COLA Increase 2025 Release Date: All You Need to Know about COLA increase for next year – Payment Week

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Social Security’s cost-of-living adjustment (COLA) for 2024 was 3.2%, it was a slight disappointment after reaching a 40-year high of 8.7% for 2023. As we can see that inflation is now again on the rise, it has been particularly difficult for seniors who rely significantly on their benefits. In an attempt to find some comfort, many are now focusing on the 2025 COLA, that is scheduled to be announced on October 10, 2024.

The third-quarter inflation data has not  been released till now is the basis for Social Security’s cost-of-living increases, or COLAs. As per COLA Increase 2025 Release Date, on October 10, the government of USA will make the official COLA 2025 available. According to current COLA forecasts, it will be less than the COLA in 2024, although events in the following few months could alter this.

COLA Increase 2025 Release Date

As per the latest news, COLA Increase 2025 Release Date is October 10, 2024. The COLA cannot be disclosed until inflation data is ready, though, because it is based on third-quarter inflation.  An increase of $59 per month was made to the average benefit by the Social Security 3.2% 2024 cost-of-living adjustment (COLA). Senior Citizens League (TSCL) data indicates that a considerable number of seniors reported a monthly increase in expenses of over $185 in 2023. Even though it won’t happen until sometime in the future, people who are in need of additional assistance are already paying close attention to it.

What is Social Security COLA?

The Social Security Administration boosts benefits to recipients in order to help them keep up with inflation. These increases are known as COLAs, or Social Security COLA, Applicable to more than 71 million beneficiaries, the COLA is derived from the CPI-W shared by the BLS. COLAs are under review for a number of reasons, as experts claim that these resources are insufficient to keep up with the rising expenditures of retirees’ actual expenses. On the contrary, some advocate for lowering COLAs in order to save Social Security costs, claiming that recipients may make up the difference by making fewer expensive purchases.

COLA Increase 2025 Release Date: All You Need to Know about COLA increase for next year

New COLA announced on October 10, 2024

The official announcement of the COLA will not be there until October since the government requires inflation data for the months of July, August, and September in order to calculate it. This year, on October 10, we will get the official Social Security COLA 2025. The December 2024 benefit is when the modification will take effect.

How Social Security COLA is calculated for 2025

The authority compares the average CPI-W from the 3rd quarter of the previous year and the ongoing year to know the Social Security COLA. The COLA, or the increase in Social Security benefits starting in December, is the percentage increase from year to year. The CPI-W is the basis for adjustment of Social Security COLAs. How much consumer products and services cost over time is monitored by a consumer price index. Families who get at least half of their income from hourly or administrative work are the target market for this particular index, that focuses on categories of goods and services. Rising CPI-W values are indicative of rising inflation. 

Latest Social Security COLA Projection for 2025

Social Security COLA latest projections for 2025 are not expected to be extremely high. Remember that the percentages were roughly 5.9% and 8.7%, respectively. Social Security beneficiaries receive larger benefits in relation to inflation. However, consumers will also have to pay more for other items like food and services. The SCL predicts a 3% increase in Social Security’s COLA in 2025.

Since the beginning of the new year, inflation has increased and it could be continue and it suggests that starting on December 31st, retirees, SSDI, and SSI recipients might receive an approximate 3% rise. You will get $1,030, for instance, if your payment is $1,000. It may not seem like much money, but it will be useful. Remember that $360 will be the entire amount in a year. In 2025, you might receive $2,060 a month if you receive USD 2,000 a month in 2024.

Average Payment Increase after Social Security COLA Increase 2025

  • In 2024, your average Social Security retirement payment might increase to $1,970 from $1,913. Actually, that would only be an additional USD 57 a month, less than the $59 that retirees received in 2024.
  • If there is a 3% increase, claimants of Social Security Disability Insurance, that currently pays an average of roughly $1,537, might receive USD 1,583. In 2025, SSI recipients may additionally receive a 3% COLA and sill, SSI benefits are smaller.
  • Any COLA Increase 2025 will appear excessively low as a result. If they get an average check in 2024, they might get an extra $20 a month, roughly. As a result, rather than USD 699, the average SSI payment will be approximately $719.

Ellie Dautner, a finance postgraduate from the University of San Diego, is an expert journalist in fintech and mobile payment technology. She specializes in writing about fintech, mobile payments, startup funding, and acquisitions.

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