COLA Increase Details The Social Security Administration (SSA) has announced a 2.5% Cost-of-Living Adjustment (COLA) for 2025. This adjustment aims to help benefits keep pace with inflation.
Effective Date of Increased Payments Beneficiaries will start receiving the increased payments in January 2025. For Supplemental Security Income (SSI) recipients, the increase will be effective for payments made for January 2025.
Impact on Average Benefits The average monthly benefit for all retired workers will rise from $1,927 to $1,976, reflecting the 2.5% increase. This adjustment provides an additional $49 per month to the average beneficiary.
Adjustments to Taxable Earnings The maximum amount of earnings subject to Social Security tax will increase from $168,600 to $176,100 in 2025. This change ensures that higher earners contribute appropriately to the program.
SSI Federal Payment Standard Changes For SSI recipients, the federal payment standard will increase to $967 per month for individuals and $1,450 per month for couples. This adjustment aims to assist those with limited income and resources.
Importance of Updating Personal Information Beneficiaries are encouraged to ensure their contact and direct deposit information is current to receive timely payments. Keeping information up to date with the SSA helps prevent delays and ensures accurate benefit distribution.