Increase In Average Social Security Checks For Retirees – Exact Amount Already Announced

The Social Security Administration has announced that starting in January 2025, Social Security checks for retirees, survivors, disabled people, and people who get Supplemental Security Income (SSI) will go up by 2.5% COLA.

Some people want a new formula to be used to figure out the annual COLA increase for retirees and beneficiaries so that it better reflects their cost of living.

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This is the smallest rise since 2021. This means that the monthly top-line will go up by almost $48, which means that the usual cheque amount will go from $1,920 to $1,968.

Social Security has confirmed an average increase in monthly benefits for next year

Thursday, the Bureau of Labour Statistics said that the consumer price index inflation rate for the past 12 months hit 2.4% in September.

The annual COLA is set by the Social Security Administration based on the rise in market prices in July, August, and September. Prices for goods and services went up by 2.9% year over year in July and 2.6% in August.

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Advocates for Social Security users say that the current process for figuring out COLA, which is based on a measure called the consumer price index for wage earners and office workers in cities, does not take into account how seniors spend their money in unique and more expensive ways.

Mary Johnson, a freelance analyst who keeps an eye on changes in the COLA, says that even though the rate of inflation has gone down, prices are still high for things like food and housing.

That image is supported by facts. The Social Security Administration’s current index for figuring out the yearly cost of living adjustment has not gone up as fast as the unofficial price index called the CPI-E (for “elderly” CPI).

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Which tracks goods and services that people aged 62 and up are more likely to buy.

Supporters also think this shows that seniors and other people who get Social Security are facing a falling standard of living. A rise in the COLA is not the only way that users’ payments will change next year.

Medicare Part B costs are directly taken out of Social Security checks, so the new monthly amount for 2025 should be about $10 less than the old one.

Because of the Inflation Reduction Act of 2022, healthcare costs are changing in general. However, the law had unexpected effects on the market, which led to the phase-out of current prescription drug coverage. It also put new limits on out-of-pocket spending.

Legislators are working to address challenges with Social Security and Medicare

Some lawmakers have brought up the bill to switch to the CPI-E again, but they do not think it will be passed because of the current political situation in Washington and the difficulties of dealing with Social Security and Medicare.

According to Shannon G. Benton, executive director of the Senior Citizens League, Congress is aware of what is going on, but the stalemate does not seem to be able to solve anything, not even Social Security, which is seen as the third rail of politics.

How much money will beneficiaries receive in January’s Social Security checks?

Millions of people who get Social Security will finally know how much their checks will go up in January thanks to the new 2.5% cost of living adjustment (COLA) that was announced yesterday.

Thanks to the official COLA percentage, the following people will get paid next year: retirees, widows, disabled people, and SSI recipients.

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