More than 72.5 million Americans will benefit from the 2025 COLA rise. This 2.5% cost-of-living adjustment may appear tiny, but it can be really beneficial if you have a low income. Not to mention that you will receive extra money if you qualify for a high Social Security payment.
The Social Security Administration stated that, on average, retirement benefits will increase by $50. Of Nevertheless, some retirees may receive a greater benefit if they are eligible for a significant payment in 2024. For example, the greatest payment this year is $4,873, and it will increase to $5,108 in 2025. A stunning COLA increase worth $235.
Who will receive $50 extra after COLA and when?
If you qualify for a monthly retirement benefit payment of $2,000, you will get an additional $50 in your January payment. That is around $25 more if your payment is $1,000. The probable payday dates are January 3, 8, 15, or 22, 2025.
However, if your Social Security check is only worth $500, your raise will be approximately $12.50. To profit from receiving a bigger amount, you must make a higher payment.
Some seniors who receive low retirement benefit payments may also be eligible for SSI assistance. SSI recipients will also receive the 2025 COLA hike. The new maximum amounts for Supplemental Security Income will be $967 for individuals and $1,450 for married couples.
Who will receive $100 extra from the 2025 COLA?
To earn a $100 COLA increase in 2025, you must receive a Social Security payment of at least $4,000. As a result, just a few retired workers will be able to complete it. To receive the highest Social Security benefits and direct deposits, retirees must have:
- Worked for 35 years
- Had jobs covered by Social Security
- Earned the contribution and benefit base (taxable maximum)
- Filed at the age of 70
Citizens who file early will receive a discount. If you file at age 62, you could receive up to 30% of your benefit payment. Delay filing until you reach full retirement age to receive 100% of your benefits, or file at 70 to receive delayed credits.
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