The Cost of Living Adjustment (COLA) is the annual rise in senior citizen entitlements. In theory, the COLA ensures that Social Security recipients in the United States have enough money to cover inflation.
Seniors receive a different COLA each year since the adjustment is dependent on the increase in the CPI-Win during the third quarter of the year. Given that inflation fluctuates, it makes fair to assume that our COLA varies annually.
Each year, Social Security recipients receive a COLA. In certain years, like the 8.7% growth in 2023, it is very significant; in other years, it is not. In 2025, when the COLA will be just 2.5 percent, the final group will be formed.
Undoubtedly, the 2.5% COLA may not look like much, but it is more than sufficient given this year’s rising prices. Additionally, it is evident that seniors will have a significant increase in their income throughout the course of the upcoming year.
How much will Social Security Increase for Seniors in 2024?
Seniors and those with disabilities will receive a 2.5% increase in their monthly Social Security benefit. This implies that retirees above 62 will receive a new number in 2025. However, that figure will undoubtedly be greater.
This group of retirees will receive $500 in total over the course of the year due to this monthly raise. Since this figure is only an estimate, we should keep in mind that each citizen will receive a rise in their check amount.
Regardless of our maximum check or average payout, we will always get a payment from the Social Security Administration each year. Although the 2025 increase for seniors will be smaller than the 2024 increase, it will still be an increase.
What will the maximum Social Security check be next year?
As previously discussed, the checks will increase in size beginning in 2025. And the check we currently have is directly related to this rise. Therefore, a larger check will result in a larger rise.
Since the COLA is a proportional increase, each recipient will get a different sum of money.
In 2025, seniors who currently receive a check of $4,873 year will receive one for $5,180. To put it another way, those who receive benefits receive more than $5,000 every month. For them, that figure is unquestionably favorable.
However, the Social Security Supplemental Security Income benefit will also increase. This increase will increase from its maximum amount of $943 to its highest amount of $967 in 2025.
However, that does not imply that everyone will receive that maximum. The 2.5% increase in SSI payments will be equal to the increase in Social Security retirement benefits.
See also: How to safeguard your identity following the U.S. Social Security number leak.
Note: Every piece of content is rigorously reviewed by our team of experienced writers and editors to ensure its accuracy. Our writers use credible sources and adhere to strict fact-checking protocols to verify all claims and data before publication. If an error is identified, we promptly correct it and strive for transparency in all updates, feel free to reach out to us via email. We appreciate your trust and support!
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.