Social Security Alert Every Retiree Should Do This by November 20
According to Vibes.okdiario , For retirees who rely on Social Security in the United States, staying informed about important program updates and dates can be essential for managing finances. Each year, the Social Security Administration (SSA) makes adjustments to benefits and provides updates that help retirees plan ahead for the future. With 2024 coming to a close, it’s important to be aware of some key dates and changes, particularly for those preparing for their benefits in 2025.
2025 COLA Increase: A 2.5% Boost for Social Security Benefits
Every October, the SSA announces the cost-of-living adjustment (COLA), which aims to help retirees maintain their purchasing power in response to inflation. For 2025, the COLA increase has been set at 2.5%. While this marks the smallest increase in the past four years, it is still a welcome adjustment, especially as inflation moderated in 2024.
For example, the average monthly Social Security benefit will increase from $1,921 to around $1,969, translating to an annual benefit of $23,628. However, each retiree’s benefit amount will vary based on several factors, including when they started receiving benefits, how long they worked, and their lifetime earnings.
Why November 20 is Crucial for Retirees
November 20 is a significant date for Social Security recipients. The SSA recommends that all retirees create an account on their online portal, my Social Security, by this date. This free account allows users to manage and view all their benefit-related information, including important updates about COLA increases.
By setting up an account before November 20, retirees can access their 2025 COLA notification online, giving them an early look at how much their benefits will increase in the coming year. Once December arrives, beneficiaries will be able to check exactly how much more they will receive starting in January, making it easier to plan their budgets for the year ahead.
The Benefits of Having a my Social Security Account
Creating a my Social Security account offers numerous advantages for retirees. In addition to receiving notifications about COLA increases, this platform provides several other useful features, including:
- Requesting a replacement Social Security card
- Accessing the 1099 form for tax purposes
- Checking the status of any pending applications
- Estimating future benefits if they haven’t started yet
- Managing current benefits securely
This account streamlines the process of managing Social Security benefits, making it easier for retirees to stay updated and avoid potential delays in receiving important information.
The Role of Social Security in Retirees’ Income
For many retirees, Social Security is a vital source of income. According to SSA data, nearly 90% of Americans over 65 receive Social Security benefits. On average, these benefits make up about 30% of retirees’ total income, though for some individuals, they account for a significantly larger portion.
Approximately 37% of men and 42% of women receiving benefits rely on Social Security for at least half of their income. For others, it provides nearly all of their income, covering up to 90% of their earnings for about 12% of men and 15% of women.
Given these statistics, each year’s COLA adjustment is crucial for retirees, as it directly impacts their ability to meet financial needs and maintain their standard of living.
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How the COLA and Key Dates Help with Financial Planning
For retirees, knowing how much their Social Security benefits will increase in the coming year is essential for financial planning. With this year’s 2.5% COLA, some retirees may use the increase to cover rising costs or set aside money for unexpected expenses.
While this year’s COLA increase is smaller than in recent years, it still helps ensure that Social Security benefits keep up with inflation, particularly in an environment where living costs can rise unexpectedly. Additionally, key dates like November 20 and notifications via my Social Security make it easier for retirees to stay on top of their benefits and plan ahead for the upcoming year.
Staying Prepared for 2025
By staying informed about the COLA increase and setting up a my Social Security account, retirees can be better prepared for the changes ahead. With the 2.5% COLA increase, Social Security payments will continue to play a critical role in many retirees’ finances, helping them navigate the challenges of retirement with more confidence and stability.
