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topicnews · September 3, 2024

How much will Social Security benefits increase? See COLA calculator

How much will Social Security benefits increase? See COLA calculator

Democrat and Chronicle
| USA Today Network

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Social Security provides benefits to over 71 million Americans, including retirees, veterans, and dependents. Benefits are initially calculated based on a worker’s earnings records. However, to prevent these payments from losing value over time, annual cost-of-living adjustments (COLA) were created by law in 1973 and took effect in 1975. The COLA varies each year. For 2024, Social Security’s COLA was 3.2%.

Estimated COLA for 2025

Current estimates, according to the Detroit Free Press, call for a 2.57% COLA increase in 2025, which would increase benefits by about $50 per month. However, the Seniors League’s “2024 Loss of Buying Power” study shows that this increase would not be enough to cover the rising costs for older adults. The study estimates that retirees would need an additional $370 per month to maintain the same purchasing power as in 2010. This estimate does not take into account potential increases in Medicare Part B premiums.

Current social security payments

Payments vary depending on several factors, including the number of years worked, total social security contributions paid and retirement age:

  • Retired employees: Approximately $1,907 per month
  • Pensioner couples (joint assessment): About $3,303 per month
  • Survivor benefits: Average $1,509.50 per month
  • Spouses of retired employees: Average $910 per month
  • Children of pensioners: Average $892.39 per month
  • SSI Beneficiaries (Individuals): Average $943 per month
  • SSI Beneficiaries (Couples): Average of $1,415 per month

Related Resources

The current forecast for the COLA increase in 2025 is 2.57%.

Contributor: USA Network reporter Brandi D. Addison

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