When there is inflation, Social Security payments go up, which could make it harder for retirees and other recipients to buy things. This way, payments like SSDI, SSI, and retirement may be able to keep up with the rising cost of living.
It’s possible that this year’s cost of living adjustment (COLA) raise will be less than the ones that came before. Prices haven’t gone up as much, which is good, but it’s bad because people who get Social Security get less money.
What other disadvantages may have a higher Social Security COLA boost?
Along with having to deal with rising prices, some seniors may have to pay taxes because of a higher COLA for Social Security. There is no need to worry if you don’t have any other ways to make money.
But if you get Social Security and also make money from other sources, you might be in a different group. If you go over this amount, you might have to pay more taxes.
That means your perks might go down. People with low incomes would definitely gain from a bigger COLA increase, even if it doesn’t change their benefits. If you get more money, you might not be able to get extra help like SNAP or SSI. Is there a new COLA projection, though?
Social Security 2025 COLA projection
The Administration won’t say anything about the 2025 COLA until October 10, so people who get it will have to depend on predictions from experts, such as those from the Senior Citizens League.
There is a new COLA projection from the Senior Citizens League this week that is worse than expected. It is now 2.5%. The amount of money you get from retirement, SSDI, or SSI will not change. Instead, it will become $1,025.
The estimate from the Senior Citizens League was 2.57% on August 14, down from 2.63% the day before. So, retirees and other Social Security recipients probably won’t be able to get a bigger COLA than they did in 2023 or 2022.
Remember that a rise of 2.57% means that for every $100 you get from the government, you will get an extra $2.57. Let’s say a $1,000 check turned into $1,025.7.