Millions of Americans receive Social Security retirement benefits. Those who file at the age of 70 will benefit from delayed credits. The 2025 COLA increase of 2.5 will also benefit 70-year-olds as well as other retirees.
The 2025 COLA will bring an increase of 2.5%. This may seem a low percentage but it is actually higher than in many other previous cost of living adjustments in the United States. It is true that many seniors believe that the CPI-W is not as accurate as one for the seniors would be.
Social Security payment amounts after COLA of 2.5%
The Administration will increase retirement benefits by 2.5%. Therefore, all monthly payments will increase by 2.5 dollars for each 100 dollars a 70-year-old recipient gets.
That is about 25 dollars for each $1,000 you get from the Social Security Administration. So, the COLA will increase a payment of $2,000 by 50 dollars. Thus, from January 2025 onward, recipients who get $2,000 in 2024 will get $2,050.
As you can see, the older the payment of a 70-year-old is, the more extra dollars they will receive from SSA. So, if you are receiving a monthly payment of $3,000, you will receive $3,075 after the 2025 COLA boost.
How much will retirement benefits increase after COLA of 2.5% for a 70-year-old getting a check worth $4,000?
If you have qualified for a Social Security payment worth $4,000, your check or direct deposit will become $4,100. A 100-dollar increase in your retirement benefits is great.
This will mean that you are receiving a total of $1,200 extra per year after the 2025 COLA increase of 2.5%. However, very few American workers can earn so much money because they must have been high earners.
The highest payment for 2024 and 2025 is for those who:
- filed for Social Security at 70
- worked in jobs covered by SSA
- worked for at least 35 years
- earned the taxable maximum for a minimum of 35 years too
*The taxable maximum refers to the contribution and benefit base. As of 2024, it is $168,600 and it will also increase in 2025 thanks to COLA.