The Social Security Administration is set to announce the 2025 cost-of-living adjustment (COLA) on October 10, 2024. Until then, all we can do is speculate about what it might be. Current data suggests that the upcoming COLA may be lower compared to what beneficiaries have seen in recent years.
This news might be disappointing for seniors who are already dealing with rising costs and have limited sources of retirement income. However, before you start worrying, it’s crucial to understand that the increase in Social Security checks varies for everyone. Here’s how to determine if you’ll receive an above-average boost next year.
When the new COLA goes into effect, all Social Security beneficiaries will see their checks grow by the same percentage. But because everyone receives different benefit amounts, the actual dollar-value increase will differ from person to person.
As of August 2024, the average Social Security check for retired workers is $1,920 per month. If you’re currently receiving more than this amount, you’ll benefit from an above-average 2025 COLA (Cost of Living Adjustment) in dollar value.
2025 Social Security COLA Update
The latest estimates from The Senior Citizens League suggest that the 2025 COLA will be around 2.5%. This adjustment would increase the average monthly Social Security check from $1,920 to $1,968, resulting in a $48 boost. As long as the COLA doesn’t fall below this estimate, you can expect an additional $48 or more each month if your current checks are above the $1,920 average.
Calculating Your 2025 Social Security Check
To get a rough idea of what your 2025 checks might look like, simply add an extra 2.5% to your current Social Security payments. Remember, this is only an estimate, and the official number will be announced on October 10.
What if the COLA Isn’t Enough?
It’s highly likely that the 2025 COLA won’t be sufficient to counteract the rising living costs that many retirees have experienced over the past year. This can be quite disheartening, and many attribute it to the way the government calculates COLAs. Sadly, only the government has the power to change this calculation method, so retirees will need to explore other ways to cover the gaps that Social Security doesn’t fill.
While having personal savings is undoubtedly beneficial, many individuals find themselves without sufficient retirement savings, leaving them to depend on alternative income sources.
Government Benefits to Consider
You may also be eligible for various government benefits that can assist with essential expenses such as food, housing, utilities, and healthcare. Keep in mind that the government takes time to review these applications, so it’s wise to apply as soon as possible if you anticipate needing them in the near future.
- Food Assistance – Programs that help cover grocery costs.
- Housing Assistance – Support for affordable housing options.
- Utility Assistance – Aid for managing utility bills.
- Healthcare Assistance – Programs to help with medical expenses.
Applying early ensures you can receive the support you need when you need it.
Once the 2025 Social Security COLA is announced, it’s crucial to start planning your budget for the upcoming year. By preparing ahead of time, you’ll know exactly how much money you can withdraw from your personal savings and how much you’ll receive from other sources to cover your expenses. Don’t wait until January—get your plan in place now.