Good news for retirees, people receiving disability benefits and seniors – Social Security announces new checks starting in January

Christmas and the New Year are barely over a month away. Many seniors and those receiving government assistance are already considering the future and how their finances and Social Security benefits will be impacted by the 2025 cost of living adjustment that they will receive in January.

Although the transition occurs year, a lot has happened since the epidemic, so it will be crucial to reevaluate the situation in order to make the best choices.

On October 10, they announced that all of their benefit checks would begin to include the 2.5% COLA in January 2025. This will assist the cheques stay up to date with inflation, allowing the recipients to continue making purchases over time.

Supplemental Security Income is one of the five programs overseen by the SSA. No matter how much money is in the check, the same percentage of the adjustment will go to each of these programs.

Everyone has been disappointed by this shift, particularly because it is less than what it has been in recent years. Furthermore, in the first quarter of 2024, inflation swiftly overtook the COLA, rendering it ineffective. Beneficiaries are less certain of their new, greater benefit because they fear that this may occur again.

How is the Social Security COLA calculated?

The Bureau of Labor Statistics releases the COLA each month, which the SSA uses to calculate the COLA each year. It displays the typical shift in consumer goods and services costs.

This is problematic, particularly for those who assist the elderly, as the index is obviously designed to meet the demands of young professionals, and because the majority of the receivers are elderly, it fails to appropriately account for their needs and expenses.

The following was stated in a statement regarding the most recent COLA news. According to our survey, 62% of seniors fear that their retirement income won’t even be sufficient to pay for necessities like food and medical expenses, and 67% of seniors receive more than half of their income from Social Security.

According to the league, a recent survey of 3,000 senior citizens revealed that 72% of respondents said Congress should prioritize switching to an index that more accurately reflects the changes in senior prices.

There are other solutions to this issue, but using the CPI-E is one of the more widely accepted and logical ones. Although it employs the same metrics as the CPI-W, this index places greater emphasis on expenses such as housing and healthcare for those over 62.

This may sound unjust, but the reality is that nearly everyone who is at risk and need government assistance has similar concerns. Benefits for everyone, not just seniors, might be increased by using the CPI-E, which has repeatedly been demonstrated to be a greater adjustment.

If you haven’t calculated your personal benefits yet, don’t worry; notifications from the SSA outlining the change and its implications for your benefits will be sent out shortly. If you already have a notice, you can view it online.

Which government benefits make adjustments using COLA?

The SSA is not the only government entity that alters benefits using the COLA, despite what most people believe.

Increases for those who qualify for and the program (which covers food stamps and other benefits) are also calculated using this metric. Because of this, it is among the most beneficial metrics that recipients ought to be aware of.

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