Majority of the Senior Citizens are looking for the new cost-of-living adjustment (COLA) for Social Security in approaching year’s keen costings for 2025 which is still further in the future.
The 2025 COLA will be 2.5. The announcement became possible two months ago thanks to the official’s social security administration. The increase is expected to benefit more than seventy two point five million people in the entire nation. Special provision is also to be made by the social security so that by January of 2025 the beneficiaries will be receiving an increase in their monthly checks around 50 dollars.
”I wish to be absolutely clear that there will be an increase in Social Security and SSI for the second half of fiscal year 2025 and therefore putting in the hands of millions more resources at a time when inflation rate is declining,” stated Martin O’Malley, director of the social security administration.
Speaking in January 2025, he also commented that approximately 68 million of social security beneficiaries are out of this 2.5 percent, no less. 7.5 million SSI recipients will start making their January 2025 payments as of the 31st December, 2024. Some people are entitled to receive SSI payments in addition to Social Security payments, it is essential to note that.
This cost-of-living adjustment does fall slightly below the cost of living adjustment increase that was offered in the year 2024 and stood at 3.2 percent, but it is very similar to the average figure of 2.6% which has been witnessed over the recent period.
In addition to the increase, beneficiaries of Social Security will also notice an improved layout of their COLA announcements. The new announcement is only a single page, succinctly detailing when payments will be made, what the updated benefits will be, and what is going to be withheld, if anything.
In addition, 2025 will also see an increase in the Social security wage tax rates. There will be a change in earnings over the limit for the year 2025 with the cap going from $168,600 in 2024 to $176,100 in 2025. It is because the taxable normal earnings is increasing.
| Year | COLA Increase | Social Security Tax Threshold | Expected Monthly Increase |
|---|---|---|---|
| 2024 | 3.2% | $168,600 | Approx. $50 |
| 2025 | 2.5% | $176,100 | Approx. $50 |
FAQs On Big change to Social Security COLA in 2025!
Q. What is the estimated 2025 Social Security COLA?
A. Due to a cost-of-living adjustment, Social Security beneficiaries will receive higher monthly benefits in 2025 as the number is adjusted by 2.5%.
Q. The COLA increase in 2025 starts when?
A. There will be higher benefits available to Social Security beneficiaries from January 2025. As for SSI users, the actual increase begins at the end of December 31, 2024.
Q. How does 2025 COLA look like against the previous year 2024?
A. The 2025 COLA is set at 2.5% which is lower than the 3.2% increase of 2024 but nevertheless close to the statistical mean of 2.6% that it aims to achieve.