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Big News for Social Security and SSI Payments in 2025!

Starting in 2025, over 72.5 million Americans will see a 2.5% increase in their Social Security benefits and Supplemental Security Income (SSI) payments. This adjustment is designed to help keep up with rising costs, even as inflation slows down.

Here’s what it means:

What’s Changing?

  • Social Security Benefits: Monthly payments for retirees will increase by an average of $50 starting in January 2025.
  • SSI Payments: Payments for about 7.5 million SSI recipients will go up starting December 31, 2024.
  • Who’s Affected: Nearly 68 million Social Security beneficiaries and 7.5 million SSI recipients will benefit. Some people receive both types of payments.

Why the Increase?

This annual adjustment is called the Cost-of-Living Adjustment (COLA), which ensures that benefits keep pace with changes in living expenses. The 2.5% increase for 2025 is slightly below the 3.2% COLA in 2024 but aligns with the 10-year average of around 2.6%.

The COLA is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), calculated by the Department of Labor’s Bureau of Labor Statistics.

Other Changes for 2025

  • Social Security Taxable Maximum: The maximum earnings subject to Social Security taxes will rise to $176,100, up from $168,600.
  • Medicare Updates: Details about Medicare changes for 2025 will be available at Medicare.gov.

How Will You Know Your New Benefit Amount?

  • Notifications: Social Security will start sending letters in early December to let you know your updated benefit amount.
  • Improved COLA Notice: This year, notifications will be easier to read and more personalized, with clear details about your new benefit amount, deductions, and important dates—all on one page!
  • Online Access: If you have a my Social Security account, you can view your COLA notice securely online. It’s faster and more convenient than waiting for mail. Plus, you can set up email or text alerts to know when your notice is ready.

To view your COLA notice online, make sure to set up a my Social Security account by November 20, 2024, at www.ssa.gov/myaccount.

Stay Informed

This COLA adjustment is an important way Social Security helps millions of Americans maintain financial stability. Whether you rely on Social Security benefits, SSI, or both, these updates will help ease some of the financial pressure in the year ahead.

Got questions or want to check your benefits? Head to Social Security’s website or log into your my Social Security account for more details.

The material in this article was provided by https://blog.ssa.gov/social-security-announces-2-5-percent-benefit-increase-for-2025/ and processed with the aid of AI.