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According to Vibes.okdiario , The deadline is fast approaching to receive the last Social Security payments of December. However, these payments will not include the 2025 COLA (Cost of Living Adjustment). The good news is that the COLA increase will begin with Social Security payments starting January 3, 2025.
While the percentage of the COLA increase will be the same for all age groups, including those aged 65 and older, the dollar amount each recipient receives will differ based on the size of their Social Security payment.
COLA Increase Based on Payment Amount
If you currently receive a Social Security payment of $1,000 per month, your COLA increase will be $25. This equates to $2.50 for every $100 you receive.
For those who receive $2,000, the monthly increase will be $50. This is the average COLA boost claimed by the Social Security Administration, resulting in an annual increase of around $600.
For recipients receiving smaller payments, such as $500 a month, the COLA increase will be $12.50, reflecting the smaller payment amount. The lower the payment, the smaller the boost will seem.
Also Read – December 2024 SSDI Check Dates Confirmed by Social Security
COLA for Larger Payments
Retirees aged 65 and older who qualify for higher payments could see more significant boosts. For example, if a retiree receives $3,000 per month, they would get an additional $75 per month due to the COLA increase. This equates to a total increase of $900 annually.
It’s also possible, though rare, for a retiree to qualify for $4,000 a month, but this typically applies to those who have contributed significantly over many years. Those who receive $4,000 per month will see an extra $100 added to their monthly payment starting in 2025, or an annual increase of $1,200.
In summary, the COLA increase varies depending on the amount of Social Security benefits you receive. Starting January 3, 2025, retirees will begin to see their adjusted payments, bringing much-needed financial relief, especially for those on fixed incomes.
