The cost-of-living adjustment is an annual raise meant to keep Social Security recipients from losing buying power because of inflation.
Social Security is a group of government programs that help Americans enjoy retirement and meet their basic needs if they become disabled, lose their job, or suffer an unplanned tragedy like the death of a spouse or main breadwinner.
Each program needs to give enough money to cover these costs, but because the economy is always changing, programs need to be changed too so that beneficiaries can keep up with their changing needs and buying power.
If you get Supplemental Security Income (SSI) or Retirement, Survivorship, and Disability Insurance (RSDI), find out how much your Social Security checks will go up here.
How does the cost-of-living adjustment impact Social Security checks?
The cost-of-living change is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) and how much it went up from the third quarter of last year to the third quarter of this year.
The Bureau of Labor Statistics also figures out the CPI-W, which is the legal way to figure out how much your Social Security check will rise every year.
So, the fact that next year’s expected COLA is less than this year’s 3.2% cost-of-living increase is not always a reason to be worried. Social Security recipients will get an extra $50 a month in their income thanks to the current cost-of-living adjustment.
COLAs are not normal wage raises and are not meant to help seniors with their money. Instead, they are meant to protect Social Security recipients’ buying power from rising prices caused by inflation.
The cost-of-living increase does not make people’s lives better; instead, it is a safety net that makes sure seniors can keep paying their bills even though prices are going up. A group that fights for the rights of seniors, the Senior Citizens League (TSCL), says that the next one could be around 2.5%.
Unlike what was predicted last month, which was 2.63%. It will not be official until the second week of October, but people who get Social Security should know that if the 2.5% cost-of-living adjustment goes into force, their checks will go up in the following ways:
| Retirement benefits | Social Security checks | 2.5% COLA increase | Extra income |
| On average | $1,900 | $1,948 | $48 |
| Age 62 | $2,710 | $2,778 | $68 |
| Age 67 | $3,822 | $3,918 | $96 |
| Age 70 | $4,873 | $4,995 | $122 |
| Survivor benefits | Social Security checks | 2.5% COLA increase | Extra income |
| On average | $1,505 | $1,543 | $38 |
| Individual | $1,773 | $1,817 | $44 |
| 2 Children | $3,653 | $3,744 | $91 |
| Disability benefits | Social Security checks | 2.5% COLA increase | Extra income |
| On average | $1,537 | $1,575 | $38 |
| Blind recipients | $2,590 | $2,655 | $65 |
| Maximum payment | $3,822 | $3,918 | $96 |
Why should beneficiaries not fear a lower cost-of-living adjustment increase?
Though a lot of beneficiaries, especially retired workers, have said they are worried about the 2025 COLA rise. It is not always a bad thing to get a lower cost-of-living adjustment (COLA) rise than thought, as it could mean that inflation is going down.
So, if inflation keeps going down, people who get benefits will be able to pay their bills because prices will go down and Americans’ buying power will rise again.
But it is important to stay up to date on changes to Social Security and COLA, since the exact percentage could still change in the next few weeks.
Remember that you can get more information about your Social Security checks by going to your “My Social Security Account.”
This is where you can also download your financial records, ask for a new Social Security card, and do other things that have to do with Social Security.
Also, do not forget that you should wait at least three mailing days before calling the Social Security Administration’s customer service if your new benefits do not come on the due date.
Also see:-Social Security has confirmed that the maximum SSI benefit will go up