The annual benefit increase for seniors is known as the Cost of Living Adjustment (COLA). The COLA provides Social Security pensioners in the United States with enough money to cover inflation, or so the goal goes.
Each year, seniors receive a different COLA since the adjustment is based on the increase in the CPI-W in the third quarter of the year. It is reasonable to expect a varied COLA each year because inflation varies.
In some years, Social Security beneficiaries receive a big COLA, such as 8.7% in 2023, while in others, the rise is smaller. In the latter category, we shall find ourselves in 2025, with a COLA of barely 2.5 percent.
While the 2.5% COLA may appear little, it is sufficient given the inflation increase we have seen this year. Also, if we look at the monetary amount we will receive in the coming full year, we can see that seniors will not receive a tiny increase, but rather the contrary.
How much will Social Security Increase for Seniors in 2024?
The monthly Social Security benefits for seniors and disabled recipients will rise by 2.5%. This means that pensioners over the age of 62 will receive a new sum in 2025, which will undoubtedly be higher.
If we account for the monthly increase, this set of retirees will receive a total of $500 over the course of the year. This amount is an approximation, therefore keep in mind that each citizen will receive their appropriate rise based on the check they now collect.
Whether we have a maximum check or an average payout, the Social Security Administration (SSA) will always send us a payment each year. In 2025, seniors will enjoy a smaller increase than in 2024, but it will still be an increase.
What will the maximum Social Security check be next year?
As previously indicated, there will be an increase in checks beginning in 2025. And this rise is directly related to the check we have right now. So, if we have a larger check, the rise will be greater. Each beneficiary will receive a different payment because the COLA increases in proportion.
Seniors receiving a maximum check of $4,873 will receive a check for $5,180 in 2025. This indicates that citizens with a benefit receive more than $5,000 per month. It is undoubtedly a positive figure for them.
On the other side, the Supplemental Security Income (SSI) Social Security payout will grow. This hike will raise the maximum from $943 to $967 in 2025. However, this does not indicate that everyone will receive the maximum. As with Social Security retirement income, SSI payouts will rise by 2.5%.
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