According to Vibes.okdiario, Once you’ve applied for Social Security retirement benefits, there’s generally little to worry about in terms of managing the federal program. However, there are a few important instances where you need to update your information with the Social Security Administration (SSA), such as changes in address, bank account, or marital status. Additionally, you can withdraw your application within one year if you decide to return to work.
Aside from these updates, the main responsibility retirees have is ensuring they pay any required taxes on their benefits. Many retirees won’t need to worry about this if their income falls below the threshold for federal taxes, and they reside in a state that doesn’t tax Social Security benefits.
Key Action for October 10, 2024
However, there’s one more important task that all retirees should take care of in relation to their Social Security retirement benefits. Mark your calendar for October 10, 2024, as this date will provide critical information about the future of your benefits.
The good news is that this task is incredibly simple. All you need to do is visit the Social Security Administration (SSA) website and navigate to the press releases section. You can find this page by visiting: https://www.ssa.gov/news/press/releases/.
On this page, you will find important updates, including the much-anticipated Social Security Cost-of-Living Adjustment (COLA) for 2025. The SSA will publish a press release on this day detailing the percentage increase in Social Security benefits that will begin in January 2025.
What to Expect from the Press Release
The press release will provide specific information on how much your benefits will increase in 2025. In addition to revealing the COLA percentage, the SSA typically announces the average dollar amount by which benefits will rise in the upcoming year. This will give retirees a clearer understanding of what to expect in their monthly payments.
Other Changes to Look For
Historically, these COLA press releases have also included details about other significant changes taking effect in the coming year, such as updates to the Social Security payroll tax maximum. It’s worth keeping an eye out for any such additional announcements in the press release on October 10.
Also read: No SSI Payments in October: Next Payment Scheduled for November 1, 2024
How is the Social Security COLA Calculated?
The Bureau of Labor Statistics (BLS) plays a critical role in determining the COLA. The BLS releases its inflation data for September on October 10, and this is used to calculate the COLA. Specifically, Social Security relies on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) to make this determination.
To calculate the COLA, Social Security compares the average CPI-W for the third quarter of 2024 with that of the third quarter of 2023. The percentage increase between the two averages, rounded to the nearest tenth of 1%, becomes the official COLA for 2025.
Predicted COLA for 2025
Though the exact figure won’t be released until October 10, early predictions suggest that the 2025 COLA will be around 2.5%, according to data from Senior Citizens League. This would result in an average increase of about $48 per month for retirees.
While this is a smaller increase compared to the 3.2% COLA predicted for 2024 and the 8.7% boost from the previous year, it’s in line with the long-term average benefits increase of around 2.6% over the past two decades.
Mark Your Calendar: October 10, 2024
Make sure to check the SSA website on October 10, 2024 to find out the specific increase in your benefits. If you miss the announcement, don’t worry—the SSA will send out notifications by mail starting in December to inform individuals about their new benefit amounts for the coming year.
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