Americans who are retired will get more money each month thanks to the cost-of-living adjustment (2025 COLA). You will get an extra 2.5% if you are at least 62 years old and get a check or direct deposit from the Social Security Administration (SSA).
The Agency is doing this to make up for the fact that people can’t buy as much because prices keep going up and prices are going up.
Remember that the 2.5% COLA increase will apply to all Social Security retirees. That is, you will benefit from it no matter how much money you get from SSA.
How much will the COLA increase be?
So, if you get $100 from Social Security, the COLA boost will give you an extra $2.50 every month. That is, if your payment is $100 a month now, it will be $102.5 a month in 2025.
Because of this, you will get an extra $25 if your monthly payment in retirement is $1,000. So, you need to get $2,000 from SSA in 2025 in order to get an extra $50 a month from the COLA increase.
That is, if your payment is $2,000 a month in 2024, you will get an extra $600 a year. There are 12 payments in a year, and each month you get an extra $50. Twelve times fifty is 600.
When will I know the exact amount of the COLA increase?
Soon, the Social Security Administration will send out a notice to retirees about the change in the cost of living. Because of this, all retirees will know the exact amount of money they will get starting January 3.
You can check your mySocial Security account if you don’t get a notice from the SSA in December 2024. To see this information, you will need to sign in, of course. So sign up if you haven’t already.
Just so you know, the COLA will be added to the January payments. These are the dates that the Social Security Administration has set for payments:
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