Social Security Payment 2025: Here’s the Actual Amount You May Receive Next Year as Chances of Increase Rise
By Madz Dizon
Jun 09, 2024 09:00 AM EDT
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Jun 09, 2024 09:00 AM EDT
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The Bureau of Labor Statistics will be releasing the May Consumer Price Index (CPI) report that will give seniors more information about the 2025 Cost-of-living Adjustment (COLA) that could potentially be added to their Social Security benefits next year.
This year, the Social Security Administration (SSA) provided retirees and other beneficiaries of their programs with a 3.2 percent increase.
Over the past 12 months, the CPI-W has seen a significant increase of 3.4%, surpassing the Federal Reserve's desired long-term inflation rate of 2%.
Due to persistent core inflation, which excludes food and energy costs, The Senior Citizens League (TSCL), a nonpartisan senior advocacy group, has raised its long-term projection for Social Security's 2025 COLA.
According to TSCL, the 2025 COLA is projected to be 2.66%, which would round up to 2.7%. It's important to note that these calculations do not yet include the months that have the most impact on the final result.
If the information is correct, this would barely signify a fourth consecutive year of beneficiaries receiving above-average COLAs.
According to Motley Fool via MSN, retired workers, as mentioned earlier, received an average check of $1,915.26 in April. With a 2.7% COLA, they can expect a $52 monthly increase next year.
Simply put, if this prediction holds true, the typical retired worker would receive a monthly income of approximately $1,967.
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The annual COLA is determined by the SSA through a comparison of the average CPI-W figures for July, August, and September with the corresponding figures from the previous year. The CPI-W for these three months in 2023 had an average of 301.253.
In April, the CPI-W recorded a value of 307.811. If the COLA calculation was based on comparing these two figures, it would result in a 2.1 percent increase, AS USA via MSN reported.
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