There is news that brings us some peace in the midst of so much turmoil. Millions of Americans rely on Social Security payments to survive.
And for them, this is far more than a help; it is what allows them to keep their heads above water when the economy appears to be in turmoil. With the start of the new year, the beneficiaries’ monthly checks will increase!
However, this change is more than just numbers; it provides significant relief to those who rely solely on this income. We will tell you everything you need to know to get off to a good start in 2025. How will this increase be applied, and what are the implications for the beneficiaries? Let us find out together.
Annual cost of living adjustment (COLA)
The so-called COLA is expected to be 2.5% in 2025. Don’t worry, we’ll explain it better. This adjustment is a small increase to each Social Security payment that is intended to offset the effects of inflation.
That is, each Social Security beneficiary will not notice in their pocket as prices continue to rise, ensuring that everyone’s purchasing power is protected by this small increase.
Monthly payments will vary between $715 and $4,995, depending on the circumstances of each beneficiary. This change ensures that the most vulnerable people can meet their basic needs without having to make significant efforts.
What does the COLA represent?
As previously stated, the COLA is intended to ensure that users are unaware that the prices of basic goods and services (such as food, transportation, and healthcare) continue to rise due to inflationary pressures. So Social Security adds this small percentage to mitigate the effects.
What is the calendar for 2025?
2025 will bring with it a new schedule, and beginning January 3, 2025, beneficiaries will begin to receive payments adjusted according to the new COLA percentage, and, as we all know, the calendar divides the dates of delivery of benefits based on the beneficiaries’ dates of birth, which are as follows:
- Born between the 1st and the 10th: Payment on January 8th.
- Born between the 11th and the 20th: Payment on January 15th.
- Born between the 21st and the 31st: Payment on January 22nd.
In terms of retirement benefits, the amounts will be the following:
General average: $1,948 ($48 increase).
- Age 62: $2,778 ($68 increase).
- Age 67: $3,918 ($96 increase).
- Age 70: $4,995 ($122 increase).
For surviving beneficiaries, the benefits will be as follows:
- Overall average: $1,543 ($38 increase).
- Individual: $1,817 ($44 increase).
- With two children: $3,744 ($91 increase).
For disabled beneficiaries, the benefits will also be as follows:
- Overall average: $1,575 ($38 increase).
- Blind beneficiaries: $2,655 ($65 increase).
- Maximum payment: $3,918 ($96 increase).
Is there anything new for 2025?
Yes, Congress is still debating various provisions that could jeopardize the future of Social Security, such as the Social Security Justice Act, a project that could end the injustices suffered by former public sector workers (whose benefits were significantly reduced despite having worked the necessary years and paid the necessary taxes to the Administration).
The measure itself has received widespread bipartisan support, as those who suffer are not to blame for anything; however, it has shifted the focus of the debate to the future of Social Security, as this change could add nearly $200 billion to the federal deficit in the coming years, causing the solvency of the Social Security trust funds to run out much sooner than expected (2033).
We will have to wait and see what measures are proposed to alleviate these effects, such as raising taxes or lowering pensions. 2025 has many tasks ahead of it, and we’ve only just begun!
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