The annual benefit increase for seniors is called the Cost of Living Adjustment (COLA). The COLA makes United States Social Security beneficiaries enough money to be able to afford inflation, or at least that is the goal.
Each year seniors get a different COLA because the adjustment is made by calculating the increase in the CPI-W in the third quarter of the year. Since each year inflation is different it is normal to think that we get a different COLA.
In some years Social Security beneficiaries get a very large COLA, as it was in the previous year 2023 with 8.7%, and in other years the increase is smaller. In the latter group we will find ourselves in the year 2025, as we will see a COLA of only 2.5%.
While it is true that the 2.5% COLA may seem small in reality it is sufficient based on the inflation increase we have seen this year. Also, if we look at the dollar amount we will receive in the next full year we can see that seniors will not get a small increase, quite the opposite.
How much will Social Security Increase for Seniors in 2024?
The monthly Social Security check for both seniors and disability beneficiaries will increase by 2.5%. This means that retirees over age 62 will get a new figure in 2025, but for sure that figure will be higher.
If we take into account this monthly increase, over the whole year this group of retirees will get a total of $500. This figure is approximate, so we should keep in mind that each citizen will get their corresponding increase depending on the check they currently collect.
Regardless of whether we have a maximum check or an average payout, the Social Security Administration will always pay us a payment each year. Next year 2025 seniors will see a smaller increase than in 2024, but it will also be an increase.
What will the maximum Social Security check be next year?
Starting in 2025 we will see an increase in the checks, as we have already discussed. And this increase depends directly on the check we have right now. So if we have a higher check the increase will be higher. Since the COLA makes a proportional increase, each beneficiary will see a different payment.
Seniors with a maximum check of $4,873 will see a check of $5,180 in 2025. This means that citizens with a benefit are getting more than $5,000 per month. It is certainly a good figure for them.
On the other hand, the Supplemental Security Income Social Security payment will also have an increase. This increase will go from the maximum $943 to the maximum $967 in the next year 2025. But that does not imply that everyone will get that maximum. As with Social Security retirement payments, SSI payments will increase proportionately by 2.5%.