It sounds good that retirees will get an extra $50 a year in 2025. But this increase in Social Security for seniors, SSDI, and SSI is not nearly as big as was thought. In fact, COLAs are usually around 2.6%.
So, the COLA raise for people who get Social Security or SSI in 2025 is a little less than that. Just so you know, the COLA for 2024 was only 3.2%. People who were retired already didn’t think it was enough. Even if it was more than 2025. So, there’s no doubt that this boost makes a lot of people unhappy and frustrated.
How many people will get COLA in the different Social Security and Federal programs?
For instance, in 2024, about 7.5 million Americans depend on SSI income. All of these people will get a 2.5% COLA raise. Their normal amount is $698, so after the boost, it will be about $715.
In 2024, people who get SSI can get up to $943. In 2025, they will be able to get up to $966 because of the cost of living increase. There are 68 million Americans who get Social Security.
Social Security gives money to retirees and people who get SSDI. Do not forget about survivor benefits and spousal benefits, which are also ways to get these monthly checks. In 2025, retirees will get an extra $50 dollars, or an average of $1,970. People on SSDI will get an average of $1,577 after COLA.
Are there any other Social Security adjustments after the 2025 COLA?
In fact, the new taxable limit will also go up, and the base for contributions and benefits will also go up. It will be $176,100, up from $168,600, but it won’t start until January 2025.
In other words, the taxable limit has gone up by 4.45%. This taxable limit is important because in 2025, people who make more than $176,100 will no longer have to pay taxes.
If you work and get paid for 35 years, you may be able to get the most from Social Security if you file at age 70 and have jobs that are covered by the program. In 2025, SSA will send a letter to recipients that shows the new amount. Make an account on mySocialSecurity to see the COLA message online.