Social Security Benefits Set to Rise

Social Security benefits are set to rise in 2025, providing some relief to retirees and other beneficiaries. The Social Security Administration (SSA) is expected to announce a cost of living adjustment (COLA) increase of around 2.5% for next year. The COLA is calculated based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).

This index measures changes in prices for goods and services that impact the budgets of many American households. Analysts from the Senior Citizens League predict a 2.5% COLA increase for 2025. This is down from their earlier estimates of 3.2% in May, as inflation has been cooling in recent months.

A 2.5% increase would be the smallest since 2021. However, it would still provide an average boost of $48 per month to beneficiaries’ checks. The exact 2025 COLA will be officially announced by the SSA in October.

Social Security COLA expected in 2025

Beneficiaries will be notified of their new benefit amounts by mail in December. The information will also be available online starting in mid-November.

The payment schedule for Social Security benefits in 2025 has been confirmed:

SSI recipients will get their first payment with the COLA increase on December 31, 2024. This is because January 1, 2025 is a federal holiday. Retirees, survivors, and disabled individuals who claimed benefits before May 1997 will receive their payment on January 3, 2025.

Those who claimed benefits after May 1997 will get paid on the second, third, or fourth Wednesday of each month. The exact date depends on their birthday. While the COLA increase provides some assistance, many retirees still face challenges.

Experts advise individuals to save for retirement through various means, such as 401(k) plans and personal investments. Relying solely on Social Security may not be enough to maintain financial stability in retirement.