There have been rumours for months regarding the Social Security cost-of-living adjustment for the upcoming years. The Senior Citizens League’s most recent projection places the 2025 COLA at 2.5%, based on current inflation readings. However, depending on how inflation unfolds in September 2024, that figure may increase or decrease. Obtaining a formal COLA from the SSA is not the whole issue. It’s possible that if you receive Social Security benefits, you won’t truly know how much more you’ll be getting each month until Medicare releases the 2025 standard Part B price. This is due to the fact that seniors who are enrolled in both plans concurrently automatically have their Part B premiums deducted from their Social Security benefits. Therefore, even if you receive a raise as a result of an impending COLA, an increase in Medicare costs may unfortunately cancel it out. It was discovered during social security research that there may be Upcoming Social Security Changes Due To COLA 2025. Further, read this article to get into the details.
Upcoming Social Security Changes Due To COLA 2025
It could be wise for the more than 70 million Social Security claimants in the country to lower their projections for their benefits in 2025. Estimates issued indicate that retirees will have an average monthly rise of $48, or 2.5%. The Senior Citizens League, an advocacy organization for senior citizens, stated that it is now anticipated that the 2025 cost-of-living adjustment, which is based on the rate of inflation, will be less than the 2.57% estimate made last month. The revised estimate was released just hours after the government revealed that, despite continuing to decrease inflation, prices increased by 2.5% in the year ended in August. Since the SSA normally calculates the COLA for the next year in mid-October, the expected rise is not yet official. Research on social security revealed that Upcoming Social Security Changes Due To COLA 2025. A 2.5% increase would result in an average benefit of $1,968 per month, which would be included in the January benefit checks of the majority of claimants. A 2.5% boost would be less than the 3.2% increase that was granted in 2024, but it is still within the historical norm, which has been 2.6% on average over the previous 20 years. In 2010, 2011, 2016, and 2023, the COLA was as low as 0.0% and as high as 8.7%.
Social Security COLA Increase 2025
| Program Name | Social Security COLA Increase 2025 |
| Governing Body | Government of the USA |
| COLA Eligibility 2024 | Those who are elderly, disabled, or have modest incomes |
| Applicable in | The USA |
| Category | Finance |
| Official Website | www.ssa.gov |
Who Will Receive Payments for COLA Increase 2025?
One must keep receiving the COLA payments even after fulfilling the COLA Increase Eligibility 2025 conditions. If the applicant does not fulfil the qualifying standards outlined below, they will not be able to receive the COLA payments.
- Those who make less money.
- People with different abilities.
- Someone 65 years of age or older.
- Someone who is blind or whose kids struggle with their vision.
- Little ones, people with disabilities, or those with lower incomes.
Social Security Earnings-Test Limit 2025
- Seniors who work can supplement their monthly Social Security payments with income from their jobs.
- Additionally, you can earn any amount of money after reaching full retirement age without it harming your monthly benefits.
- There is an earnings-test ceiling, though, if you are working and collecting Social Security before you are of full retirement age.
- Your benefits will usually be withheld in part if you exceed that limit.
- The current earnings-test ceiling is $22,320, or $59,520 for individuals who will achieve full retirement age by the end of 2024 but have not yet attained it.
- Although these figures are anticipated to increase in 2025 under inflation, you should be aware of the particular cap that applies to you.
Rate of COLA Increase
The table below displays the COLA increase figures over the preceding five years.
| COLA Rate | Year |
| 2.80% | 2019 |
| 1.60% | 2020 |
| 1.30% | 2021 |
| 5.90% | 2022 |
| 8.70% | 2023 |
| 3.20% | 2024 |
| 2.5% | 2025 |
SSA Wage Limit 2024
- For Social Security tax purposes, a wage cap is implemented annually, wages over that cap are not subject to Social Security tax.
- The wage cap for 2019 is $168,600. However, in 2025, that figure is anticipated to rise to account for inflation and salary growth, just as the earnings-test limit.
- Higher earners should therefore get ready to lose a larger portion of their income.
- Should you believe that you fall into that group, you might want to consult with a tax expert to discuss ways to reduce your overall tax liability to the IRS.
Fact Check For Change in COLA 2025
- No formal determination has been made on the COLA adjustment that will apply to Social Security in 2025.
- October 2024 will see the Social Security Administration release the precise percentage rise.
- Benefits related to Social Security, such as Supplemental Security Income and some veterans’ benefits, will be impacted by any higher payments.
- The 2025 COLA adjustment will be formally announced by the SSA in October of 2024.
FAQs On Upcoming Social Security Changes Due To COLA 2025
Official signals suggest that COLA will not rise in 2025.
Go to www.ssa.gov and complete the application to submit it online.
Elderly or disabled people with little resources or income are also qualified.
