In an official press release, the Social Security Administration told people who receive Social Security about the steps they need to take to get the higher checks that will start going out in January 2025.
The SSA will raise Social Security checks by 2.5% in 2025 because of the cost of living adjustment (COLA), which was confirmed on October 10th. Some people may already know this.
As an example, retirement benefits will go up by $50 on average, while SSI and disability benefits will go up by $38 and $17, respectively. Find out more about the official press release here if you are currently eligible for SSI or RSDI benefits.
Key points you need to follow to collect the Social Security check increase in 2025
In the past ten years, the cost-of-living adjustment has been 2.6% on average. It was only 3.2% in 2024, which was much lower than the 8.7% increase in 2023. About 72 million beneficiaries will get a 2.5% COLA starting in January 2025.
Also, 7.5 million people who get SSI will get higher payments starting December 31, 2024, because January 1 is a holiday and that is when the SSA usually sends these payments.
Martin O’Malley, the commissioner of Social Security, says that as inflation starts to drop, tens of millions of Americans will get more money from Social Security and SSI in 2025.
Every year in January, there are some extra changes that happen because average salaries go up. This means that in 2025, the taxable maximum, which is another name for the most money that will be taxed, will rise from $168,600 to $176,100.
This year, people who get the COLA notice will get a new, updated version for the first time. This makes it easier for people to find the information they need. The simplified COLA notice is now only one page long and written in simple, customized English.
It tells the person when they will get their new benefit amount and how much they will be able to spend after any deductions.
If you have a personal My Social Security account, you can look at your COLA notice online.
This is faster, easier, and safer than getting a letter in the mail. When the COLA notice shows up in a user’s Message Center, they can set up text or email alerts to know about it right away.
Also, Medicare’s official website will have information about changes coming in 2025. Also, beginning at the end of November, Social Security recipients who are enrolled in Medicare will be able to see their 2025 benefit amount in their Social Security Message Center.
People who have not agreed to get web-based messages will get their COLA notice in the mail in December. Last but not least, do not forget that the Social Security Act sets the cost of living adjustment (COLA).
It is linked to the annual rise in the Consumer Price Index for Urban Wage Earners and Clerical Workers set by the Social Security Act. The Bureau of Labor Statistics in the Department of Labor pulls this index together.
Two important things beneficiaries should be aware of regarding COLA in 2025
You might be eligible for a pension if your employer does not offer monthly benefits.
Please let the SSA know right away if you start getting retirement or disability benefits for work that you did not pay Social Security taxes on. You must also tell them about any changes you make to the pension you get for your spouse or surviving spouse.
Events in your life may affect your monthly benefits.
Some events in your life may change your ability to get benefits. Please let us know if you get married, divorced, or if your spouse or ex-spouse dies.
You need to let the Social Security Administration know if your child or stepchild no longer lives with you but is still getting benefits on your behalf.
