Authorities declare a Social Security Check Increase for Retirees so citizens can meet their expenses. The payout based on this can be paid by the Social Security Department, which works with vulnerable citizens who have low incomes. Payment amount may be set according to the cost of living adjustment provided by the authorities.
With the help of COLA, the number of average payments the government makes to eligible citizens has risen. Such benefits are available to retired workers whose income is below the threshold and with a specific service period.
Social Security Check Increase for Retirees
The Social Security Administration has released the COLA Increase for 2025 on its official website to help citizens keep pace with inflation rates. However, after the new social security check increases for retirees, it is expected that half of them will be planning to return to their work.
They decide that more than the 2.5% increase in their monthly payments given by authorities is needed to manage their benefits. According to a survey by the Motley Fool, nearly 20,000 American retirees on 11th October are considering dropping retirement and continuing to work to earn a stable livelihood, complicated by authorities’ benefits.
Social Security Check Increase Overview
Organization | SSA |
Name of Program | Social Security Benefits |
Country | USA |
Average Amount | $1,907 per month |
New Payments | From January 2025 |
Beneficiaries | Retirees, individuals with disabilities, survivors |
Category | Government Aid |
Official Website | https://www.ssa.gov/ |
Social Security Benefits and Adjustments
Social Security Checks benefit tens of millions of retirees, people with disabilities, and survivors of deceased beneficiaries each year. The amount is readjusted every year with the COLA, which is determined by the average change in the CPI-W for the current year’s third quarter compared to the previous year.
- Benefits increased by 8.7% in 2023 and 3.2% in 2024, keeping pace with inflation, but 54% of retirees say the 2025 COLA is too low.
- An article by Jack Caporal of The Motley Fool writes that the average monthly social security payment now stands at $1,907 after 3.2% COLA. However, it is far from the amount Americans aged 65 and older require for the month of 2023, which is $5,070.
- While Social Security is enough to fund many of the post-retirement expenses, people still seek sources of supplemental income to match their cost of living.
- Even though only 54 percent of American households currently have a retirement account, this estimate was derived from a study by the Federal Reserve in 2022.
Millions of Seniors Rely on Social Security Check Increase for Retirees
- 28% of American seniors rely solely on Social Security checks as their only income, whereas 32% rely heavily on them, comprising 60 percent of those needing significant help, writes The Motley Fool.
- People might want to return to work because it serves the purpose and routine or contributes to causes. However, many do so for their financial security and living standards.
- The Senior Citizens League, an advocacy group that calls itself nonpartisan, found in its studies that the COLA increases do not suffice for older Americans.
- In 2024, the average Social Security check will be worth only about 80% of its value compared to 2010.
- TSCL advocates for switching the COLA formula from the CPI-W to the CPI-E, which is believed to be more reflective of the spending patterns of seniors 62 or older.
FAQs
How many retirees rely only on Social Security?
About 28% of seniors depend entirely on Social Security for income.
What is the Cost of Living Adjustment Increase for 2025?
2.5% is the COLA increase for the next year, 2025.
What is the official website of the Social Security Administration?
www.ssa.gov is the official website where citizens can learn about essential details.