MJP –
Social Security recipients may see a cost-of-living adjustment (COLA) that is approximately 1% lower in 2025 compared to the current rate. The Senior Citizens League has lowered its original forecast of a 2.63% increase to 2.57%, as stated in a statement dated August 14.
The COLA for 2024 was set at 3.2%. It would derail what some industry insiders called a “historic” COLA prediction if the revised projection pans out. Though “historic” may be a good descriptor, it doesn’t guarantee that the modification will help seniors who are already struggling to make ends meet.
Changes in the trend of COLAs
According to several experts on Social Security cost-of-living adjustments (COLAs), projections reveal that the 2025 COLA will usher in a change not witnessed in nearly three decades. Just so you know, for the fourth year running, the COLA figure would be higher than 2.6%.
The Consistent Growth of COLA
The rate in 2022 was 5.9%, which was quite impressive. The Cost-of-Living Adjustment (COLA) reached an unprecedented 8.7 percent by 2023. Keeping with the pattern of significant increases, the figure settled at 3.2% this year.
A Guide to Social Security Benefits
In case you were wondering, the official start date for withdrawing Social Security money is 62 years of age. This year marks the beginning of your eligibility for initial payments if you were born in 1962.
Crucial Things to Think About Before Making an Early Claim
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However, before you call, remember that taking the money early will reduce your total monthly Social Security payout. Before selecting this choice, it is essential to consider all of the possible outcomes.
Monthly Social Security Benefit Payment
A typical Social Security check, as of July 2024, is around $918 per month, according to SSA. The amount of your check can go up or down based on your filing age.
Not everyone can afford to hold off until they are 70 years old to petition for the 24% additional.
Your yearly Social Security benefits can be substantially increased if you are ready to wait a little longer.
Getting the Most Out of Your Social Security Expenses
New information indicates that you are eligible for an 8% increase over the average amount, which means that your total monthly benefit can reach $1,924.60 when you reach the age of 68.
Generating More Money After You Turn 69
Postponing payment until age 69 entitles you to an extra 8% boost, for a grand total of $2,067.12 a month. An astounding 16% more than the norm is contained in this number.
The Greatest Gain After 70 and Beyond
Your monthly benefit will reach a significant $2,209.68 after you reach the age of 70 and beyond, thanks to a cap of 24% over the norm.
