Time is running out to receive the last Social Security payments in December. None of them will include the 2025 COLA this month. However, they will start getting this extra money from January 3, 2025 onward.
For your information, the percentage that Social Security benefits will increase will be the same for 65-year-olds and for other age groups. Nevertheless, the amount of dollars a recipient will get will be completely different if they receive a large or a small payment.
Social Security COLA increase depending on your payment amount
If you qualify for a Social Security payment worth $1,000, your boost will be of just 25 dollars. This is because you receive 2.5 dollars extra for each 100 dollars you get from the Agency.
Thus, if your payment is $2,000 you will receive 50 dollars extra per month. This is the average COLA increase that the Administration claimed. It is an annual boost of about $600.
Of course, if you qualify for a monthly payment of just $500, your COLA increase will be about 12.5 dollars extra per month. Hence, the lower your payment is, the lower the boost will seem to be.
Social Security COLA for large payments
Some retirees aged 65 may qualify for a payment of $3,000. Of course, to receive so much money, you must have paid enough taxes for many years and being a high earnerd is required.
So, with a $3,000-payment, a 65-year-old could receive $75 extra per month. In just one year, that will imply receiving $900. That is a staggering increase if you see it from an annual point of view.
It is unlikely that a 65 year old who has just files receive a Social Security check worth $4,000. This is because you get a reduction if you file before Full Retirement Age. Those retirees who receive $4,000 in 2024 will get $100 extra in 2025. So, this means you will get $1,200 extra per year.
