This week brings good news for retirees in the United States, as they will finally get to know the new this Thursday Social security check increase from cost of living adjustment (COLA). The Social Security Administration will release the 2025 cost of living adjustment on October 10, 2024. You’ll just have to guess what it might be until then. Based on current data, the COLA appears to be less than what program participants have seen in previous years.
For pensioners who are already suffering from growing expenses and limited pension income options, it’s disheartening. Still, it’s crucial to remember that each person experiences a slightly different increase in their check before you get too worried. Here’s how to predict whether your income will rise above average in the coming year.
Social Security will confirm the next check increase on Thursday
When the revised COLA takes effect, Social Security recipients’ benefits will increase by the same percentage. However, the dollar appreciation fluctuates as each person receives a different amount of benefits. From August 2024, the average monthly Social security benefit for retirees is $1,920. This means that you will earn a 2025 COLA above the cash value average if you are already receiving more than this amount.
The Senior Citizens League’s latest projections place the 2025 COLA at about 2.5%. This would result in an increase of $48 from the average payment of $1,920 to $1,968 per month. If your current Social Security check is higher than the average of $1,920, you should expect to receive an additional $48 or more each month as long as the COLA does not fall below this estimate. To get a rough idea of ​​the size of your 2025 checks, increase your existing checks by 2.5%. Keep in mind that this is just an approximation and the official figure will be released on October 10th.
What should retirees do if the COLA increase isn’t enough?
Chances are good that the 2025 COLA will not be sufficient to offset the cost-of-living increases experienced by some retirees in the past year. It is disheartening and many attribute the blame to the government’s initial COLA calculation method. Retirees will need to find alternative sources of income to supplement Social Security, as the government is the only entity that can change this. Although having personal savings is positive, many people do not have enough for retirement, forcing them to rely on other sources of income.
Returning to work, although not ideal, can guarantee a consistent monthly income. You can also freely resume your early retirement activities. Many retirees are looking for more flexible jobs that fit their hobbies. Your options can also be expanded with part-time and remote work. Remember that all you need to earn is enough money to increase your savings and Social benefits. In addition, you may be eligible for additional government assistance to help you pay for necessities such as housing, food, utilities, and medical care. However, if you think you might need them in 2025, it is preferable to apply as soon as possible because it takes time for the government to process these applications.
It’s important to note that the government takes time to process these applications, so if you think you might need them in 2025, it’s best to apply as soon as possible. If you haven’t done so before, you can start planning your budget for the coming year after Cost of Living Adjustment (COLA) for 2025 is published. Create a strategy before January to determine how much money you can withdraw from your savings and how much money you will get from other sources to cover your expenses.