For more than 72.5 million Americans, the 2025 COLA increase is a must. You might think that this 2.5% cost-of-living adjustment is not much, but it can really help people who are low-income. On top of that, you will get more money if you are eligible for a big Social Security payment.
The Social Security Administration confirmed that people who are retired will get an extra $50 a month on average. Of course, some retirees may get more money if they are eligible for a big payment in 2024. As an example, the biggest payment this year is $4,873, but in 2025 it will be $5,108. A huge increase in COLA worth $235.
Who will receive $50 extra after COLA and when?
You will get an extra $50 in your January payment if you are eligible for a monthly retirement benefit payment worth $2,000. In the event that your payment is $1,000, that is an extra $25. The possible dates of payment are January 3, 8, 15, or 22, 2025.
Your boost will be about $12.50 if your Social Security payment is only $500, though. As a result, you need a higher payment in order to get a higher amount.
Some older people who get a low retirement benefit may also be able to get SSI benefits. The 2025 COLA increase will also be given to people who get SSI. The new Max Amounts for Supplemental Security Income are $967 for single people and $1,450 for married couples.
Who will receive $100 extra from the 2025 COLA?
To get a $100 COLA increase in 2025, you need to get at least $4,000 in Social Security. Because of this, not many retired workers will be able to do it. You must have the following to get the biggest Social Security checks and direct deposits:
- worked for 35 years
- had jobs covered by Social Security
- earned the contribution and benefit base (taxable maximum)
- filed at the age of 70
Tax breaks will be given to people who file their taxes early. If you file at age 62, this could be up to 30% of your income. You can wait to file until you reach Full Retirement Age to get all of your benefits, or you can file at age 70 to get credits for years you didn’t file.
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