Millions of Social Security recipients have been waiting for the official cost of living adjustment (COLA) to be made public. They will not have to wait much longer to find out how much their payments will go up starting next year.
There are now millions of retired workers, survivors, and disabled people in the US who depend on Social Security payments.
Generous cost-of-living adjustment (COLA) payments from Social Security can make the difference between being able to pay your bills in 2019 and getting behind, especially for people who do not have a lot of money saved up.
The official cost of living increase will be made public in less than two weeks. All beneficiaries need to know this so they can start making plans for their money.
Social Security beneficiaries should prepare to make some changes
The Social Security Administration (SSA) will make the 2025 COLA public on October 10.
This is how long seniors have to wait because COLAs are based on inflation data from the third quarter of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
The CPI-W figures for July and August are already out there. But the numbers for September will not be ready until October 10, which is why the delay.
The Social Security COLA will be 2.5% in 2025, according to early predictions. In contrast, seniors will get 3.2% COLA at the start of 2024, so this is a big drop.
Even so, a 2.5% COLA for Social Security is good news because it means the rate of inflation is going down.
People who get Social Security might be very happy if the prices of food, utilities, and other bills go down, even if their income do not go up as much as they would like in the new year.
Things might go well in the end. But seniors will not be able to know for sure if their monthly benefits will go up until Medicare announces the standard Part B premium for 2025. This is the case even after an official cost of living change is made.
Part B fees are taken out of the monthly payments of seniors who are on both Medicare and Social Security. A big Part B increase could make any future COLA much less strong.
Since inflation is expected to go down, a smaller Social Security COLA in 2025 might not hurt seniors as much. Still, getting ready in case you get a smaller raise is not a bad idea.
If you are having trouble paying your bills, you might want to get a second job or spend less. If you want to get a part-time job, you might not be able to get rid of your car.
You might be able to get by without a car, though, if you do not want to work. This could save you a lot of money and raise your COLA in 2025.
How much extra money will beneficiaries receive in their Social Security payments next year?
We will look at the last estimate of a 2.5% COLA increase, even though it has not been proven yet. Here are all the new amounts that retired workers, survivors, and disabled people will get next year if the 2.5% raise goes through.
It is important to remember that this is just a guess; the actual percentage could change next month, and so will the Social Security payouts.
| 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 |
| 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 |
