The Social Security Administration (SSA) announced on October 10 that the average increase for retirement recipients will be about 50 dollars extra per month. No doubt, this is a much lower increase than for the 2023 or 2022 COLA.
However, it will still be a significant increase if you live on a very tight budget. Do not forget that those with the largest payments will get more extra dollars. For example, if your retirement check is worth 100 dollars, you get $2.5 extra per month. But if it is 1,000 dollars, you will get $25 extra.
Social Security will send a higher-than-average raise to these retirees
The largest increase will be for those who qualify for the largest benefit payment in 2024 and 2025. For your information, the largest benefit payment is worth $4,873 in 2024.
After the 2025 COLA increase, it will become $5,108. This will be the largest increase after COLA since they will get $235 more than in 2024. Another group of retirees who will receive a great boost will be those who qualify for $3,822 in 2024 at Full Retirement Age.
Their monthly payment will become $4,018 in 2025. Hence, eligible retirees will get $196 more than in the current year.
Other large boosts for some Social Security recipients
For example, if your monthly payment is $4,000, you will receive $100 after the 2025 COLA increase comes into effect. If you get $4,500 in 2024, you will receive $4,612.5 after the boost. If you get $5,000, you will get $5,125 in 2025.
Do not forget that the higher your Social Security payment, the more extra dollars you will receive in 2025. If you want to know the exact amount of your monthly payment, visit my Social Security account.
Most retirees will get a notice with the exact amount after COLA, but if you do not get it from Social Security, check it online. As you can see, the 2.5% COLA increase will be completely different if you get a small or a large payment.