2.5% increase in Social Security checks

The Social Security Administration (SSA) Adjusts beneficiaries' annual Social Security checks to reflect inflation. On October 10, 2024, the 2025 cost of living adjustment (COLA) will be announced. The Social Security increase for 2024 was 3.2%, but economists expect a smaller adjustment next year due to a slowdown in inflation. In 2024, about 68 million Americans will receive monthly Social Security checks totaling about $1.5 trillion. The Bureau of Labor Statistics calculates the Consumer Price Index for Urban Wage Earners and Office Workers (CPI-W), which is based on typical costs for housing, food, and transportation. This index is tied to the COLA. The annual COLA is based on the CPI-W for the third quarter of the previous year. In October 2024, the 2025 COLA will be announced based on data collected between July and September.

How much extra money will retirees make with the increase in new Social Security checks?

A Gallup poll conducted in April found that more than a third of retirees view their checks as an important source of income. Since 1975, the SSA has adjusted benefits at the beginning of each calendar year to keep pace with inflation. This annual increase is based on changes in the Consumer Price Index for Urban Wage Earners and Office Workers (CPI-W). The COLA has been rising recently due to the post-pandemic rise in inflation, as described here:

• 2021: 1.3%
• 2022: 5.9%
• 2023: 8.7%
• 2024: 3.2%

The benefits can be constant, but usually are not. In 2009, 2010 and 2015, the COLA was just 0% since its inception in 1975. The changes are intended to make it easier for seniors to keep up with rising costs. The increase in Consumer Price Index since 2021 is 24.6%. If the 2025 adjustment settles at 2.5%, SSA benefits will be almost the same, with a cumulative increase of 23.4%. Additionally, it is important to note that the 2025 COLA will be announced by the Social Security Administration on October 10, 2024.

The Boston College Center for Retirement Research and the nonprofit Senior Citizens League both predict a 2.5% increase. If true, the 3.2% increase will be replaced by a more gradual increase in 2024. According to the United States Bureau of Labor Statistics, inflation has continued to fall from its post-pandemic highs. The August 2024 Consumer Price Index report said average prices rose 2.5% since August 2023, the smallest 12-month increase since February 2021.

A COLA of 2.5% is the monthly average for retired workers Social Security Income would increase by $48 to $1,966, for an average check value of $1,966. In December, Social Security recipients will receive an official letter in the mail detailing their 2025 benefits. However, starting in mid-November, you will be able to access this information online through your mySocialSecurity account. If you would like to know how much all beneficiaries will earn with the new increase in Social Security checks, please read below:

Please note that these monthly payment amounts were calculated using the Senior Citizens League's 2.5 percent projection and may vary depending on the final outcome COLA percentage announced. next week.