Social Security’s annual check increase is coming sooner than expected

Social Security checks with the next annual increase will arrive sooner than expected.

The Social Security Administration (SSA) increases the value of Social Security checks every year to prevent inflation from eroding their purchasing power.

This annual increase, known as the Cost of Living Adjustment (COLA), is typically reflected in the first checks of the new year, on the first day of January 2025.

However, because January 1 is a holiday, those who are required to receive a supplemental security income check will actually receive it on December 31 of this year.

These checks will drive the COLA increase in 2025, which Tododisca said is expected to increase by 2.5 percent.

The first checks for the 2025 COLA increase will actually arrive on December 31, 2024

That means the usual maximum payment for these checks, $943 for individuals and $1,415 for a couple, could rise to about $967 and $1,450, respectively.

The COLA increase depends on inflation, meaning the increase varies from year to year.

The SSA uses the Consumer Price Index for Urban Wage Earners and Office Workers (CPI-W) to calculate its annual adjustment.

Although the official figure has not yet been released, CPI data suggests it will be around 2.5 percent.

The official figure for next year’s increase is expected to be published in the second week of October.

This will be a smaller increase than in 2024 as inflation has cooled significantly in recent months.

About 68 million Americans receive some form of Social Security benefits each month.

Total payouts, including pension, disability and survivor benefits, now cost the government about $1.5 trillion a year.

The highest pension payments are up to $4,873, although this amount is likely to be lower for most recipients.

In fact, the average monthly pension check is $1,907, a figure that takes into account the 35 highest-earning years of a recipient’s career and is adjusted for inflation.

“The maximum benefit depends on the age at which you retire. For example, if you retire at full retirement age in 2024, your maximum benefit will be $3,822,” the SSA’s website says.

Social Security payments now cost the government around $1.5 trillion per year

“However, if you retire in 2024 at age 62, your maximum pension will be $2,710.”

“If you retire in 2024 at age 70, your maximum pension will be $4,873,” the website explains.

Despite the upcoming COLA increase, Americans living in nine states will receive less Social Security starting in September due to a tax jump.

Beneficiaries living in Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, Vermont or West Virginia may have to pay more.

The exact impact depends on which state you live in and overall income.

It was also announced earlier this year that Social Security is expected to run out of funds by 2035.

The program relies on its trust funds to provide monthly benefit checks to about 70 million Americans.

But an aging population drives up the cost of the program because a smaller share of people pay for it and expenses outweigh revenues.

The Social Security Board of Trustees’ most recent annual report found that the program will only be able to pay out full benefits for the next 11 years – a year later than previous estimates.