For people in the United States, the cost-of-living adjustment (COLA) is an important measure that affects their Social Security benefits and lets them account for yearly inflation.
This increase will be 2.5% in 2025, which means that millions of people, like retirees, people with disabilities, and people who get Supplemental Security Income (SSI), will get bigger checks.
The main goal of the COLA is to keep people who depend on these benefits able to buy things. The small increase may not seem like much, but it can make a big difference in the daily lives of those who benefit, especially when prices for basic goods and services are going up due to inflation.
For financial planning, it is important to know how these changes will affect each person’s payments. You can also get the most out of your Social Security check by looking into ways to increase it, even though the 2025 COLA has already been put in place.
Social Security Changes with the 2025 COLA
The 2025 COLA will take Social Security’s maximum payments to new levels. This increase is in response to the average increase in consumer prices over the past year, ensuring that beneficiaries can maintain their quality of life. Below is a breakdown of the new maximum amounts:
- Full retirement: Up to $4,018 per month, up from $3,822 in 2024.
- Disability retirement: Up to $4,018, also exceeding the $3,822 in 2024.
- Deferred retirement: Up to $5,180, a significant increase from $4,873 in 2024.
The payments that people will get starting in January 2025 will reflect this change. But it is important to keep in mind that not everyone will get the maximum amount. This depends on things like work history, years contributed, and total wages earned.
Also, people who get SSI will see their payments go up. For individuals, they will go from $943 per month to $967 per month, and for couples, they will go from $1,415 per month to $1,450 per month. People who depend on this support program will feel even better after these changes.
How do I increase my Social Security check?
Although the COLA represents an automatic adjustment, there are steps you can take to increase your Social Security check and ensure a higher income in retirement:
- Work for at least 35 years: Social Security calculates your benefits based on your 35 highest earning years. If you worked less time, zero-earning years will be included, which will lower the average.
- Delay your retirement: For each year you postpone the start of your benefits beyond full retirement age, your check will increase by up to 8% a year, reaching the maximum possible at age 70.
- Make sure you have a high salary: Increasing your annual income can raise your average salary and, therefore, your benefit amount.
It takes planning and dedication to put these strategies into action, but the long-term benefits can be big.
It is important to remember that for many retirees in the United States, Social Security payments are not their only source of income. Getting extra help with day-to-day costs can be possible by adding these benefits to other programs like SNAP or state benefits.
You can get the most out of Social Security in 2025 and beyond if you know about the COLA changes and use the right strategies.
That being said, it is important to note that the Cost of Living Adjustment is both a one-time and an annual increase. It is true that benefits are going up by a certain percentage, but this does not mean the same thing for every American.
The good thing is that we know ahead of time what the percentage will be for next year, which lets us get a rough idea of how much our Social Security benefit will be in 2025.
Read Also :- Social Security announces two changes to SSI for January 2025
