The cost-of-living adjustment (COLA) for Social Security benefits is a hot topic among retirees. With the official announcement expected in October, many are eager to know how much their checks will increase in 2025.
COLA Estimates and Inflation
While initial estimates suggested a lower COLA for 2025, recent inflation trends have led to revised projections. The current estimate is for a 2.63% increase. This is still below the higher increases seen in previous years, but it will provide some relief for retirees facing rising costs.
Impact on Social Security Checks
A 2.63% COLA would mean an increase of $46.37 for the average Social Security recipient. However, the exact amount will vary depending on your individual benefit level.
Early Payments for Some Recipients
Due to the timing of holidays, some Social Security recipients will receive their January 2025 payments earlier than usual. Those receiving Supplemental Security Income (SSI) will get their payment on December 31st.
Changes to SSI Benefits
In addition to the COLA, there are other changes affecting SSI benefits. Starting September 30th, the SSA will no longer consider “in-kind support and maintenance” when calculating your SSI benefits. This means you may receive a higher payment.
Stay Informed
As the official announcement for the 2025 COLA approaches, stay tuned for updates. Understanding these changes will help you plan your finances and make the most of your Social Security benefits.
