All beneficiaries, such as retirees, survivors, disabled people, and people who get Supplemental Security Income (SSI), were recently sent an official notice by the Social Security Administration about the new 2025 increase.
The Bureau of Labor Statistics told us on October 10 that the new cost of living adjustment (COLA) for 2025 was 2.5%, which was in line with the Senior Citizens League‘s helpful predictions.
The increase is less than the current 3.4% for 2024, but beneficiaries will still get an increase every year, which will help them keep up with inflation and pay their monthly bills.
People who get benefits should know that the lower COLA increase is because inflation has gone down, which is good for everyone and the economy as a whole.
Social Security notice about the new cost of living adjustment (COLA) is official
More than 72 million people in the United States, including those who get Supplemental Security Income (SSI), will get the 2.5% cost of living adjustment from the SSA starting in January 2025.
Due to the fact that January 1 is a holiday, more than 7 million SSI recipients will start getting their bigger checks on December 31, 2024. For the coming year, there will be other changes that beneficiaries should think about, such as:
- The taxable minimum will increase to $176,100 according to the federal agency, which is also known as the highest income subject to be taxed.
- Employees under full retirement age (FRA) will have their earnings cap raised to $23,400. Every $2 earned over $23,400 will result in a $1 deduction from benefits from the SSA.
- For those who reach FRA in 2025, the earnings cap will rise to $62,160. For every $3 earned over $62,160 until the worker reaches “full” retirement age, the SSA will take $1 out of benefits.
- For the entire year, employees who are 67 or older have no earnings cap.
Where can recipients get more information about their COLA notice?
As of December 2024, Social Security recipients will get their COLA notices through their accounts, specifically through the Message Center. Also, this year is the first time that most Social Security recipients will get a revised and improved COLA Notice.
This notice makes it easier for them to find the information they need. There is now a shorter COLA Notice that is just one page long.
It has simple, personalized language and the exact dates and cash amounts of a person’s new benefit amount and any deductions. It is safe and useful to get COLA alerts online and save the message for later.
You can also choose to get available notices online instead of by mail when you log in or create a My Social Security account.
Make sure you choose whether you want to receive notifications by email, text message, or both when your COLA notice is ready to be seen in your Message Center. To not forget, Social Security benefits are given away for free.
A good business or government agency will not ask for your personal information or accept gift cards or wire transfers as payment in advance.
Do not give out personal information, click on dangerous links, or open malicious attachments to avoid falling for scams like phone calls and online “phishing.”
2 key points beneficiaries need to know about COLA for 2025
If your job does not provide monthly payments, you may receive a pension
Please keep in mind that people who get Social Security benefits must tell the agency right away if they start getting money for work that was not paid for.
Also, if you get benefits for your spouse or a surviving spouse, you have to tell them about any changes to your current pension.
Life events could impact your Social Security benefits
Certain events in your life may affect your ability to get benefits. If you get married, divorced, or if your spouse or ex-spouse dies, please let us know.
It is important to let Social Security know about a child or stepchild who no longer lives with you but is still getting benefits on your record.
