On October 10, 2024, the Social Security Administration will explain the cost-of-living adjustment (COLA) for 2025. So far, all we can do is guess what it might be until then. Based on what we know now, the next COLA might be less than what beneficiaries have seen in the last few years.
This news could be bad for seniors who are already having a hard time because prices are going up and they don’t have many ways to make money in retirement. But before you start to worry, it’s important to know that everyone’s Social Security checks will go up in different ways. How to tell if you’ll get a bigger-than-average raise next year.
All Social Security recipients will see their checks grow by the same amount when the new COLA starts to kick in. But because everyone gets a different amount of benefits, the growth in value will be different for each person.
An average old worker gets $1,920 a month from Social Security as of August 2024. There will be an above-average 2025 COLA (Cost of Living Adjustment) in dollars for people who are already getting more than this amount.
2025 Social Security COLA Update
The Senior Citizens League’s most recent guess is that the COLA will be about 2.5% in 2025. With this change, the average monthly Social Security check would go from $1,920 to $1,968, a $48 rise. If your present checks are more than the average $1,920, you can expect an extra $48 or more every month as long as the COLA doesn’t drop below this estimate.
Calculating Your 2025 Social Security Check
You can get a rough idea of what your checks might look like in 2025 by adding 2.5% more to the amount you already get from Social Security. Keep in mind that this is just a guess; the real number will be released on October 10.
What if the COLA Isn’t Enough?
There’s a good chance that the 2025 COLA won’t be enough to stop the rising costs of living that many retirees have been experiencing over the past year. Many people think this is because of how the government figures out COLAs, which can be very discouraging.
Regrettably, this method of measurement can only be changed by the government. This means that retirees will have to find other ways to make up for what Social Security doesn’t pay for.
Even though having saves is a good thing, a lot of people don’t have enough saved for retirement, so they have to find other ways to make money.
Government Benefits to Consider
There are also perks from the government that might be able to help you pay for things like food, housing, utilities, and medical care. Remember that the government needs time to look over these forms, so if you think you’ll need them soon, you should send yours in as soon as possible.
- Food Assistance – Programs that help cover grocery costs.
- Housing Assistance – Support for affordable housing options.
- Utility Assistance – Aid for managing utility bills.
- Healthcare Assistance – Programs to help with medical expenses.
If you apply early, you’ll be sure to get the help you need when you need it.
As soon as the 2025 Social Security COLA is made public, you need to start making plans for your budget for the next year. Planning ahead will help you know exactly how much money you can take out of your savings and how much you’ll get from other sources to pay for things. Make your plan now, not in January.
Also See:- Who will get tomorrow’s Social Security payment?