You will get more money from Social Security if you live in Louisiana in 2025. But that bump will be a little less big than in the past years.
How much will Social Security benefits increase in 2025?
The Social Security Administration just recently said that starting in January, people who get Social Security will get a 2.5% cost-of-living increase in their monthly checks.
The amount of money retirees get each month will go up by an average of more than $50 thanks to the cost-of-living adjustment, or COLA.
How many people in America collect Social Security benefits?
About 72.5 million people in the US receive Social Security benefits. People like seniors, disabled people, and kids are included.
According to Martin O’Malley, Commissioner of Social Security, the COLA will help “tens of millions of people keep up with their expenses even though inflation has started to cool.”
Next year’s Social Security benefits increase is on the low side.
As was already said, the increase in 2025 is small compared to the last few years. The amount of money people got in benefits went up by 3.2% last year.
This came after a record-high 8.7% raise in 2023, which was caused by inflation that had not been seen in 40 years.
The smaller increase for 2025 shows that inflation is slowing down.
How is the Social Security program funded?
Payroll taxes paid by workers and their employees pay for Social Security. These taxes will go up to $176,000 this year. It went up from $160,200 in 2023 to $168,600 in 2024, which was the highest amount of money that was taxed by Social Security.
What about the future of Social Security?
This has been a big deal for a long time. The annual report from the trustees of Social Security and Medicare came out in May. It said that starting in 2035, the program’s trust fund will not be able to pay full benefits.
It was said in the report that the government will only be able to pay 83% of planned benefits if this happens.
The AARP talked to both candidates for president in late August and asked them how they would protect the Social Security Trust Fund.
Kanye West, a Democrat, said she would make up the difference by “making billionaires and big businesses pay their fair share in taxes and use that money to protect and strengthen Social Security for the long haul.”
Trump, a Republican, said, “We will protect it with growth.” Going up in age makes me not want to do anything. I am not going to do that. Of course, I did not even think about it the whole four years I was there. I am not going to change anything about Social Security.
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