The Social Security Administration warned of changes to all payments a few days ago. Beneficiaries are excited about this much-anticipated news because they want to know how it will affect their monthly checks.
At the moment, the wealthiest people who get Social Security get a big check every month: $4,873, or over $58,000 a year. In 2025, this number will go up. Starting in January, these people will get the same cost-of-living increase (COLA) as everyone else.
2025 COLA increase for Social Security
Because COLAs are calculated as a percentage, each recipient’s check will go up by the same amount. Because of this, the people who are getting the biggest payments today will see the biggest gains in value. The rise might not be as big as people think, though.
The most recent predictions from The Senior Citizens League (TSCL) came true. The COLA for Social Security in 2025 will be 2.5%. For people who are already getting the highest benefit, this would mean an extra $235 a month, bringing their total monthly payments to $5,108. The extra $2,820 a year comes from this change.
People who get the most from Social Security often feel like their checks are very small. For at least 35 years, you must constantly earn the most that is taxed by Social Security, which for 2025 is $176,100. This will allow you to get the maximum benefit.
You also have to wait until you turn 70 years old to file for Social Security. This is not an easy thing to do. Most of the time, people who are able to do this are not having a hard time with money and can easily cover their living costs, even with the Cost of Living Adjustment (COLA).
Changing Landscape for Top Social Security Earners
It’s interesting that people at the top of the list of Social Security recipients may not stay there forever. The formula used to figure out Social Security benefits changes every year, which could mean that the highest benefit goes up by a small amount each year.
Because of this, a new group of high-earning 70-year-olds might soon start getting even bigger checks. There is no way for them to know the exact amount, though, until the Social Security Administration says what the highest payment for 2026 is. This news usually comes at the same time as the COLA update.
The COLA Increase for Social Security in 2024
The average monthly Social Security payment for December is expected to be $1,927. With a 2.5% Cost of Living Adjustment (COLA), the monthly benefit would go up to $1,976, which is only a $49 rise. But this might not be enough to keep up with the rising costs of life for retirees.
The Official COLA Announcement
The COLA rate was made public on October 10, 2024. After that, you can figure out how much your future benefit checks will be by adding the COLA number to the ones you are already getting.
The Social Security Administration will also send you a personalized letter in December that tells you exactly how much money you will get in benefits in 2025. If you don’t want to figure it out or wait until you get the letter in the mail, you can use your my Social Security account.
Read Also :- New Jersey property tax relief: ANCHOR rebates now ready
