According to recent news, Social Security check payments for retirees, widows, disabled people, and people receiving Supplemental Security Income (SSI) will go up by 2.5% COLA in January 2025.
This was confirmed by the Social Security Administration. It has been suggested that the annual COLA raise for retirees and beneficiaries should be calculated in a different way. This would better reflect their cost of living.
The new cost of living adjustment for 2025 means that the maximum amount of money that retirees can get from Social Security will go up by $122.
This means that monthly benefits will go from $4,873 to $4,995 for people who started getting benefits before May 1997, and on January 8, 15, and 22 for people who started getting benefits after that date.
Social Security has confirmed the new maximum Social Security check increase for retirees
The Bureau of Labor Statistics said on Thursday that the 12-month CPI inflation rate in September was 2.4%. The annual COLA is worked out by the Social Security Administration using the rise in market prices in July, August, and September.
In August, prices went up 2.6%, and in July, they went up 2.9% year over year.
Supporters of Social Security recipients say that the current way of figuring out the COLA, which uses the CPI for wage makers and office workers in cities, does not take into account how seniors buy things, which are different and more expensive.
Mary Johnson, a freelance analyst who keeps an eye on changes in the COLA, says that even though inflation has gone down, the cost of things like food and housing has stayed high.
The Social Security Administration’s current index for figuring out annual cost-of-living adjustments has not gone up as fast as the unofficial Consumer Price Index for the Elderly (CPI-E), which tracks the prices of goods and services that people aged 62 and up are most likely to buy.
Supporters also say it shows that seniors and other people who get Social Security are seeing their standard of living drop. And the raise in the COLA is not the only way that beneficiaries’ payments will change next year.
The new monthly amount for 2025 is expected to be about $10 less than it was before. This is because Medicare Part B costs are automatically taken out of Social Security checks.
Because of the Inflation Reduction Act of 2022, healthcare prices are changing in general.
The law increased the amount of money people could spend out of pocket, but it also had unexpected effects on the market, which led to the end of current prescription drug coverage.
Proposals to address challenges with Social Security and Medicare
Some lawmakers have brought up the bill to switch to the Consumer Price Index for the Elderly (CPI-E) again, but they do not think it will be passed because of the political climate.
In Washington and the problems that come with working with Medicare and Social Security. Shannon G. Benton, executive director of the advocacy group Senior Citizens League, says that Congress is aware of the problem but can not seem to find a solution.
This could finally put Social Security check payments for people in the US at risk.
How will the 2.5% cost of living adjustment impact Social Security check amounts per program?
The new cost of living adjustment (COLA) of 2.5% was released yesterday. This means that millions of Social Security recipients will finally know how much their January checks will grow.
Based on the official COLA percentage, the following payouts will be made to retirees, survivors, disabled workers, and SSI users next year:
| Retirement benefits (Plus 2.5%) | Survivor benefits (Plus 2.5%) | SSDI benefits (Plus 2.5%) | SSI benefits (Plus 2.5%) |
| On average: $1,948
Age 62: $2,778 Age 67: $3,918 Age 70: $4,995 |
On average: $1,543
Individual: $1,817 2 Children: $3,744 |
On average: $1,575
Blind recipients: $2,655 Maximum payment: $3,918 |
On average: $715
Individuals: $967 Couples: $1,450 Essential person: $484 |
Also see:-New Child Tax Credit Announced: Here’s How You Can Receive $1,700
