Farewell to the cost of living adjustment – ​​social security announces another new change

The Social Security Administration has announced that monthly checks will change again in January due to the new cost of living adjustment (COLA) which was announced on October 10 and will come into effect in early 2025. This annual adjustment is an important safeguard against inflation and ensures that compensation for disabled people and pensioners can keep pace with inflation. On October 10, 2024, the Social Security Administration confirmed a official COLA increase of 2.5% for 2025, paving the way for the 2025 financial environment and providing much-needed certainty and clarity to beneficiaries. From now on we can say goodbye to the 2024 COLA.

Social Security checks will change in 2025 due to the Cost of Living Adjustment (COLA)

Currently, this applies to eligible beneficiaries Supplemental Security Income (SSI) program, different payment amounts are available depending on the category they choose when applying. For example, those who filed as individuals can expect a monthly benefit of up to $943, or an average of $698, depending on their income and resource circumstances. Additionally, those who signed up as a couple can receive up to $1,415, and individuals who meet Essential Person (EP) requirements can receive an additional $472 per month.

Understanding the importance of monthly benefits and how they impact millions of retirees, vulnerable Americans and… disabled people is essential for understanding the key role of the Cost of Living Adjustment (COLA). These figures highlight the critical role that COLA plays in protecting the purchasing power of recipients, especially in an environment of unstable inflation rates. Therefore, we would like to share with you some important facts and information about the upcoming one COLA increaseso that all beneficiaries can be aware of the impact this will have on their future benefits.

The new cost of living adjustment (COLA) is set at 2.5%

On October 10, Social Security Administration has announced that COLA will reach 2.5% in 2025. Beneficiaries will see significantly is increasing. For example, people currently receiving $472 will receive $484 per month, an increase of $12. Similarly, those receiving $698 will now receive $715, while those receiving $943 will receive $967. Advantages will increase to $1,450 for couples receiving $1,415, an increase of $35. Furthermore, for some recipients, even small increases can have a significant impact on their ability to cover daily expenses.

The cost of living adjustment (COLA) is an essential safety net that holds Social Security Benefits in line with the cost of living, protecting the financial security of millions of Americans who rely on these benefits as their primary source of income. It’s important to note that the official announcement on October 10 will give beneficiaries a clear idea of ​​what to expect in 2025, even if it won’t immediately change the amounts on their checks. By being able to anticipate changes and integrate them into their budgeting practices, individuals and families can plan their finances more successfully.

How much will Social Security checks increase with a 2.5% COLA?

In addition to understanding the importance of the cost of living adjustment (COLA) and how it affects beneficiaries, here is a projection of how much Social Security checks will increase per program in 2025: