If you live in the United States and get Social Security, you should know that the new cost of living adjustment (COLA) will be revealed soon. Today, the Social Security Administration will announce the 2025 cost-of-living adjustment increase. This will give people a better idea of how much more money they will get each month in the new year.
The official news won’t come out until tomorrow, but experts have been talking about the possible 2025 COLA increase for months, so we have a good idea of what to expect. This page shows the most current guesses for the 2019 COLA increase. We’ll also answer some of the questions you ask us a lot. You can come back here for the official release today. You can find out more by looking at the Social Security and SSI payout schedules.
Social Security confirmed the official announcement of the new COLA increase
The SSA figures out the COLA by looking at changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers. This is a monthly report from the Bureau of Labour Statistics that shows how prices for goods and services change on average.
The COLA is affected by other things besides inflation, but its main goal is to raise benefits for people who get Social Security or Supplemental Security Income. The new COLA will go into force in January 2025 after this percentage increase is made public.
There are other government benefits that will be affected by the COLA besides Social Security. The COLA is used to figure out payments for Medicare, Social Security Disability Insurance, Supplemental Security Income, and the Supplemental Nutrition Assistance Program (which includes food stamps and other programs). It does this by taking inflation into account.
The Social Security Administration usually reports the COLA increase for the next year around the middle of October. The new rate goes into effect in January of that year. Because of this, everyone thinks that the Social Security Administration will announce the new COLA raise today, October 10th.
How does lower inflation impact the cost of living adjustment (COLA)?
The Senior Citizens League, a neutral group that speaks up for seniors, said that the COLA would be less than 3.2% in 2025 compared to 2024. The League’s most current prediction is for a COLA of 2.5%, which is a little less than the 2.57% it predicted in August. If the COLA in 2025 is 2.5%, monthly benefit payments will go up by $48. This will bring the usual monthly total to $1,968.
The League also says that the most recent prediction is lower than those made in earlier years, but 2.5% is still within the average of 2.6% over the last 20 years. Beneficiaries might not have liked a 2.5% rise, but there’s more to the story than that. A lower COLA means that inflation is going down, which could mean that some of the things you need every day cost less.
Also, keep in mind that the $48 rise is just the average monthly benefit; the exact amount you get will depend on a number of factors. Say you get your retirement benefit at age 70 instead of age 62, when you can get it as soon as you qualify, you will get a bigger cheque every month. They keep an eye on the change every year because the yearly COLA increase is meant to help seniors keep up with rising costs.
In the past few years, the annual COLA increase has been as high as 8.7%. However, some people say that this is not enough to keep up with inflation. In a study by the Senior Citizens League, 69% of people said that the cost of food and housing was the main reason their household expenses went up last year, which was more than the COLA.
How much will be the new cost of living adjustment for 2025?
All people who get Social Security benefits need to know about news about their benefits because knowing the cost of living adjustment (COLA) is important for millions of Americans who depend on them. Because of this, we’d also like to let you know that the official COLA increase for 2025 was made public today.
The Bureau of Labour Statistics says that the official cost of living increase for next year will be 2.5%. This is the same amount that the Senior Citizens League (TSCL) says it will be. This is the exact percentage that was used to figure out how much retirees, survivors, disabled people, and SSI recipients will get in January 2025:
| Retirement benefits (Including 2.5% COLA) | Survivor benefits (Including 2.5% COLA) | SSDI benefits (Including 2.5% COLA) | SSI benefits (Including 2.5% COLA) |
| On average: $1,948
Age 62: $2,778 Age 67: $3,918 Age 70: $4,995 |
On average: $1,543
Individual: $1,817 2 Children: $3,744 |
On average: $1,575
Blind recipients: $2,655 Maximum payment: $3,918 |
On average: $715
Individuals: $967 Couples: $1,450 Essential person: $484 |