Over 71 million Americans receive Social Security payments. The Administration sends money every month to retirement, disability, SSI, survivor, and spousal benefits in the United States.
These benefits lose purchasing power over time. In order to diminish this loss, Social Security updates payments through COLAs. The 2025 COLA increase figure will be announced in October and there are just a few days left to know about it.
2025 COLA increase unveiled by Social Security on this date
October 10 will be when millions of Americans can learn about the percentage that their 2025 benefit payments will increase due to COLA. This year’s COLA does not seem to be a high figure.
However, it is much better than getting a reduction or not getting any extra money at all. The thing is some Social Security recipients believe that the COLA will be implemented in October, but this is not possible.
Social Security will start sending the retirement and disability benefits with the 2025 COLA increase from January 2025 onward. Only SSI recipients will get money from the Federal government with the COLA boost in December 2024. But this will be their January 1 payment sent ahead of schedule.
Social Security and the 2025 COLA projection
The most accurate and the best 2025 COLA projection is from the Senior Citizens League. They have made very accurate projections in the previous years, so let’s have a look at what they have to say so far.
As of September 11, 2024, the Senior Citizens League projection is of just 2.5%. Unfortunately, it has kept decreasing over time. Although this means that inflation is cooling down, so it is good for customers because prices do not increase so much.
The thing is the 2025 COLA, just like any other, will bring more dollars to those Social Security recipients who have large payments. Even if the percentage is the same for everyone, the higher your payment, the better. See some examples below:
- benefit payment worth $1,000 in 2024: It would become $1,025 after COLA
- benefit payment worth $2,000 in 2024: It would become $2,050 after COLA
- benefit payment worth $3,000 in 2024: It would become $3,075 after COLA
- benefit payment worth $4,000 in 2024: It would become $4,100 after COLA
- benefit payment worth $943 in 2024: It would become $966 after COLA
- benefit payment worth $1,415 in 2024: It would become $1,450 after COLA