2025 Social Security COLA increase: What we know
FILE-In this photo illustration, a Social Security card sits alongside checks from the U.S. Treasury on October 14, 2021 in Washington, D.C. (Photo illustration by Kevin Dietsch/Getty Images)
Social Security benefits will increase in 2025 with an update on how much claimants can receive scheduled for this fall.
Here is what you need to know.
What is the 2025 Social Security COLA increase projected to be?
The federal government is expected to release official numbers on the increase in October.
Although the actual amount added to recipients' monthly checks won’t be known until the fall, Social Security statistics from 2024 suggest that beneficiaries could see an increase between 2.7% and 3.2%.
RELATED: Social Security check may be bigger next year. Here's why
The 3.2% benefit increase in 2024 raised the average social security check amount by $59 per month.
Some experts are offering preliminary projections of what they believe the increase for beneficiaries will be in 2025. The Senior Citizens League, an advocacy group for older Americans, is predicting that the increase will be 2.6%.
What is COLA and how are the increases determined?
An annual cost-of-living adjustment or COLA is based on the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter, July through September, of last year. A cost-of-living adjustment was determined for the third quarter of the current year, according to the Social Security Administration.
RELATED: Social Security recipients to receive 3.2% cost-of-living increase in 2024
Who is eligible for the COLA increase?
People receiving benefits through the Social Security Administration program are eligible for COLA. These groups include individuals receiving retirement benefits, survivor benefits, supplemental security income, and social security disability insurance.
The Source
Information for this story was provided by the Social Security Administration, FOX Business, The Senior Citizens League, and Newsweek. This story was reported from Washington, D.C.