The Social Security Administration has announced a 2.5% increase in benefits for 2025, affecting over 72.5 million Americans. Social Security retirement benefits will see an average increase of about $50 per month, starting in January. This marks the continuation of a decade-long trend of cost-of-living adjustments averaging around 2.6%. The announcement comes as inflation has begun to cool, providing much-needed relief for beneficiaries.
In addition to the benefit increase, other adjustments, such as the maximum amount of earnings subject to the Social Security tax, are set to increase in January. The Administration will begin notifying individuals about their new benefit amount by mail starting in early December. A newly designed and improved COLA notice will make it easier for customers to understand their new benefit amount and any deductions, with the option for online access through the my Social Security account.
Those enrolled in Medicare can expect their 2025 benefit amount information to be available via the Message Center on my Social Security starting in late November. Individuals who wish to set up alerts for important messages should ensure they have a personal my Social Security account by November 20.
The annual COLA increase is tied to the Consumer Price Index and is calculated according to the Social Security Act. The adjustments aim to help beneficiaries keep up with expenses and changing economic conditions. For more information on the COLA calculation and other updates, visit www.ssa.gov/cola.
Stay informed about Social Security benefits, SSI payments, and Medicare changes by visiting the official Social Security Administration website.
Attribution:
This article was summarized and republished from the original source.
Please check the original article here: https://blog.ssa.gov/social-security-announces-2-5-percent-benefit-increase-for-2025/.