Will Social Security Recipients Get Additional Funds in January 2025? Everything You Need to Know

Social Security beneficiaries eagerly anticipate the start of each year to see if their monthly payments will increase. For 2025, the spotlight is once again on the Cost of Living Adjustment (COLA). Will recipients see more money in January? Let’s look into the details.

COLA

The Social Security Administration (SSA) uses the COLA to adjust benefits in line with inflation. This adjustment is tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), measured from the third quarter of one year to the next.

For 2025, the SSA announced a 3.2% COLA in October 2024. While smaller than the 8.7% increase in 2023, this adjustment still ensures a modest rise in payments to keep up with inflation.

Beneficiaries

The average Social Security payment in 2024 is about $1,850 per month. With the 3.2% COLA, beneficiaries can expect an increase of approximately $59 per month starting January 2025.

Although this isn’t a huge jump, the additional funds provide some relief against rising costs for essentials like food, housing, and healthcare.

“Extra Money”

Not quite. While it may feel like a bonus, the COLA is an inflation adjustment, not “extra” money. It’s designed to maintain the purchasing power of benefits as prices rise.

This adjustment applies not only to Social Security but also to Supplemental Security Income (SSI) recipients, who will see a similar percentage increase in their payments.

Key Takeaways

Here are some important points to keep in mind about the 2025 COLA:

1. Smaller but Helpful: While the 2025 COLA is smaller than recent years, any increase helps to combat inflationary pressures.
2. Review Your Payments: Use the SSA website to confirm your updated payment amount and schedule.
3. Stay Informed: Check your nearest Social Security office or your SSA account for personalized details about your benefits.

How to Manage

To stay on top of your payments:

• Set up an online account at the SSA website to view payment details, update information, and receive notifications.
• Contact your local Social Security office for assistance with questions or issues.

While the 3.2% COLA won’t bring a massive increase, it’s a step toward easing the financial burden of inflation. Make sure to review your benefits and plan your budget accordingly for 2025.

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