Social Security Check Get An Above-Average Increase In 2025: Know Details

The Social Security Administration (SSA) will announce the 2025 Cost-of-Living Adjustment (COLA) on October 10, 2024.

While the exact number remains speculative, early estimates suggest the increase might be lower compared to the past few years, potentially leading to disappointment among retirees who are already battling rising living expenses.

However, not all beneficiaries will experience the same dollar-value increase, even though the percentage adjustment will apply equally across the board. Here’s how to determine if your Social Security check qualifies for an above-average boost in 2025.

What Is the 2025 Social Security COLA?

COLA increases are tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures inflation. Based on current estimates from The Senior Citizens League, the 2025 COLA is projected to be around 2.5%.

For the average retired worker receiving $1,920 per month as of August 2024, this means their Social Security check could increase by approximately $48 per month, bringing their new payment to $1,968 starting in January 2025.

Will You Get an Above-Average Increase?

Whether you receive an above-average boost depends on your current Social Security benefits. If your monthly check is higher than the average benefit of $1,920, you’ll likely see a more significant dollar increase, even though the percentage remains the same.

For example:

• If your monthly check is $2,500, a 2.5% increase will result in an additional $62.50 per month.
• For someone receiving $3,000, the 2.5% COLA would boost their payment by $75 monthly.

How to Calculate Your 2025 Social Security Check

To get a rough idea of how much your 2025 Social Security check will be:

1. Take your current monthly benefit.
2. Multiply it by 2.5% (or 0.025).

For instance, if you currently receive $2,000 per month, your estimated 2025 check would be:

• $2,000 x 0.025 = $50 increase.
• Your new payment will be $2,050 per month.

Keep in mind that these are estimates, and the official COLA percentage will be revealed on October 10.

Is the 2025 COLA Enough?

The estimated 2.5% increase may not be enough to keep up with rising living costs, especially for those already feeling the impact of inflation on food, housing, and healthcare.

Unfortunately, the way the government calculates COLAs—based on the CPI-W—has long been criticized for not fully reflecting the cost increases experienced by seniors.

What If COLA Doesn’t Cover Your Expenses?

If you find that the 2025 COLA falls short of covering your rising expenses, it’s essential to look into other government programs designed to assist with basic needs, including:

• Food Assistance: Programs like SNAP help cover grocery costs.
• Housing Assistance: Provides support for affordable housing options.
• Utility Assistance: Offers help to manage utility bills through programs like LIHEAP.
• Healthcare Assistance: Covers medical expenses through programs like Medicaid or Medicare Savings Programs.

Start Planning for 2025

Once the 2025 COLA is confirmed, you’ll want to start planning your budget for the new year. Consider all your income sources—Social Security, personal savings, and other benefits—and calculate how much you’ll need to cover rising expenses.

By preparing in advance, you can make adjustments before the new year begins, ensuring your financial stability for 2025 and beyond.

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