The window for receiving the final Social Security benefits in December is closing. This month, neither of them will feature the 2025COLA. But on January 3, 2025, they will start getting this extra money.
As far as you are aware, the percentage increase in Social Security benefits for people 65 and older will be the same. However, whether a recipient receives a large or small payment will affect how much money they receive.
Social Security COLA increase depending on your payment amount
You will receive a $25 increase if you are eligible for a $1,000 Social Security benefit. This is due to the fact that for every $100 you receive from the Agency, you get an extra $2.5.
Therefore, you will receive an extra $50 each month if you contribute $2,000. An average COLA increase was reported by the Administration. It is an increase of over $600 each year.
Naturally, your COLA rise will be about $12.5 per month if you are eligible for a $500 monthly benefit. Therefore, the smaller the perceived bump, the lesser your payment.
Social Security COLA for large payments
A $3,000 stipend may be available to certain retirees who are 65 years of age or older. Naturally, you must have a high income and have paid enough taxes over a long period of time in order to get such a sizable amount of money.
Therefore, a 65-year-old may receive an extra $75 each month with a $3,000 payment. Within a year, you will be paid $900. From an annual perspective, that is a shocking rise.
A 65-year-old who recently applied for Social Security is unlikely to get a payment of $4,000. This is because there is a decrease for filing before the Full Retirement Age. In 2025, retirees who received $4,000 in 2024 will get an extra $100. This implies that you will get an additional $1,200 annually.
Additionally, see what you can and cannot purchase with your $975 SNAP payment in December for a delicious Christmas lunch.
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Eliot Pierce is a dedicated writer for ChiefsFocus.com, covering local crime and finance news. With a keen eye for detail and a passion for storytelling, Eliot aims to provide his readers with clear and insightful analysis, helping them navigate the complexities of their financial lives while staying informed about important local events. His commitment to delivering accurate and engaging content makes him a valuable resource for the community.