Social Security to Reveal 2025 COLA Soon: Anticipated Adjustments and Impacts

2025 COLA for Social Security: Announcement Expected Within Days

The Social Security Administration (SSA) will announce the 2025 cost-of-living adjustment (COLA) within days. This update will impact approximately 70 million Americans who rely on Social Security benefits.

When Will the 2025 COLA Be Announced?

The official announcement is expected on October 10, 2024. This date coincides with the release of the September inflation report by the Bureau of Labor Statistics, which is crucial for calculating the COLA.

Projected Increase for 2025

Experts predict a 2.5% increase in Social Security benefits for 2025. This is a decrease from the 3.2% adjustment seen in 2024, reflecting a slowdown in inflation rates.

Will 2025 Social Security COLA increases be enough for retirees? No it won’t! They might as well keep it! This is a slap in the face to seniors who rely on it to buy groceries, pay bills, & utilities! 2.5% is lower than last years increase & it wasn’t enough then!

— Stella Jobe (@jobe67_jobe) October 2, 2024

Impact on Monthly Benefits

For the average retiree, this adjustment translates to an increase of about $48 per month, raising the typical benefit check to approximately $1,955. However, the exact amount may vary depending on individual circumstances and Medicare Part B premiums.

COLA for Social Security in 2025

According to the Senior Citizens League (TSCL), an advocacy group for older Americans, the 2025 cost-of-living adjustment (COLA) for Social Security is projected to be around 2.5%. This would be the smallest COLA since 2021 when seniors received a 1.3% adjustment due to low inflation during the pandemic.

In contrast, due to surging inflation, the COLAs for 2022 and 2023 were significantly higher at 5.9% and 8.7%, respectively. For the current year, seniors received a 3.2% COLA.

Great news! #SocialSecurity reached a milestone this month and released more than $250 million in underpayments to #SSI recipients. Learn more about our progress with more timely release of underpayments: https://t.co/F87j0DgP1T

— Social Security (@SocialSecurity) October 1, 2024

With the average Social Security check for retirees at $1,907 in 2024, a 2.5% COLA increase for 2025 would raise the typical benefit check by about $48 per month, bringing the total to approximately $1,955 per payment, according to CBSNews.com.

Veterans’ Compensation Cost-of-Living Adjustment Act of 2024

This month, Congress enacted the Veterans’ Compensation Cost-of-Living Adjustment Act of 2024. This new law mandates that the Department of Veterans Affairs (VA) adjust veterans’ benefits in line with the cost-of-living increases applied to Social Security payments.

“Boosting our veterans’ hard-earned benefits to keep pace with the cost of living is a necessary cost of war,” stated Senator Jon Tester, a Democrat from Montana and co-sponsor of the bill.

Current rate of inflation

Inflation has seriously cooled since reaching a 40-year high of 9.1% in June 2022. Thanks to a series of rate hikes by the Federal Reserve, inflation has been driven down to 2.5% annually as of August, marking its lowest level in three years.