The federal government of the United States of America has made it clear that no COLA increase will occur until January 2025. As we all know, the social security income is increased on an annul basis as per the COLA increase. There are many speculations regarding the social security increase coming in June 2024 but the Social Security Administration (SSA) has declared these speculations to be false. The COLA increase in 2024 is 3.2% and it is expected to rise with an estimation of around 3% in the following year. Though, we will not be able to gain official confirmation on COLA increase for 2025 until October 2024. Further to this post, I will cover the fresh updates on the COLA 2025 which will include expected COLA rise in 2025 and major increment in social security benefits. Read the full post, so that you cannot miss any updates.
No COLA Increase Will Occur Until January 2025
To compensate the high inflation and rising cost of living for the low-income individuals and their family along with disabled citizens, SSA annually makes adjustments in social security income. If the cost of living rises, so does the monthly social security benefits. As of 2024, the COLA increase of 3.2% increase has been implemented in the monthly aids provided to the retired seniors and disabled citizens. Under this, the average monthly payment for an eligible individual and a married couple is $943 and $1,415 respectively. In addition to it, a disabled citizen receives an aid of $1,537 per month. For months, there are many speculations regarding the social security payment increase as per COLA. However, it is confirmed that no COLA increase will occur until January 2025.
As of 2024, almost 71 million eligible citizens received the increase social security income in 2024 as per 3.2% COLA increase. The SSA is expected to announce the COLA for year 2025 in October 2024 which will be implemented for the social security beneficiaries from January 1, 2025. An early estimation claims an increase of 3% in COLA for the year 2025 may be implemented in the following year. The recipients under the Supplemental Social Income (SSI), Social Security Disability Insurance (SSDI) and Veterans’ Affairs (VA) benefits may expect a major change in their social security monthly income. This will guarantee a major financial relief to the beneficiaries having low-income or no income.
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No COLA Will Occur Until January 2025 Overview
| Post title | No COLA Increase Will Occur Until January 2025 |
| Country | USA |
| Department | SSA |
| Purpose | To provide latest updates on COLA |
| Category | Finance |
| For year | 2025 |
| Official website | www.ssa.gov |
Expected COLA Increase in 2025
In 2024, the COLA is increased by 3.2% which is the lowest in last 3 years if we look at the previous years’ number. In 2022, the COLA was increased by 5.9% and it was the highest in decades for year 2023 with an increase of 8.7%. COLA increase is calculated by using consumer price index for urban wage earners and clerical workers (CPI-W). When the inflation and the cost of living rises in the country, then the SSA ensures an increment in social security benefits so that the needy citizens do not have to suffer any financial burden.
As of early 2024, the COLA increase for year 2025 was estimated at 1.5% which was later changed to 1.75 in following months. As of May 2024, the expected rise in COLA is 3% and it will not be implemented until 1st January 2025. We have to wait until October of this year to gain the confirmation for COLA 2025 via SSA. As I have mentioned the average monthly social security checks in 2024, the beneficiaries can expect higher payment amounts after the COLA 2025 is implemented. To check your average payment status, you are advised to visit the official website of the SSA.
COLA Increase Over the Years
As previously mentioned, social security monthly income is increased on an annual basis as per the rise in inflation and cost of living. COLA increase is known to differ from year to year and if the cost of living does not rise, then the COLA will not be increased. You can check the major changes in COLA over the years in the following table:
| Year | COLA increase |
| 2009 | 5.8% |
| 2010 | 0.0% |
| 2011 | 0.0% |
| 2012 | 3.6% |
| 2013 | 1.7% |
| 2014 | 1.5% |
| 2015 | 1.7% |
| 2016 | 0.0% |
| 2017 | 0.3% |
| 2018 | 2.0% |
| 2019 | 2.8% |
| 2020 | 1.6% |
| 2021 | 1.3% |
| 2022 | 5.9% |
| 2023 | 8.7% |
| 2024 | 3.2% |
Who is Eligible for Increased COLA Benefits in 2025?
To make sure there remains no partiality among the social security beneficiaries, the social security administration has set certain guidelines which must be qualified by the recipients. I have provided the eligibility criteria for the social security income with COLA 2025 in the following points:
- A person must be citizens and permanent resident of the United States of America.
- The beneficiaries under the SSI, SSDI and the VA programs are eligible to claim the monthly supplemental income.
- Disabled citizens are required to show a disability proof signed by a professional healthcare staff to be eligible.
- A person must have a Social Security Income (SSN).
- As per the retirement criteria, a person must be 62 years old or above.
- A person must have at least 40 work credits or have worked for at least 10 years during his employment years.
- Children must be under 18 years old to be eligible.
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As a Editor at Sass News Portal ,Lara skillfully combines her knowledge of political economy and personal finance to empower readers with crucial insights and answers to their most pressing questions. With her finely honed analytical skills and a commitment to providing accurate coverage of today’s pressing issues, Lara strives to engage readers across a wide range of topics.