The Social Security Administration makes payment adjustments to increase monthly benefits every year. In this way, retirees will get extra money from the 2025 COLA and it will help them maintain their purchasing power.
The latest 2025 COLA projection for Social Security seems to be lower than in the previous years. Still, the Senior Citizens League claims that it could be about 2.57%. Therefore, it could end up being 2.6% after being rounded or a completely different figure since the inflation information for September is not available yet.
How much money could the Social Security COLA for 2025 deliver retirees?
As of July 2024, retirees receive an average payment of about $1,919. Hence, if there were a 2.57% increase, the COLA would give retirees about 49 dollars extra per month, Or, what is the same $588 per year.
Getting $588 extra per year after a possible 2.57% 2025 COLA sounds great even if it is not the Social Security boost seniors expected. Bear in mind that some American workers in retirement get a lot less. Check possible amounts after the projected boost of 2.57%.
- Social Security check worth $800: $820
- Social Security check worth $900: $923
- Social Security check worth $1,000: $1,025
- Social Security check worth $1,200: $1,230
- Social Security check worth $2000: $2,051
- Social Security check worth $3,000: $3,077
- Social Security check worth $4,000: $4,102
Social Security 2025 COLA: important dates in 2024
Keep in mind that if you are collecting Social Security checks or direct deposits you will not receive the 2025 COLA boost until January 2025. However, you will be able to learn about the Cost of Living Adjustment figure in less than 2 months.
Supplemental Security Income recipients are the exception to the rule. According to Social Security’s payment schedule, their January payment with the 2025 COLA will be delivered on December 31 since January 1st is a Federal holiday.
Retirees and SSDI recipients will have to wait until at least January 3 to receive the increase. Other will have to wait until the second, third or fourth Wednesday in January to get the payment with the Cost of Living Adjustment boost.