The Social Security Administration has just unveiled the 2025 COLA increase for retirees, SSI, and SSDI recipients. The new boost will increase benefits by 2.5%. Thus, it is a lower cost-of-living adjustment than in 2024, which was 3.2%.
This 2025 COLA will mean getting $50 extra per month if you are receiving retirement benefits. SSI recipients have a much lower maximum payment, so they can just receive $23 extra per month, a total of $276 per year.
Who will receive $600 extra per year thanks to the Social Security COLA increase for 2025?
Since the Social Security Administration claims that retirees will receive 50 dollars extra per month, they will get $600 extra in just one year. That means they will have additional money every month.
For example, if your monthly payment is $1,920, the average amount for retirees on Social Security, you will get $1,968 per month. Therefore, it is an important boost for those retirees who have a low income.
Bear in mind that if your payment is much lower, you will not receive a $50 increase after the 2025 COLA boost. Take for example retirees whose monthly payment is just $900. With such a payment, the 2025 COLA will only increase your benefits by 22.5 dollars per month.
When will Social Security send the 2025 COLA increase?
The new cost-of-living adjustment will not take effect until January 3, 8, 15, or 22, 2025 for retirees. Therefore, the 2025 COLA increase will not be sent in any of the October, November, or December payments for retirees.
SSI recipients will get the COLA boost in 2024. These beneficiaries will receive their January payment on December 31 because January 1 is a holiday. Thus, SSA needs to send the monthly payment ahead of schedule.
SSA never scheduled SSI payments on the weekend or on Federal holidays. Hence, only Supplemental Security Income recipients will enjoy the 2.5% boost in 2024. The rest of the recipients will need to wait until January to get extra money.