In order to fight inflation, the 3.2% COLA for social security payments is set to happen in 2024. Medicare rates are going up, and seniors are having a hard time paying their bills, but some people are still not sure if this increase is enough.
Early estimates for 2025 point to a smaller COLA, which has made people more worried about seniors’ ability to spend money.
Social Security Benefits For Retirees
Over the past few decades, Social Security benefits have helped over 71 million Americans who are retired, veterans, or have children by giving them money they need.
The COLA was created in 1973 and has been used every year since 1975 to help these funds keep up with inflation. Because of this change, Social Security payments have mostly been able to keep up with rising prices.
In 2024, the 3.2% COLA raise stayed the same, which meant that beneficiaries’ monthly payments went up by a small amount. This change was made to help people deal with the rising cost of living, especially now that inflation has been causing a lot of problems.
But some people aren’t sure if this raise will be enough to keep people’s purchasing power, especially those who are on fixed incomes.
Increase In Social Security COLA
At first, it was thought that the COLA would go up by 2.57% in 2025. If approved, people who get Social Security would get an extra $50 a month on average. Experts are worried that this change might not be enough to meet the financial needs of seniors, even though it would bring them some comfort.
The planned rise in Medicare Part B rates could make things even more expensive for retirees. These rates have been steadily going up, and they often go up faster than the cost-of-living adjustments (COLAs) that cover medical costs and outpatient care.
So, for many seniors, the net benefit rise may be a little less after Medicare premiums are taken out of their Social Security income.
Monthly Payments Of Social Security Benefits
Social Security payments depend on how much money was paid in taxes, how long someone worked, and when they retired. As of 2024, the following groups of beneficiaries received the following average monthly payments:
- About $1,907 was given to retired workers each month.
- Couples in retirement who filed jointly took home about $3,303 a month.
- The average monthly survivor benefit was $1,509.50.
- On average, retired workers’ spouses made $910 a month.
- An average of $892.39 was given to retired workers’ children each month.
- Individuals who received Supplemental Security Income (SSI) were paid an average of $943 per month.
- Couples that received SSI benefits were typically paid $1,415 a month.
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