In 2025 all Social Security benefits, as well as other types of checks in the United States, will increase thanks to the Cost of Living Adjustment (COLA). This mechanism is responsible for keeping Social Security retirement checks from being too low after inflation continues to increase.
And while it is true that in 2024 we are not having, at the moment, the highest inflation in recent years, it is also true that inflation continues to increase. So we should keep in mind that anything related to an increase in Social Security checks through the Cost of Living Adjustment (COLA) is good news, even if it’s not the biggest increase in recent years.
What will the COLA be in 2025?
It is still too early to determine what the exact COLA will be for next year 2025. The United States Government has not yet given an official figure for this increase in Social Security benefits, but all indications are that we may already have an approximation as to the checks we will get in the coming year.
If the Americans at The Senior Citizens League group are correct, the Cost of Living Adjustment (COLA) next year 2025 will reach 2.5%, bringing all retirement benefits to record highs. This is good news that will help Americans have a better monthly check for their payments.
If this is finally the case, the increase will not reach that of this year 2024, which was greater than 3%, but it will be equivalent to the current inflation, which is a little lower than in previous years. Be that as it may, we still have to wait until we have an official figure from the government.
When will we know the Cost of Living Adjustment (COLA) 2025?
The exact day when the United States Government will announce the 2025 Cost of Living Adjustment (COLA) is not yet official, but it is likely that we will know the final amount around October 15. As soon as we know the official amount, we will be able to calculate what our benefit will be as of January 2025.
At the moment we only have to wait to know the exact figure, but we will not have to wait too long, since in just a couple of weeks we will have the official data and we will be able to calculate the exact amount of the increase in benefits.
What will be the maximum retirement with the COLA 2025?
If we take into account that in 2024 the maximum Social Security payment is $4,873, adding 2.5% of the possible COLA 2025 we would get around $4,994. However, that’s just a guess, since we don’t yet have an exact figure either way.
Be that as it may, Social Security benefit payments will increase next year 2025, so we should pay attention to what the final COLA will be and from there we will be able to calculate 100% what the amount we will get will be.
Also, it is good to remember that the COLA also affects Supplemental Security Income checks, as well as other benefits such as SNAP Food Stamps payments, so we will also get extra money in those monthly benefits.