Americans who are retired will be happy to hear that their much-anticipated cost-of-living adjustment (COLA) check will be going up this week. The news came out on Thursday.
The Bureau of Labor Statistics says that the official COLA raise for next year will be 2.5%, and it will start in January 2025. It is important to note that not all beneficiaries will see the same increase in their monthly benefits.
Payment amounts depend on things like full retirement age, work history, Social Security taxes, income limits, and the type of disability, especially for people who get benefits through the Social Security Disability Insurance (SSDI) program.
Which retirees will see the largest increase in their Social Security checks next year?
When the new cost of living adjustment (COLA) of 2.5% goes into effect, retiree benefits will go up by a set number. The exact amount will depend on how much each person gets now. Before that, retirees got an average of $1,920 a month from Social Security.
People who are already getting more than that amount may expect it to go up even more. For people who get an average benefit of USD 1,920, this would mean that their check would go up by USD 48 every month, making it USD 1,968.
Please look at the following information to learn more about all the new numbers that retirees, survivors, disabled people, and people who get Supplemental Security Income (SSI) will get:
| Retirees 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 |
| SSI benefits | Social Security checks | 2.5% COLA increase | Extra income |
| On average | $698 | $715 | $17 |
| Individuals | $943 | $967 | $24 |
| Couples | $1,415 | $1,450 | $35 |
| Essential person | $472 | $484 | $12 |
As you can see above, the people who will benefit the most are retirees who put off getting benefits until they turned 70. Survivors, disabled people, and SSI users will all get smaller increases.
The numbers show that those people will get an extra $122 in their monthly checks, for a total of $4,995 for the month. Still, beneficiaries should know that retirees must meet strict requirements in order to get this maximum reward.
Because of this, you should always talk to a financial advisor or Social Security expert about moving before making any changes to your finances.
3 strategies retirees can take advantage of to maximize their monthly benefits
It is possible that millions of adults around the world are trying to make ends meet with every dollar they have now that the COLA has gone up.
So, in this part, we will talk about the most important things that Social Security recipients can do to get the most out of their benefits.
Diversify your sources of income: Putting more money into fixed-income products like bonds or buying in stocks that pay dividends can also help. In the long run, other options, like annuities, can be set up to provide a more stable source of income.
However, each owner should talk to financial experts about this option based on their unique situation.
Optimize your retirement time: One of the most important things you can do to make your retirement more financially stable is to optimize your time.
This is especially true when it comes to Social Security payments. One of the best ways to get the most out of your Social Security payments is to wait to start collecting until you are 70 years old.
If you wait to start collecting Social Security until after you reach full retirement age, you may be able to increase your monthly benefit by 7% to 8% each year. This will increase both your initial benefit and your future benefit.
Take charge of your spending: Being proactive about keeping costs down can help you save a lot more for retirement. One smart thing to do is to downsize.
If you move to a smaller, less expensive home or area, you can save a lot of money on your mortgage, property taxes, and repairs.
Also see:-Social Security payment to retirees in hours – $4,873 check prepared
