The 2025 COLA increase will be essential for more than 72.5 million Americans. This 2.5% cost-fo-living adjustment may seem low, but it can be of great help if you have a low income. Not to mention the fact that you will receive more dollars if you qualify for a large Social Security payment.
The Social Security Administration confirmed that, on average, retirement benefits will go up by 50 dollars. Of course, some retirees may get a larger boost if they qualify for a large payment in 2024. For example, the largest payment this year is $4,873, while it will become $5,108 in 2025. A staggering COLA boost worth $235.
Who will receive $50 extra after COLA and when?
If you qualify for a monthly retirement benefit payment worth $2,000, you will receive 50 dollars extra in your January payment. That is about 25 dollars extra if your payment is worth $1,000. The possible paydays will be January 3, January 8, 15 or 22, 2025.
However, if your Social Security payment is just worth $500, your boost will be about $12.50. Therefore, to benefit from getting a higher amount, you must have a higher payment.
Some seniors who receive a low retirement benefit payment may also qualify for SSI benefits. SSI beneficiaries will also receive the 2025 COLA increase. The new maximum amounts for Supplemental Security Income will be $967 (individuals) and $1,450 (married couples).
Who will receive $100 extra from the 2025 COLA?
To receive a 2025 COLA increase worth $100 you must receive a Social Security payment of at least $4,000. Hence, few retired workers will be able to achieve it. To get the largest Social Security checks and direct deposits retirees must have:
- worked for 35 years
- had jobs covered by Social Security
- earned the contribution and benefit base (taxable maximum)
- filed at the age of 70
Those citizens who file early will receive a reduction. This could be up to 30% of your benefit payment if you file at the age of 62. Delay filing until you reach Full Retirement Age to get 100% of your benefits ot file at 70 to get delayed credits.