Social Security COLA increase for 2025: When will you receive new payments?

Social Security recipients may be wondering as 2024 comes to an end: When will my check include the new cost of living adjustment (COLA)?

Following months of uncertainty and inflation, Social Security revealed in October that the 2025 COLA will be 2.5%.

According to a written statement, that means that by January 2025 at the latest, more than 72.5 million people nationwide will get an increase of about $50 in their monthly Social Security check.

According to Social Security Commissioner Martin O. Malley, tens of millions of individuals will benefit from a rise in 2025 in Social Security benefits and SSI payments, which would help them keep up with spending even as inflation has begun to slow down.

Beginning in January 2025, a 2.5% cost-of-living adjustment (COLA) will be applied to over 68 million Social Security recipients. On December 31, 2024, roughly 7.5 million SSI recipients will start receiving higher payouts.The statement explained that some persons get both Social Security benefits and SSI [Social Security Income].

Although this percentage is less than the COLA for 2024, which was 3.2%, it is only slightly less than the average COLA update, which is approximately 2.6%.

Additionally, recipients will receive an updated and redesigned COLA notice that makes it simpler for clients to locate the information they use most. The streamlined COLA notice is now just one page long, contains precise dates and dollar amounts of the individual’s new benefit amount and any deductions, and is written in simple, personalized language.

Furthermore, the average salary that is subject to Social Security taxes will increase in 2025; if your 2025 income is less than or equal to $176,100, you will be liable for the tax. The tax-adjusted wage in 2024 was $168,600.

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