Good news for you if you are one of the many millions of Americans who depend on Social Security payments. From this October, the Social Security payments will be increased due to the annual Cost of Living Adjustment (COLA).
This increase is intended to compensate for increasing costs in order to retain the purchasing power of your benefits. First, let us find out why this increase is occurring, how much you can receive, and what impact it will have on your finances.
How much is the increase for this year?
From October of this year, Social Security recipients will start receiving their first payments that include the 2025 COLA hike. For 2025, the COLA has been set at 2.5%, so your monthly benefits will increase slightly. Although this is lower than the 3.2% growth projected for 2024, it allows the beneficiaries to meet their costs and cope with inflation.
For instance, if the current average monthly benefit sits at $1,800, the 2.5% raise will mean that you will get an additional $45. This means that from this October your new monthly total will be around $1,845. Although the increase might not seem huge, every little bit can help cover the cost of essentials like groceries, healthcare, or utilities.
Who will receive the increased payment?
Every social security beneficiary will be subjected to the COLA increase starting from October. This includes retired workers, disabled persons who are under the SSDI, and survivors of a deceased family member. Even if you’re just starting to receive Social Security benefits, you’ll see this increase in your payments moving forward.
SSI beneficiaries will also experience an increase in their benefits. It is a program that assists people with little income and who are elderly, blind, or disabled. The increase will be reflected in their payments starting next month, providing additional financial support to those who need it most.
Why is this increase important for beneficiaries?
COLA is not just about some additional dollars that Social Security recipients will receive each month; it is a means of providing them with some relief from the increasing costs of living. In the long run, even low levels of inflation can dent the real value of your benefits and limit your ability to meet routine costs. This adjustment means that your purchasing power will not be affected and therefore you will be able to meet your day to day needs.
How to check your new benefit amount
So, if you want to know how much your payment is going to be, here are several steps you can take. The Social Security Administration will be sending notices in the mail to all beneficiaries with information about the exact new payment amount. This information is usually released in late December, but you can also access it on the Internet.
You can access your “My Social Security” account on the SSA website to check your new benefit amount and how the COLA change impacts your payment. This is the quickest and most convenient method to verify your new benefit amount and if you have not registered for an online account, its high time you do so.
This COLA increase will come as a relief to millions of Social Security recipients all over the United States. It makes sure that your benefits are sufficient to sustain the increasing costs of living.
