MJP –
As October approaches, millions of retirees eagerly await the official announcement of the cost-of-living adjustment (COLA), many of whom rely on Social Security checks to keep pace with inflation and cover their living expenses in retirement.
The Consumer Price Index (CPI) is essential to calculating the COLA increase because it depends on inflation.
CPIs are generally based on an objective benchmark that represents an approximation of an additional amount needed over time for a typical individual or household to sustain its quality of life. However, most retirees worry that the anticipated increases will not be sufficient to offset rising inflation because of the projections that have been made public over the years.
The exact amount of money to be increased in retirees’ paychecks
Although the Social Security Administration’s official estimate is not expected until October, the Senior Citizens League has projected a 2.63% COLA for 2025. If this annual percentage is to become effective, retirees will receive an average increase of $49, while those who receive the maximum Social Security payment of $4,873 will receive $128 thanks to the COLA increase.
However, according to a survey by the Senior Citizens League, two-thirds of retirees say their monthly expenses will increase by 10% between 2022 and 2023.
Additionally, it should be mentioned that recipients of the Supplemental Security Income (SSI) program will get an extra payment of roughly US$ 45 per month in a manner akin to this.
Conversely, survivors’ benefits recipients will get a monthly boost of almost US$ 44. This means that even with the annual increase, overall Social Security beneficiaries might not have enough money to cover the rising inflation and costs. The rising cost of living surpasses the COLA, causing concern for millions of beneficiaries, particularly elderly individuals.
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Mary Johnson, a policy analyst for Social Security and Medicare, states that the COLA is not keeping up with the actual expenses retirees are facing, indicating that they may struggle to afford the rising costs. As a result, retirement healthcare expenditures have risen more quickly than total inflation, reducing the effect of COLA.
How will Social Security checks increase for retirees if the 2.63% COLA becomes effective?
All beneficiaries’ Social Security checks will increase by the same amount in January 2025 if the October official cost of living adjustment (COLA) of 2.63% is accepted. Just keep in mind that this is only an estimate, and at the end of the year, the official percentage can change.
| Retirement benefits | Retirees’ paychecks | 2.63% COLA increase |
| On average | $1,900 | $1,950 |
| Age 62 | $2,710 | $2,781 |
| Age 67 | $3,822 | $3,923 |
| Age 70 | $4,873 | $5,001 |
| Survivor benefits | Social Security checks | 2.63% COLA increase |
| On average | $1,505 | $1,545 |
| Individual | $1,773 | $1,820 |
| 2 Children | $3,653 | $3,749 |
| Disability benefits | Social Security checks | 2.63% COLA increase |
| On average | $1,537 | $1,577 |
| Blind recipients | $2,590 | $2,658 |
| Maximum payment | $3,822 | $3,923 |
| SSI benefits | Social Security checks | 2.63% COLA increase |
| On average | $698 | $716 |
| Individuals | $943 | $968 |
| Couples | $1,415 | $1,452 |
| Essential person | $472 | $484 |
Could remarrying affect Social Security beneficiaries’ benefits?
Remarrying could have an impact on your benefits if you get any of the following, or anticipate getting any of them:
- Supplemental Security Income (SSI) payments: Your SSI eligibility and payment amount may change based on your new spouse’s income and resources. If both spouses receive SSI, the payment may change from a single rate to a couple’s rate. Report your marriage immediately to avoid an overpayment.
- Surviving spouse or divorced surviving spouse benefits: If you remarry before age 50, you are not eligible for survivor or disability benefits unless the marriage ends in divorce or annulment.
- If you remarry between the ages of 50 and 59: If you were disabled and unable to work when you remarried after age 50, you can get benefits as a disabled surviving spouse. If you remarry before age 60 and the marriage ends, you may be able to collect benefits on your former deceased spouse’s record.
