The cost-of-living adjustment (2025 COLA) will increase the monthly income of retired Americans. If you receive a check or direct deposit from the Social Security Administration (SSA) and are at least 62 years old, you will receive an additional 2.5%.
The Agency is taking this action to compensate for the fact that customers are unable to purchase as much due to the ongoing price increases.
Keep in mind that all Social Security seniors will be affected by the 2.5% COLA hike. In other words, regardless of the amount of money you receive from SSA, you will still profit from it.
How much will the COLA increase be?
Therefore, the COLA boost will provide you with an additional $2.50 per month if your Social Security payment is $100. In other words, if your monthly payment is $100 now, it will be $102.5 in 2025.
This means that if your retirement payment is $1,000 per month, you will receive an additional $25. Therefore, to receive an additional $50 per month from the COLA rise, you must receive $2,000 from SSA in 2025.
In other words, you will receive an additional $600 annually if your payment in 2024 is $2,000 per month. You receive an additional $50 per month, and there are twelve installments in a year. 600 is twelve times fifty.
When will I know the exact amount of the COLA increase?
Retirees will soon get a notice from the Social Security Administration regarding the change in the cost of living. As a result, beginning on January 3, all retirees will be aware of their precise payout amount.
If the SSA doesn’t notify you in December 2024, you can check your mySocial Security account. Naturally, you must sign in in order to view this information. So, if you haven’t already, sign up.
For your information, the January payments will include the COLA. The Social Security Administration has established the following dates for payments:
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