The 50-dollar 2025 COLA increase for retirees sounds good. However, this Social Security boost for retirees, SSDI, and SSI is much lower than expected. As a matter of fact, average COLAs are about 2.6%.
So, the 2025 COLA increase for Social Security recipients and SSI beneficiaries is slightly lower than that. For your information, the 2024 COLA was just 3.2%. Retirees already thought that it was not enough. Even if it was higher than in 2025. So, no doubt this boost is frustrating and disappointing for many.
How many people will get COLA in the different Social Security and Federal programs?
For example, about 7.5 million Americans rely on SSI payments in 2024. So, all these recipients will get a 2.5% COLA increase. Since their average payment is worth $698, it will become about $715 after the boost.
SSI recipients can get up to $943 in 2024, and it will be up to $966 in 2025 thanks to the cost-of-living adjustment. Social Security recipients are a total of 68 million Americans.
Social Security sends money to SSDI recipients, but also, to retirees. Let’s not forget about survivor benefits, and spousal benefits which are another way to qualify for these monthly payments. Retirees will get on average $1,970 in 2025 (50 dollars extra), while SSDI recipients about $1,577 after COLA.
Are there any other Social Security adjustments after the 2025 COLA?
Actually, the new taxable maximum (contribution and benefit base will also increase) will also go up. It will not come into effect until January 2025 and it will be $176,100, up from $168,600.
So, there has been a 4.45% increase in the taxable maximum. This taxable maximum is important because high earners will stop paying taxes once they earn more than $176,100 in 2025.
If you earn it for 35 years, you may be able to get the largest Social Security payment if you file at 70, and have jobs covered by SSA. SSA will send a notice to show recipients the future amount in 2025. Get a my Social Security account to check the COLA notice online.
