The US government has said that Social Security will only get the raise that was planned for 2025. This means that no more increases are expected. Beneficiaries, who depend on these payments for basic needs, are always on the lookout for possible increases during the year. This statement clears up a question that they had. But the law only allows one change a year, and this year it will be made through the Cost-of-Living Adjustment (COLA), just like every other year.
This yearly adjustment is a way to lessen the effect of inflation on Social Security recipients by changing their payments every year to reflect the state of the economy. This change is meant to make sure that retirees and other beneficiaries don’t lose buying power when the cost of living goes up. But the COLA is only used once a year, which is why there are no plans for another raise in 2025.
The COLA rate for 2025 has already been set at 2.5%. This is how much your Social Security income will go up overall in 2025. Because of this, the one-time increase is meant to help beneficiaries meet their costs as a result of inflation. However, there will be no more money later in the year.
With the 2025 COLA, how much will Social Security go up?
Social Security has announced the new highest payments that people will get with the 2.5% COLA for 2025. All types of payments will go up because of this change. This means that retirees, people with disabilities, and people who get early retirement benefits will all get more money. Here is a table that shows how much each type of benefit will pay out at its highest level in 2025:
People who get benefits will be able to meet their basic needs with more money thanks to this raise. However, they will only see it once a year because the COLA adjustment doesn’t happen more than once a year.
Why does Social Security only get one raise a year?
Social Security only makes one yearly increase to the benefit program to protect it and make sure it can last. The Consumer Price Index is used to figure out this rise once a year. It is called the Cost-of-Living Adjustment (COLA) and it is meant to account for inflation. Adding this one-time change every year is needed to keep things stable and expected over time, so there aren’t too many changes that could throw off the Social Security reserve fund.
Because of this, people who get Social Security should remember that their benefits only change every year, even though they go up. The COLA makes it possible for monthly payments to help a lot with rising costs of living. This helps achieve the goal of giving security and financial support to the millions of beneficiaries in the United States.
Still, it’s important to remember that we’re talking about the COLA rise. There may be one more one-time raise by the US government, but Social Security checks will not usually go up again until the next COLA increase in 2026.
