Goodbye to cost of living adjustment in 2024: US Government announces changes to checks starting2025

The U.S. Social Security Administration has announced a 2.5% increase in benefits for 2025, affecting over 72.5 million Americans ¹. This cost-of-living adjustment (COLA) will begin with benefits payable to nearly 68 million Social Security beneficiaries in January 2025. Additionally, increased payments to nearly 7.5 million Supplemental Security Income (SSI) recipients will start on December 31, 2024.

Some key changes to note:

- *Taxable Maximum*: The maximum amount of earnings subject to the Social Security tax will increase to $176,100 ¹.
- *Earnings Limit*: The earnings limit for workers younger than full retirement age will increase to $23,400 ¹.
- *Full Retirement Age*: The earnings limit for people reaching full retirement age in 2025 will increase to $62,160 ¹.

To learn more about the 2025 Social Security benefits and COLA, you can visit the Social Security Administration's website or contact them directly ¹.
The Cost-of-Living Adjustment (COLA) for 2025 has been announced by the Social Security Administration (SSA), confirming a 2.5% increase in monthly benefits. While this adjustment is meant to help beneficiaries keep up with inflation, many are disappointed, feeling the increase falls short of covering rising living expenses.

For retirees, Social Security benefits are a crucial source of income, providing around 30% of their earnings. However, the modest COLA increase leaves many concerned about their financial stability. Here’s an overview of the COLA for 2025, its implications, and strategies to secure your retirement.

Cost of Living Information (COLA) for 2025
The 2025 COLA is set at 2.5%, slightly below the 20-year average of 2.6%.
The new increase will take effect starting January 1, 2025.
A retiree receiving the average monthly benefit of $1,922 will see a $48 monthly increase, or approximately $577 annually.