The Social Security Administration, which is part of the Federal Government, will name the 2025 COLA number on October 10. But this day might be sad for the 71 million people in the United States who received money.
The 2025 COLA raise from Social Security might not be as good as expected because high prices are still affecting retirees, people with disabilities, and people who get SSI benefits all over the country. So, a low cost of living increase might not be what people who get benefits need.
Latest 2025 COLA projection for Social Security
The Senior Citizens League has one of the best guesses for the 2025 COLA. They say that payments might only go up by 2.5%. Since the SCL has always been right about what will happen, it is assumed that payments will go up in a similar way.
The COLA for 2024 was only 3.2%, the COLA for 2023 was an amazing 8.7%, and the 5.9% increase for 2022 seems really small. But if you look back, COLAs seem to have been even smaller in the past.
So, a rise of 2.5% in the COLA is not that bad after all. In addition, it might be good for people who get Social Security payments and are about to move to a different tax bracket because their benefits are going up. In this case, it could mean less money for them.
Possible Social Security amounts after the 2025 COLA increase
If wages went up by 2.5%, some high earners who make $4,000 a year in 2024 might get an extra $100 every month starting in January 2025. That being said, the average payments are not that big.
So, in most cases, you can expect a modest boost. In this case, you might get an extra $48 if you get an average amount of $1,968. Folks who believe that $48 won’t make a difference should read this.
Put that money away and build up a backup fund. This will earn you $576 over the next 12 months. People who already get $1,000 from Social Security can only get an extra $25. That’s why whether you get more or less money from SSA will depend on how much you paid.