything related to Medicare or Social Security, activists do not think that the bill to switch to the CPI-E, which has been reintroduced by some elected officials, will be passed.

According to Shannon G. Benton, executive director of the advocacy group Senior Citizens League, Congress is aware of the problem but can not do anything about it, especially when it comes to Social Security, which is seen as the third rail of politics.

How much money will beneficiaries receive in their 2025 Social Security check?

Thanks to the new 2.5% cost of living adjustment, here are the exact amounts of Social Security checks that retirees, survivors, disabled people, and people who get Supplemental Security Income (SSI) will get starting in January 2025:

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