On October 10, the Social Security Administration (SSA) stated that retirement retirees will get an average increase of around $50 per month. Without a doubt, this is a far lower gain than the 2023 or 2022 COLAs.
However, if you live on a limited budget, this will be a big rise. Do not forget that those who make the highest payments will receive more extra money. For example, if your retirement check is worth $100, you receive an additional $2.5 per month. However, if the amount is $1,000, you will receive an additional $25.
Social Security will send a higher-than-average raise to these retirees
The greatest rise will be for individuals who are eligible for the highest benefit payment in 2024 and 2025. For your information, the highest benefit payment is $4,873 in 2024.
After the 2025 COLA hike, it will be $5,108. This will be the greatest rise after the COLA, as they will receive $235 more than in 2024. Another group of retirees who will benefit significantly will be those who qualify for $3,822 in 2024 at Full Retirement Age.
By 2025, their monthly payment will amount to $4,018. As a result, qualified retirees will receive an additional $196 over the current year.
Other large boosts for some Social Security recipients
For example, if your monthly payout is $4,000, you will receive $100 once the 2025 COLA increase takes effect. If you earn $4,500 in 2024, you will receive $4,612.5 after the raise. If you earn $5,000, you will receive $5,125 in 2025.
Do not forget that the bigger your Social Security contribution, the more money you will receive in 2025. To find out the actual amount of your monthly payment, go to my Social Security account.
Most retirees will receive a letter with the precise amount after COLA, but if you do not receive it from Social Security, verify it online. As you can see, the 2.5% COLA increase varies depending on whether you receive a small or large payout.
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