Millions of Americans get money from Social Security when they retire. People who file their taxes after age 70 will get credits for when they filed. The 2.5% COLA raise in 2025 will also help people over 70 years old and other retirees.
With the 2025 COLA, prices will go up by 2.5%. This may not seem like a big number, but it is higher than many other cost of living increases in the US in the past. A lot of seniors do think that the CPI-W isn’t as accurate as a survey made just for seniors.
Social Security payment amounts after COLA of 2.5%
The government will add 2.5% to retirement payments. For every $100 that a 70-year-old receiver gets, all of their monthly payments will go up by $2.50.
Those amounts add up to about $25 for every $1,000 you get from Social Security. This means that the COLA will add $50 to a $2,000 payment. After January 2025, people who got $2,000 in 2024 will get $2,050.
You can see that a 70-year-old will get more extra money from SSA the longer their payment is. That is, if you get a $3,000 payment every month, you will get $3,075 after the 2025 COLA boost.
How much will retirement benefits increase after COLA of 2.5% for a 70-year-old getting a check worth $4,000?
To get a $4,000 Social Security payment, you will need to change your cheque or direct deposit to $4,100. It’s great that your retirement benefits are going up by $100.
This means that after the 2.5% COLA raise in 2025, you will get an extra $1,200 a year. While some American workers may have made a lot of money, most don’t make that much.
The most money will be given to people in 2024 and 2025 who:
- filed for Social Security at 70
- worked in jobs covered by SSA
- worked for at least 35 years
- earned the taxable maximum for a minimum of 35 years too
The taxable maximum refers to the contribution and benefit base. As of 2024, it is $168,600 and it will also increase in 2025 thanks to COLA.