The Social Security Administration has said that before the end of the year, Social Security checks will be changed again. We are getting closer every day to the final number that will change Social Security and the people who get it.
Expectations about the COLA (cost of living adjustment) will be dashed next month. For now, though, it is a good idea to keep a close eye on things and get your wallet ready for the good or bad news. Continue reading to learn more.
Why is Social Security changing your checks again?
Social Security is a group of programs that help Americans stay out of poverty and take care of their basic needs when something unexpected or unavoidable happens. Since this is the goal, the money that each program gives must be enough to pay these bills.
The economy, on the other hand, is not a fixed system; it changes every day. To keep up with the changes and keep people’s purchasing power, something needs to be changed. One way to do this is to figure out and use an index called the COLA.
Every year, changes are made to make the process easier. These changes are made to account for changes in the economy and get ready for whatever might happen next.
How will the Social Security change be implemented?
The CPI-W (Consumer Price Index for Urban Wage Earners and Clerical Workers) average for July, August, and September of the previous year is used to figure out the COLA in October. We compare this number to the same calculation from the year before.
The COLA is the difference between the two. Once Social Security figures out the COLA, they use it to change things like how much each beneficiary gets and other values, like the income limits that decide who can apply for their programs or the credit values that are given based on how much you paid into Social Security. The COLA has a wide range of effects because of this.
How much will you increase your Social Security with this change?
The CPI-W (Consumer Price Index for Urban Wage Earners and Clerical Workers) average for July, August, and September of the previous year is used to figure out the COLA in October.
We compare this number to the same calculation from the year before. The COLA is the difference between the two. Once Social Security figures out the COLA, they use it to change things like how much each beneficiary gets and other values, like the income limits that decide who can apply for their programs or the credit values that are given based on how much you paid into Social Security. The COLA has a wide range of effects because of this.
Remember that the COLA is closely linked to the inflation rate. So, when inflation goes up, the economy’s purchasing power goes down too. This means that even if you have more money, you may not be able to buy as much.
It is important to keep in mind, though, that this is not a direct way to figure out the effect of the COLA. It is just a good guess. Here, we will show you the different outcomes that can come from this process, based on the programs that Social Security runs and the amounts for July 2024.
Old-Age
| Benefit | Current Amount | Estimated Amount with Predicted COLA 2025 |
| Average | $1,871.09 | $1,920 |
| Maximum on Age 62 | $2,710 | $2,781 |
| Maximum on Age 67 | $3,822 | $3,923 |
| Maximum on Age 70 | $4,873 | $5,001 |
Disability
| Benefit | Current Amount | Estimated Amount with Predicted COLA 2025 |
| Average | $1,401.3 | $1,438 |
| Maximum | $3,822 | $3,923 |
Survivors
| Benefit | Current Amount | Estimated Amount with Predicted COLA 2025 |
| Average | $1,509,5 | $1,549 |
SSI
| Benefit | Current Amount | Estimated Amount with Predicted COLA 2025 |
| Average | $695,84 | $714 |
| Individual | $943 | $968 |
| Couple | $1,415 | $1,452 |
| Essential Person | $472 | $497 |
