Increase in Social Security benefits on October 10th

Millions of beneficiaries have been waiting for the new thing Cost of Living Adjustment (COLA) increase will be released. Starting October 10, beneficiaries will find out what the increase in Social Security benefits will be. Once the percentage is released, the Social Security Administration will take this percentage into account when calculating 2025 payment amounts. However, beneficiaries of the Supplemental Security Income (SSI) program will be the first recipients to receive the increased Social Security benefit January falls on a holiday. Therefore, they will receive this payment on December 31st of this year.

SSI recipients will receive a Social Security benefit of up to $1,450 in December

Currently, SSI participants can receive different payment amounts depending on their income, assets, and the enrollment category they chose when applying. Each beneficiary receives a monthly payment based on their filing status and source of income. If an applicant claims as an individual and meets the financial criteria, they can receive up to $943, with an average of $698. Couples who meet the income and Resource requirements can receive up to $1,415 per month, and all beneficiaries who meet the essential person (EP) criterion can receive an additional $472 per month. However, these values ​​will change with the COLA increase, which the senior league says could be around 2.5%. When this percentage becomes official in October, SSI recipients will receive the next payment amounts in December:

Once the SSI beneficiaries are paid, the Social Security Administration will continue to provide the new Social Security benefit to retirees, survivors and disabled individuals depending on the date they claimed their first monthly check, as described here:

• If they applied for benefits before May 1997. RSDI beneficiaries will receive their new increase in Social Security benefits on January 3rd.
• If you applied for benefits after May 1997RSDI beneficiaries will receive their new Social Security benefit as follows:
  • If they were born between the 1st and 10th, on January 8th
  • If born between the 11th and 20th, on January 15th
  • If you were born between the 21st and 31st, on January 22nd

How much money will RSDI beneficiaries receive if their Social Security benefit increases by 2.5%?

As already mentioned, although the official percentage will be announced on October 10, we would like to provide you with an estimate of the new payment amounts that pensioners, survivors and disabled people will receive from January 2025:

The average retirement age could change and retirees could be affected

Everyone knows that Social Security will run out of money by 2033. For this reason, politicians and Congress have discussed making a change average retirement age in the United States. According to recent surveys, the average retirement age in America is 62. However, the majority of employees expect to retire at 67. More than 56% of retirees are choosing to retire earlier than planned. About 38% of early retirees said they were forced to stop working due to health problems or impairments, highlighting the importance of health in early retirement planning.

For example this Congressional Budget Office (CBO) estimates that all recipients affected by the full retirement age (FRA) increase will have their lifetime Social Security benefits reduced. The same monthly payment would be paid for a shorter period of time to employees who elected to delay taking retirement benefits for the same number of months as the FRA increase. Workers who elect to receive retirement benefits at the same age as under current law would be paid less for the same number of years. Cutting Social Security benefits would improve the program’s finances.