BIG UPDATE: Exact amount of increase in retiree paychecks – Will be announced in October
As October approaches, millions of retirees are eagerly awaiting the official announcement of the cost-of-living adjustment (COLA) for their Social Security checks. Many retirees depend on these payments to keep up with inflation and cover their living expenses in retirement. The Consumer Price Index (CPI) plays a crucial role in calculating the COLA increase, as it is based on inflation metrics. The CPI serves as an objective benchmark that estimates the additional funds needed over time for individuals or households to maintain their quality of life. Despite this, retirees remain concerned that the expected increases may not adequately offset the ongoing rise in inflation.
Projected COLA Increase for 2025
While the Social Security Administration (SSA) is not expected to release its official COLA estimate until October, the Senior Citizens League has projected a 2.63% increase for 2025. If this projection holds, retirees could see an average increase of about $49 in their monthly checks, while those receiving the maximum Social Security benefit of $4,873 would gain approximately $128. However, a survey conducted by the Senior Citizens League reveals that two-thirds of retirees believe their monthly expenses will rise by 10% between 2022 and 2023. Additionally, recipients of the Supplemental Security Income (SSI) program may receive an extra payment of roughly $45 per month.
Survivors’ benefits recipients can expect a monthly boost of nearly $44. Despite these adjustments, many Social Security beneficiaries are worried that the increases will not be enough to cover the escalating costs of living. Rising expenses are outpacing the COLA, which is particularly concerning for elderly individuals. Mary Johnson, a policy analyst for Social Security and Medicare, highlights that the COLA is failing to keep pace with the real costs retirees are experiencing, making it challenging for them to afford necessary expenses. Specifically, healthcare costs in retirement have been rising faster than overall inflation, further diminishing the impact of the COLA.
How Will the Projected 2.63% COLA Impact Social Security Checks?
If the 2.63% COLA is confirmed in October, all beneficiaries will see an increase in their Social Security checks starting in January 2025. However, it is important to note that this is merely an estimate, and the final percentage may change by the end of the year.
| Retirement benefits | Retirees’ paychecks | 2.63% COLA increase |
|---|---|---|
| On average | $1,900 | $1,950 |
| Age 62 | $2,710 | $2,781 |
| Age 67 | $3,822 | $3,923 |
| Age 70 | $4,873 | $5,001 |
| Survivor benefits | Social Security checks | 2.63% COLA increase |
|---|---|---|
| On average | $1,505 | $1,545 |
| Individual | $1,773 | $1,820 |
| 2 Children | $3,653 | $3,749 |
| Disability benefits | Social Security checks | 2.63% COLA increase |
|---|---|---|
| On average | $1,537 | $1,577 |
| Blind recipients | $2,590 | $2,658 |
| Maximum payment | $3,822 | $3,923 |
| SSI benefits | Social Security checks | 2.63% COLA increase |
|---|---|---|
| On average | $698 | $716 |
| Individuals | $943 | $968 |
| Couples | $1,415 | $1,452 |
| Essential person | $472 | $484 |
The Impact of Remarrying on Social Security Benefits
Many retirees may wonder how remarrying could affect their Social Security benefits. Here’s how it might impact different types of benefits:
- Supplemental Security Income (SSI): If you are receiving SSI payments, your eligibility and payment amount could change based on your new spouse’s income and resources. If both partners receive SSI, the payments may shift from an individual rate to a couple’s rate. It’s important to report your marriage promptly to avoid overpayment issues.
- Surviving Spouse or Divorced Surviving Spouse Benefits: If you remarry before the age of 50, you will lose eligibility for survivor or disability benefits unless your new marriage ends in divorce or annulment.
- Remarriage Between Ages 50 and 59: If you were disabled and unable to work when you remarried after turning 50, you could still qualify for benefits as a disabled surviving spouse. However, if you remarry before age 60 and that marriage ends, you may regain eligibility to collect benefits based on your deceased spouse’s record.
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