The Social Security Administration just announced the COLA raise for retirees, people who get SSI, and people who get SSDI in 2025. With the new rise, benefits will go up by 2.5%. This means that the cost of living increase is less than what it was in 2024, when it was 3.2%.
If you are getting retirement benefits, this 2025 COLA will mean that you will get an extra $50 a month. People who get SSI can only get an extra $23 a month, or $276 a year. This is because their maximum payment is much smaller.
Who will receive $600 extra per year thanks to the Social Security COLA increase for 2025?
The Social Security Administration says that retirees will get an extra $50 a month, which adds up to $600 extra, just in one year. In other words, they will have extra money every month.
This means that you will get $1,968 every month if your monthly payment from Social Security is $1,920, which is the average amount for seniors. Because of this, it is a big help for people who don’t make much money.
Keep in mind that you won’t get an extra $50 after the 2025 COLA boost if your payment is already very low. Take the case of retirees whose monthly payment is only $900. The 2025 COLA will only add $22.5 per month to your benefits if you get that much already.
When will Social Security send the 2025 COLA increase?
No changes will be made to seniors’ benefits due to the new cost of living until January 3, 8, 15, or 22, 2025. The 2025 COLA raise will not be sent in any of the payments that retirees get in October, November, or December.
This increase will be given to people who get SSI in 2024. Because January 1 is a holiday, these people will get their January payment on December 31. Because of this, SSA needs to send the monthly payment early.
The SSA never put SSI payouts on the weekend or a Federal holiday. So, only people who get Supplemental Security Income will be able to enjoy the 2.5% increase in 2024. The extra money won’t be sent to the rest of the people until January.
Also See:- Social Security payment of $1,920 this week, check if you will get the 2025 COLA increase