Beneficiaries also anticipate the annual milestone of the Social Security payment increase. Any increase is viewed as good news, particularly in years like this one when people are still dealing with high inflation and the effects of the pandemic. This is because the majority are on fixed income, which does not imply that it does not increase; rather, it means that it increases from a base amount that never changes, unlike salaries, which can grow exponentially.

It seems sense that many seniors were skeptical about the 2025 adjustment given that in 2024 inflation exceeded the Cost of Living Adjustment (COLA) in the first part of the year. Unfortunately, those who thought it would be low were correct; on October 10, it was declared to be 2.5 percent, and that figure is unchangeable.

Everyone can see that, depending on the amount of benefits pensioners were already receiving, this increase will either go farther or leave them in the same position. Experts disagree on whether this is a good thing, but a lower COLA means cooler inflation data, and a higher COLA would allow for some breathing room as long as the new year does not spike it again.

The average couple receiving Social Security benefits in 2024 will earn $3,014 a month, or more than $36,000 a year, according to figures from the Social Security Administration. Although this is not a bad amount, it is insufficient to pay the needs of the majority of people. However, it should be noted that Social Security benefits were only intended to cover approximately 40% of retirement expenses; the remaining amount was to be paid by a pension or retirement account.

The Social Security COLA increase

The average retired couple who get an average monthly Social Security benefit of $3,014 in 2024 will see a $75 boost in 2025, bringing their checks to $3,089 after accounting for the 2.5% increase. That would be an additional $900 a year, but it might not be enough to keep up with growing costs.

Multiply the 2024 amount by 2.5% to approximate your new benefit, as the cost-of-living adjustment (COLA) is a percentage of your present benefit. Official COLA notices will arrive in December, either online or through the mail, if you want to double-check your calculations. The January 2025 increase will appear on your check. The day of the month in which you were born determines the precise date of your payment:

• Born between the 1st and the 10th: Jan. 8, 2025
• Born between the 11th and the 20th: Jan. 15, 2025
• Born between the 21st and the 31st: Jan. 22, 2025

What if the COLA isn t enough?

In actuality, this raise will not, and has not for a long time, cover all of the additional costs that 2024 has brought to many families. The Senior Citizens League (TSCL) claims that since 2010, benefits have really lost almost 20% of their purchasing value, and it is not expected that they will return to their previous level very soon.

This is due to the fact that COLAs are computed using the inaccurate CPI for seniors, but politicians have not endorsed any solutions to address the problem. They use theConsumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W)instead of the one that is weighted towards those 62 and older, theCPI-E,which places more emphasis on healthcare and other senior related issues. Retirees have a number of choices for raising their income or savings while they are in retirement, including:

• Reducing spending when possible
• Working part- or full-time to supplement your checks
• Delaying retirement, if you re still working
• Exploring government assistance programs

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