Note: Beginning in January 2025, Ohioans will get higher Social Security payouts.
Over 72.5 million Americans will be impacted by the 2.5% increase in Social Security benefits and Supplemental Security Income (SSI) payments in 2025, the Social Security Administration (SSA) said today.
Starting in January, the average Social Security retirement pension will rise by almost $50 per month due to the cost-of-living adjustment (COLA).
This rise is just less than the 2.6% average COLA over the previous ten years. The COLA for 2024 is 3.2% in contrast.
Increased payments to over 7.5 million SSI participants will start on December 31, 2024, while adjustments will be made to almost 68 million beneficiaries in January 2025.
Some individuals receive benefits from both Social Security and SSI.
Other Adjustments for 2025
In line with average pay growth, the maximum earnings subject to Social Security tax will also increase, from $168,600 to $176,100.
Notifications and Simplified Notices
Beginning in early December, beneficiaries will receive mail notifications on their amended benefit levels.
The SSA will publish new, one-page COLA announcements this year. Personalized information including precise benefit amounts, deduction specifics, and significant dates will be included in these notifications.
COLA notices can be seen online by anybody with a personal my Social Security account, which the SSA says is quicker and safer than waiting for mail delivery.
When their notice becomes accessible online, beneficiaries can opt up for email or SMS alerts to be notified.
By November 20th, people must register for a my Social Security account in order to view the COLA notice digitally.
Medicare Updates
Visit www.medicare.gov to learn more about the 2025 Medicare reforms.
Social Security beneficiaries who have enrolled in Medicare will be able to access their updated benefit levels via the my Social Security Message Center starting in late November.
In December, beneficiaries who opt for traditional mail notifications will get their COLA notices.
How COLA is Calculated
The Bureau of Labor Statistics’ Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) is used to calculate the yearly COLA.
See Also: These dates in November and December 2024 will mark the closure of Social Security offices.
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