For retirees in the U.S. who depend on Social Security, staying ahead of key deadlines and updates is essential for financial planning. One such important date is November 20, 2024, when the Social Security Administration (SSA) encourages retirees to create a my Social Security account.
This step ensures beneficiaries can access their 2025 Cost-of-Living Adjustment (COLA) details and manage benefits more effectively.
2025 COLA: What Retirees Need to Know
The SSA has announced a 2.5% COLA for 2025, marking the smallest increase in four years. This adjustment reflects moderated inflation, providing a modest boost to benefits:
- Average Monthly Benefit (2024): $1,921
- Average Monthly Benefit (2025): $1,969
- Annual Income Increase: $576
Although the increase is smaller than in previous years, it helps retirees maintain purchasing power amidst rising costs. The actual amount each retiree receives depends on factors such as their earnings history and the age at which they started receiving benefits.
Why November 20 Matters
Retirees should create or log into their my Social Security account by November 20 to:
- Access 2025 COLA Notifications: View precise payment adjustments starting in early December.
- Plan Budgets for 2025: With details on January payments, retirees can forecast their income for the coming year.
Failing to act by this date could delay access to crucial benefit information, complicating financial planning.
Benefits of a my Social Security Account
The my Social Security portal simplifies the management of benefits, offering retirees several tools and features, including:
- Replacement Card Requests: Order a new Social Security card if needed.
- Tax Documentation: Access the 1099 form for tax filing.
- Application Status Tracking: Monitor progress for applications or appeals.
- Future Benefit Estimates: Calculate expected benefits if not yet retired.
- Secure Account Management: Update personal details and manage benefits safely.
Social Security’s Role in Retirement Income
Social Security provides critical financial support for most retirees. According to the SSA:
- 90% of people over 65 receive Social Security benefits.
- Benefits account for an average of 30% of retirees’ income, but for some, it’s significantly higher.
- 37% of men and 42% of women rely on Social Security for at least half their income.
- For 12% of men and 15% of women, Social Security constitutes nearly all their income.
Given this heavy reliance, even modest COLA increases can significantly impact retirees’ financial well-being.
Planning for the 2025 COLA
The 2.5% COLA increase may not match the record adjustments of previous years, but it ensures benefits remain aligned with inflation. Retirees should use this information to adjust their 2025 budgets, covering expenses or saving for unexpected needs.
Creating a my Social Security account by November 20 helps retirees stay informed, access benefit updates, and take control of their financial planning. By leveraging these tools, retirees can manage their income effectively and ensure a stable financial future.
