With October so close, many sectors are guessing what the Cost of Living Adjustment (COLA) will be in 2025. The United States Government will announce what the increase in Social Security benefits will be in the middle of next month, so the day is getting closer and closer when we will know the exact amount.
One of the groups that knows best about calculating the annual Cost of Living Adjustment (COLA) or getting an approximation is undoubtedly The Senior Citizens League. This group provides an approximate figure each month as inflation goes up or down. In this regard, thanks to the information offered by this group we can calculate what our Social Security check will be as of January 2025.
What will the Cost of Living Adjustment (COLA) be in 2025?
According to calculations by The Senior Citizens League, the U.S. Government will increase Social Security benefits by 2.57% with the 2025 Cost of Living Adjustment (COLA). This will mean that we will not have as large an increase as in previous years, but there is justification for everything.
If we take into account that inflation has not been as large as in 2023 or 2022, it is normal that the Cost of Living Adjustment (COLA) will not reach a figure as large as in previous years, where we have even broken records. In 2023 we obtained an increase of almost 9% and in this year 2024 the increase has been more than 3%.
However, for some citizens, this increase may be too small. That may be so if we look only at the increase in a single month, but we should keep in mind that during the year we will get the Cost of Living Adjustment (COLA) increase, so we will not only get that extra money in one month, but during the whole year.
So, if we finally get this COLA, the retirement checks will reach figures never seen before. These would be the maximum checks according to categories:
- Retiree at age 70: $4,998 per month.
- Retiree at age 67: $3,920 per month.
- Retired at age 62: $2,779 per month.
- Disability Pensioner: $3,920 per month.
Remember that this calculation is not official, but it will be approximate. Also, we are talking about what the maximum payment will be by adding the Cost of Living Adjustment (COLA) 2025, but the rest of the payments, without needing to be the maximum, will also increase.
Just adding 2.57% to the check you are currently collecting will give you an approximate figure of what your Social Security retirement check will be as of January 2025.