FILE – In this photo illustration, a Social Security card lies next to U.S. Treasury Department checks on October 14, 2021 in Washington, DC (Photo Illustration by Kevin Dietsch/Getty Images)
Social security benefits will increase in 2025. An update of the level of benefits is planned for this autumn.
Here’s what you need to know.
What is the expected increase in Social Security’s COLA in 2025?
The federal government is expected to publish official figures on the increase in October.
Although the actual amount added to recipients’ monthly checks will not be known until the fall, Social Security statistics show 2024 indicate that benefit recipients can expect an increase of between 2.7% and 3.2%.
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The 3.2% benefit increase in 2024 will increase the average Social Security check amount by $59 per month.
Some experts are making preliminary forecasts as to how much they expect benefit recipients to receive to increase in 2025. The Senior Leaguean advocacy group for older Americans, predicts an increase of 2.6%.
What is COLA and how are the increases determined?
An annual cost of living adjustment, or COLA, is based on the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter (July through September) of the previous year. A cost of living adjustment has been set for the third quarter of the current year, according to the Social Security Administration.
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Who is eligible for the COLA increase?
Individuals who receive benefits from the Social Security Administration program are eligible for COLA. These groups include those who receive retirement benefits, survivor benefits, Supplemental Social Security benefits, and Social Security Disability benefits.
The source
Information for this story was provided by the Social Security Administration, FOX Business, The Senior Citizens League and Newsweek. This story was reported from Washington, DC.
