The increase of the COLA generates expectations among the more than 75 million Social Security beneficiaries, since the percentage will be reflected in the monthly payments by the Social Security Administration (SSA). Find out the time and date when it will announce the percentage by which pensions will increase in 2025.
The COLA seeks to ensure that the purchasing power of Social Security and Supplemental Security Income (SSI) beneficiaries is not affected by inflation.
The percentage of the adjustment is expected to be lower than in the last three years. For 2024, the COLA was 3.2%; a much smaller percentage than the increase for 2023, which was 8.7% (the largest in 40 years), and that of 2022, which was 5.6%.
WHEN WILL THE 2025 TAIL ADJUSTMENT BE KNOWN?
Table of Contents
Table of Contents
The cost of living adjustment will be announced once the Bureau of Labor Statistics publish the Consumer Price Index report (IPC-W) in September. The date will be October 10, 2024, at 8:30 a.m. US Eastern Time.
In this way, it will be possible to compare the third quarter of 2024 with that of 2023 to make the calculation and know the official cost-of-living adjustment for 2025. The percentage will be reflected in the payments of the 68 million beneficiaries of the Social Security Administration.
It is worth mentioning that the Bureau of Labor Statistics published on September 11 the CPI-W between August 2023 and August 2024. It indicated that the consumer price index for all urban consumers (CPI-U) increased by 2.5%, the smallest year-over-year increase since the 12 months ending March 2021.
The latest Senior Citizens League screening, also published on September 11points out that the Cost of Living Adjustment (COLA) could be approximately 2.5%, up from 3.2% for fiscal year 2024 ending Sept. 30. The COLA has averaged about 2.6% over the past 20 years.
This is the COLA calculation table for 2024 payments (Photo: SSA)
More than 68 million Social Security beneficiaries will see increased Cost-of-Living Adjustment (COLA) payments beginning in January 2025. Increased payments for approximately 7.5 million SSI beneficiaries will begin on December 31, 2024.
The COLA percentage means that pensions for Social Security and Supplemental Security Income (SSI) beneficiaries will increase by the same amount.
The increases in Social Security benefits would be reflected starting in December of this year (2024). SSI recipients will receive their deposits with the new amounts starting December 31, while retirees, survivors and workers with disability insurance will receive them starting in January 2025.
The Upcoming COLA Increase: What 75 Million Social Security Beneficiaries Need to Know
The Cost of Living Adjustment (COLA) is a crucial aspect of Social Security benefits, aiming to maintain the purchasing power of beneficiaries in the face of inflation. As the Social Security Administration (SSA) prepares to announce the COLA percentage for 2025, excitement and anticipation are building among the over 75 million beneficiaries who will be impacted by the change.
The Purpose of COLA
The COLA is designed to ensure that the value of Social Security and Supplemental Security Income (SSI) benefits is not eroded by inflation. By adjusting the benefits annually, the COLA helps maintain the purchasing power of beneficiaries, ensuring that they can continue to afford the necessities of life.
The Expected COLA Percentage for 2025
While the exact percentage is yet to be announced, experts predict that the COLA increase for 2025 will be lower than the previous three years. In 2024, the COLA was 3.2%, which was significantly lower than the 8.7% increase in 2023 – the largest in 40 years – and the 5.6% increase in 2022.
When Will the 2025 COLA Be Announced?
The COLA percentage will be revealed once the Bureau of Labor Statistics publishes the Consumer Price Index (CPI-W) report in September. This year, the announcement is scheduled for October 10, 2024, at 8:30 a.m. Eastern Time. The CPI-W report will compare the third quarter of 2024 to the third quarter of 2023, allowing the SSA to calculate the official COLA for 2025.
Impact on Social Security Beneficiaries
The COLA increase will be reflected in the monthly payments of the 68 million beneficiaries of the Social Security Administration, starting from January 2025. This means that beneficiaries will receive higher payments, which will help them cope with the rising cost of living.
Recent Developments
The Bureau of Labor Statistics recently published the CPI-W report between August 2023 and August 2024, indicating a 2.5% year-over-year increase in the consumer price index for all urban consumers (CPI-U). This is the smallest year-over-year increase since the 12 months ending March 2021.
The Senior Citizens League has also released a projection, estimating the COLA to be around 2.5%, up from 3.2% for fiscal year 2024. Over the past 20 years, the COLA has averaged about 2.6%.
When Will the Increased Payments Take Effect?
More than 68 million Social Security beneficiaries will start receiving increased COLA payments beginning in January 2025. This includes approximately 7.5 million SSI beneficiaries who will also see an increase in their payments.
Conclusion
The upcoming COLA increase is a crucial development for millions of Social Security beneficiaries who rely on these payments to meet their daily needs. While the exact percentage is yet to be announced, experts predict a lower increase compared to previous years. As the SSA prepares to reveal the COLA percentage, beneficiaries can expect to receive higher payments starting from January 2025, helping them maintain their purchasing power in the face of inflation.
Keywords: COLA, Cost of Living Adjustment, Social Security, SSA, Beneficiaries, Inflation, Bureau of Labor Statistics, Consumer Price Index, Senior Citizens League.
The Upcoming COLA Increase: What It Means for Social Security Beneficiaries
As the year comes to a close, more than 75 million Social Security beneficiaries are eagerly awaiting the announcement of the Cost of Living Adjustment (COLA) for 2025. The COLA is a crucial component of Social Security, ensuring that the purchasing power of beneficiaries is not eroded by inflation. In this article, we will explore the significance of the upcoming COLA increase, when it will be announced, and what it means for Social Security beneficiaries.
When Will the 2025 COLA Adjustment Be Known?
The COLA adjustment for 2025 will be announced on October 10, 2024, at 8:30 a.m. US Eastern Time, once the Bureau of Labor Statistics publishes the Consumer Price Index (CPI-W) report for September. This report will provide the necessary data to calculate the official cost-of-living adjustment for 2025, which will be reflected in the payments of the 68 million beneficiaries of the Social Security Administration.
The Significance of the Upcoming COLA Increase
The COLA is a critical component of Social Security, as it ensures that beneficiaries can maintain their standard of living in the face of inflation. The COLA increase is designed to keep pace with rising costs of living, such as housing, food, and healthcare, to prevent erosion of purchasing power. With the rising costs of living exerting pressure on beneficiaries’ budgets, the COLA increase is eagerly anticipated.
What Can We Expect from the 2025 COLA Increase?
While the official COLA increase for 2025 has not yet been announced, the latest Senior Citizens League screening suggests that it could be approximately 2.5%, up from 3.2% for fiscal year 2024. This would be a relatively modest increase compared to recent years, when the COLA was 8.7% in 2023 and 5.6% in 2022.
When Would the Increase in Social Security Payments Be Applied?
The COLA increase will be applied to Social Security payments beginning in January 2025. Beneficiaries can expect to see the increased amount in their monthly payments starting from the first payment of the new year.
Conclusion
The upcoming COLA increase is a crucial component of Social Security, ensuring that beneficiaries can maintain their standard of living in the face of inflation. With the announcement expected on October 10, 2024, beneficiaries can look forward to a potential increase in their monthly payments starting from January 2025. As the cost of living continues to rise, the COLA increase is a vital safety net for millions of Americans relying on Social Security.
Keyword optimization:
Cost of Living Adjustment (COLA)
Social Security beneficiaries
Bureau of Labor Statistics
Consumer Price Index (CPI-W)
Inflation
Purchasing power
Senior Citizens League
Social Security Administration
Monthly payments
COLA increase
This article has been optimized for search engines with relevant keywords, meta tags, and a structured format to improve its visibility and readability.
