The Social Security Administration (SSA) has revealed that the 2025 Cost-of-Living Adjustment (COLA) will increase benefits for retirees, Supplemental Security Income (SSI), and Social Security Disability Insurance (SSDI) recipients by 2.5%. Though slightly lower than the 3.2% adjustment in 2024, this boost will still provide vital financial support to millions of Americans.
Who Will Receive $600 Extra Per Year from the 2025 COLA?
The 2.5% COLA will result in an additional $50 per month for retirees currently receiving the average Social Security retirement benefit of $1,920, which translates to an extra $600 per year.
For instance:
- If your current monthly benefit is $1,920, your payment will increase to $1,968 after the 2025 COLA adjustment.
- Those receiving smaller benefits, such as $900 per month, will see a $22.50 monthly increase, totaling $270 extra annually.
This increase, while modest, will offer much-needed relief to retirees, particularly those living on fixed incomes. For more detailed information about how COLA impacts Social Security benefits, you can visit the Social Security Administration website.
SSI Recipients’ Increase
SSI recipients, who typically receive lower benefits, will see an increase of $23 per month, or $276 annually. Although smaller than the increase for retirees, it remains a critical boost for those who rely on these payments for financial stability.
2025 COLA Payment Schedule
The new COLA adjustment will take effect in January 2025 for retirees, with payment dates based on birthdate:
- Payments will be distributed on January 3, 8, 15, or 22, 2025.
However, SSI recipients will receive their adjusted payment earlier on December 31, 2024, as January 1 is a federal holiday.
Key Takeaways from the 2025 COLA
- Retirees receiving the average benefit of $1,920 will get an extra $600 per year.
- SSI recipients will see an increase of $23 per month, totaling $276 annually.
- The 2025 COLA payments will begin in January 2025 for most, with SSI recipients receiving theirs in late December 2024.
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While this COLA adjustment helps address rising costs of living, it remains a vital part of Social Security’s mission to support beneficiaries amidst inflationary pressures.