The Social Security check is a very important element of United States society. There are many Americans who get only one payment of this benefit each month, which makes them depend on it in most cases. But it is true that sometimes this type of payment may not be enough and fall behind due to inflation.
Price inflation can increase dramatically each year, leaving retirees in the United States who collect Social Security alone without a budget to meet the costs. That’s why the cost-of-living adjustment (COLA) is so important. Thanks to the COLA all retirees get a slightly larger check each year than in the previous year.
When will we have the Social Security COLA of 2025?
In this year 2024 we have seen a COLA of 3.2%, bringing Social Security retirement payments to $4,873. Meanwhile, Disability payments can have a benefit of up to $3,822. These are the maximum amounts after applying the COLA, so it doesn’t mean that all Americans will have access to such large checks.
However, in this year 2024 we will have the announcement of the new COLA for 2025. Regardless of how much we are going to have, the COLA will not begin to take effect until the first of next year’s payments. So, the COLA announcement will be made, but we will have to wait a little bit to be able to have that extra money in the next few months.
The final announcement of this 2025 COLA will not take place until the last days of October. Every year the exact day is different and we don’t have an official date yet, but it is always announced in October. The reason for this is that the COLA is calculated through the CPI-W for the months of July, August and September. After looking at inflation on those days, the United States Government calculates the COLA and announces it.
What will the Social Security COLA be in 2025?
While it is true that it is still too early to determine what the 2025 COLA will be, we can anticipate that it will likely follow the trend of recent years, aligning closely with the previous year’s adjustments. However, it is highly unlikely that we will see an increase as substantial as the nearly 9% rise observed in 2023, which was a record high driven by exceptional inflation rates. Such a significant increase is rare and typically only occurs under extraordinary economic conditions.
What is certain, though, is that we will have to wait a bit longer to determine if we will actually see another large increase or if it will be more modest. The final COLA percentage will be influenced by factors such as inflation trends, economic forecasts, and government policy decisions, which are still evolving. Therefore, it is essential to stay informed about developments related to COLA and Social Security checks. At the end of the day, many Americans, particularly retirees and those on fixed incomes, depend directly on these checks for their financial stability. The annual COLA adjustment plays a crucial role in ensuring that Social Security benefits maintain their purchasing power in the face of rising living costs.
