Over 71 million Americans receive money and rely on one of the many Social Security benefits like retirement. Payments will increase thanks to the 2025 COLA boost.
The latest projections have decreased, which means that inflation has cooled down. It is good because prices have gone down too, but it may mean that Social Security recipients may get a lower COLA increase.
Latest 2025 COLA increase projection for Social Security
The Social Security Administration (SSA) may increase Social Security retirement, disability (SSDI), and SSI benefits by about 2.5%. That means beneficiaries may receive a lower COLA than in 2024, 2023, and 2022.
So, after being used to receiving more extra money thanks to the Cost of Living Adjustments, now they may be disappointed. However, it is always best to think about the increase you could get in a whole year.
For example, if you qualify for a COLA increase worth $50 extra per month, you will receive a total of 600 dollars in just one year. So, if you believe this increase is too small, just save those extra 50 dollars and create an emergency fund.
Requirements to get a $50 COLA increase in Social Security benefits
There are a few things you must comply with before you can get this boost:
- having filed for Social Security retirement, SSDI (disability benefits)
- gotten approval to receive any of these benefits
- qualify for any of the January 2025 payments on the 3rd, 8th, 15th or 22nd
- in order to get $50 extra, there must be a 2.5% increase
- your monthly payment must be worth $2,000
- remain eligible for Social Security and do not break its rules
If you are receiving SSI (Supplemental Security Income), you cannot receive a $50 increase after the COLA boost. Not even if you qualify for the largest payment. In fact, you could only receive 23 dollars extra if you qualify for the largest amount an individual could get in 2024.