The Cost of Living Adjustment (COLA) is the term used to describe the yearly benefit increase for seniors. The purpose of the COLA is to ensure that Social Security recipients in the United States have enough money to cover inflation.
Since the adjustment is determined by calculating the increase in the CPI-W in the third quarter of the year, each year’s seniors receive a different COLA. It is reasonable to assume that we receive a varied COLA because inflation varies from year to year.
Social Security recipients receive a much higher COLA in some years—for example, the 8.7% rise in 2023—and a lesser increase in other years. Given that the COLA for the later group will only be 2.5%, we will be in 2025.
It is true that, despite its apparent smallness, the 2.5% COLA is adequate given the rise in inflation this year. Additionally, it is evident from the amount of money we will receive over the course of the next year that seniors will not receive a slight increase—quite the contrary.
How much will Social Security Increase for Seniors in 2024?
Both elderly and those with disabilities will see a 2.5% rise in their monthly Social Security benefits. Accordingly, pensioners over 62 will receive a new sum in 2025, but it will undoubtedly be higher.
This group of retirees will receive a total of $500 over the course of the year if we account for this monthly increment. Since this number is only an estimate, we should remember that each citizen will receive an increment in line with their existing check collection.
Every year, we shall receive a payment from the Social Security Administration, regardless of whether we have an average payout or a maximum check. Although it will be less than in 2024, seniors will still get a rise in 2025.
What will the maximum Social Security check be next year?
As we have already indicated, we will see an increase in the checks beginning in 2025. And the check we currently have has a direct impact on this growth. Therefore, the rise will be greater if the check is higher. Each recipient will get a separate payment because the COLA increases benefits proportionately.
In 2025, seniors who are eligible for a maximum payout of $4,873 will receive a check for $5,180. This indicates that the monthly benefit received by citizens is greater than $5,000. For them, it is undoubtedly a good figure.
However, there will also be an increase in the Supplemental Security Income Social Security benefit. In 2025, this increase will rise from the maximum of $943 to the maximum of $967. However, that doesn’t mean that everyone will receive that much. Similar to Social Security retirement benefits, SSI benefits will rise by 2.5 percent.
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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.