According to Marca, If you’re receiving Social Security Disability Insurance (SSDI), Supplemental Security Income (SSI), or related benefits, you may be wondering about an upcoming payment boost. Good news: the Social Security Administration (SSA) has announced a 2.5% increase in benefits for 2025, thanks to the annual Cost of Living Adjustment (COLA). Let’s explore what this means for you.
Details of the 2.5% COLA Increase
The 2.5% COLA increase for 2025 will apply to all Social Security beneficiaries, including those receiving retirement, disability, and SSI benefits. This adjustment is designed to help beneficiaries keep pace with rising living costs, particularly during inflationary periods.
While the increase may appear modest compared to previous years—2023 saw an impressive 8.7% increase—it’s still a welcomed boost for many. On average, monthly benefits will rise by approximately $48, amounting to around $600 more over the year.
The Impact on Seniors and Other Beneficiaries
Shannon Benton, Executive Director of the Senior Citizens League (TSCL), emphasized the reliance of seniors on these benefits. “Our research shows that 67% of seniors depend on Social Security for more than half of their income, and 62% worry that their retirement income won’t even cover essentials like groceries and medical bills,” Benton stated. This concern extends beyond seniors; individuals on SSDI and SSI also depend heavily on these adjustments to manage daily expenses.
Also read: Social Security Releases Important Information for 2025 Medicare Open Enrollment
Understanding COLA Calculations
It’s important to note that the COLA is determined based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). This index measures changes in the prices of goods and services that affect average consumers. However, some experts, including those at TSCL, have voiced concerns that the CPI-W may not accurately reflect the higher costs that seniors and disabled individuals often face, particularly rising medical expenses. A recent survey found that 72% of older Americans believe Congress should consider revising how COLA is calculated to better represent these challenges.
What to Expect
If you receive SSDI or SSI, expect to receive a notice from the SSA by December 2024, detailing the amount of your increased benefits starting in January. You can also check your My Social Security account for this information online.
Conclusion
While the 2.5% increase may not be significant, it is still a positive development for the 72.5 million Americans receiving Social Security benefits. Stay tuned for further updates, and make sure to prepare for this slight enhancement in your monthly checks.
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