If your Social Security check is larger, you can expect a higher-than-average cost of living adjustment (COLA) in 2025.

The Social Security Administration will announce the 2025 Cost of Living Adjustment (COLA) on October 10, 2024. Until then, all you can do is use your best guess as to what it will look like. Existing data suggests the COLA will be lower than what program recipients have seen in recent years.

That’s disappointing for seniors struggling with rising costs and few other sources of retirement income. But before you worry, understand that everyone sees their checks increase by a slightly different amount. Here you can find out whether you will achieve an above-average increase next year.

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How far will the COLA go for you?

Social Security recipients will see their checks increase by the same percentage when the new COLA goes into effect. However, since everyone receives different benefit amounts, this means that the dollar appreciation will be different.

The average Social Security check for retired workers is $1,920 per month in August 2024. This means that if you receive more than this amount now, you will receive an above-average 2025 COLA in dollar value.

The latest estimates from the Senior Citizens League put the COLA at about 2.5% in 2025. This would increase the average check from $1,920 to $1,968 per month – an increase of $48. As long as the COLA is not less than this estimate, you can expect to receive an additional monthly Social Security income of $48 or more if your current checks are above the average of $1,920.

If you want to get a rough idea of ​​what your 2025 checks might look like, add an additional 2.5% to your current checks. However, keep in mind that this is just an estimate as the official number will be announced on October 10th.

What if the COLA isn’t enough?

It is very likely that the 2025 COLA will not be enough to offset the cost of living increase that some retirees experienced last year. It’s disheartening and many blame the way the government calculates COLAs. Unfortunately, only the government can change that, so retirees must find other ways to cover what Social Security doesn’t cover.

Of course, personal savings are great to have, but many lack sufficient retirement savings and rely on other sources of income.

While returning to work is far from ideal, it can provide you with a stable monthly paycheck. And you don’t have to go back to what you were doing before retirement. Many retirees are looking for more flexible options that fit their interests. Part-time and remote positions can further expand your opportunities. Remember, you only need to earn enough to supplement your Social Security checks and personal savings.

You may also be eligible for other government benefits that can help you cover your essential costs such as food, housing, utilities and healthcare. However, the government’s review of these applications takes some time. Therefore, it is best to apply as soon as possible if you think you may need them in 2025.

Once the 2025 Social Security COLA is announced, you can prepare your budget for next year if you haven’t already. Make a plan before January so you know exactly how much money you can withdraw from your personal savings and how much you will get from other sources to cover your expenses.