Depending on how large your Social Security check is, you may receive a different amount of money after the 2025 COLA. If you receive a small check, you should not expect a lot of extra money.
Even if the 2025 COLA increase does not come into effect until January 1 for retirees, they could know the exact boost next month. So far, retirees need to pay close attention to the latest projections. In fact, one of the best projections, if not the best one, is the one from the Senior Citizens League.
Latest 2025 COLA projection for retirees on Social Security
The Senior Citizens League claims that there could be a 2.5% increase if inflation remains the same. Since inflation seems to continue decreasing, the expectations for a higher COLA are vanishing too.
Social Security benefits could increase by about $48 on average. So, if the average payment for retirees is worth $1,920 as of August 2024, it could be about $1,968. Or even $1,970 if the average retirement benefit keeps increasing in the following months.
Of course, if your payment is too low, the COLA increase may be disappointing. However, if you get a large check or direct deposit every month, the increase will be fine.
Who could receive $50 extra after the Social Security COLA increase?
If you are receiving a Social Security retirement benefit worth $2,000 in 2024, you will receive a $50 increase in January if there is a 2.5% increase. Therefore, there could be some retirees who could get more than 50 dollars extra per month.
If you are receiving a Social Security check worth $3,000, your new monthly payment after COLA could be $3,075. Hence, it will be $75 extra per month, which is a fantastic boost.
Since the largest retirement benefit payment is worth $4,873 in 2024, some retirees will get even more money. For example, if you are getting $4,000 from Social Security, you will get $100 extra with a 2.5% COLA.