7 Key Points About the 2025 Social Security COLA Increase

Akash Deep -

1. What is the Projected COLA Increase for 2025?

The projected COLA increase for 2025 is expected to be around 2.5%. This projection is based on the August Consumer Price Index (CPI) numbers, which is the second of three sets of numbers the Social Security Administration (SSA) will use to determine the 2025 COLA.

2. When Will the 2025 COLA Increase Take Effect?

The 2025 COLA increase will take effect in January 2025. Beneficiaries can expect to see the increased amount in their Social Security checks starting from this month.

3. How Will the COLA Impact Social Security Payments?

The COLA increase will raise monthly Social Security and Supplemental Security Income (SSI) payments to help beneficiaries keep up with the rising cost of living due to inflation. For example, retired workers can expect an increase of $48.01, bringing their average monthly benefit to $1,968.49.

4. What Are the Eligibility Criteria for the 2025 COLA Increase?

To be eligible for the 2025 COLA increase, applicants must be living in the United States, have a valid Social Security number, and meet specific age requirements for retirement benefits. For instance, retirement benefits will only be delivered to seniors with a minimum age of 65 years or above.

5. How Is the COLA Determined?

The 2025 COLA is determined based on the percent increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of 2023 to the third quarter of 2024.

6. When Will the Official COLA Announcement Be Made?

The Social Security Administration will officially announce the 2025 COLA increase on October 10, 2024. This announcement will provide the final details on the COLA amount and its impact on beneficiaries.

7. What Should Beneficiaries Do After the Announcement?

After the announcement, beneficiaries should keep an eye out for personalized COLA notices in December 2024. These notices will detail exactly how much they will receive in 2025. Beneficiaries can also check their my Social Security account online for updates.