Many people were concerned about how a lower-than-expected adjustment will impact their checks and quality of life when the SSA published the 2025 cost-of-living adjustment (COLA) on October 10.

The 2.5% shift caught many people off guard, including experts and those who would benefit. In order to compensate for the shaky economy in 2024, they believed that inflation would have slowed down before the year ended, although not by as much as it happened.

The compensation increase was announced notwithstanding the issues. It’s time to review the budget and determine how much of the additional funds will be required to pay for the expenses.

How far will your Social Security check go with the new COLA?

Since every person’s trip and Social Security check are unique, it is hard to predict how the rise will impact everyone. Regardless of the type of benefit received, it is comforting to know that all checks will increase by the same percentage. Of course, retirement benefits are part of that.

There is some information available from the SSA that might provide folks a general notion of how the increase will impact their financial situation. However, you only need to multiply your existing benefit by the 2.5% increase to determine the precise amount that your benefit will rise due to the new COLA.

The typical retired worker’s Social Security payout in 2024 will be around $1,920 per month. As seniors pass away and withdraw their checks, or as new retirees add their share to the mix, this figure fluctuates slightly.

Although there isn’t much of a difference, there is a few dollars’ change each month. This implies that we will receive an additional $48 if we apply the COLA.

Pay increases will be greater for individuals who earn more than this average, but they will be substantially smaller for those who do not.

What if the COLA isn t enough?

Now that they are aware that their Part B rates will increase by roughly $10 per month in the upcoming year, many Medicare beneficiaries—particularly those who are retired—are asking the same question. That would imply that the average hell would only increase by $38, not by $48.

Furthermore, a slowdown in inflation does not necessarily translate into a slowdown in pricing. It simply indicates that the rate of price increases should slow down.

Paying their payments has proven difficult for many people on fixed incomes, forcing them to utilize their meager savings. The wisest course of action for everyone would be to switch from using the CPI-W to the CPI-E when calculating the COLA.

The lives of young professionals in urban areas are the primary focus of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).

The CPI-E, on the other hand, is a weighted average of price changes for the same data but is more focused on the needs of people aged 62 and up. Since the index won’t be changing anytime soon, this cannot be the solution.

So, what other options do retirees have to make more money? You could use your savings or retirement accounts, but that s not a great idea. Although it’s said that you can’t take it with you, having a safety net is beneficial, and many recipients already lack funds.

Going back to work is not the best option, but a part-time job that can help with money, health insurance, social interaction, and many other benefits could be a good choice for healthy people who are willing to do it.

When will the increase be added to the checks?

The Supplemental Security Income check will be the first to receive the increase. It will be sent out on December 31 because January 1 is a holiday.

The rest of the payments will be sent out as planned: