Social Security benefits should increase modestly in 2025. Andy Markowitz reports for AARP that we won’t know for sure what the Social Security cost of living increase will be in 2025 until October. But, preliminary numbers suggest an increase of close to three percent.
In July, the Consumer Price Index was up 2.9 percent from the year before. The federal government bases its Social Security increase on the rise in the Consumer Price Index in July, August and September. Inflation is slowing down, so the increase in Social Security benefits may be closer to 2.6 percent.
Prices remain high for lots of goods and services that older adults and people with disabilities need, including food and health care. So, some experts believe that August and September inflation numbers could bring up the Social Security COLA to as much as 3.25 percent.
If Social Security benefits rise 2.9 percent, people will see, on average, an increase of $54 in their Social Security benefits, to $1,924, beginning in January. Survivor benefits would increase by $44 to $1,552, on average. Social Security Disability Insurance benefits (SSDI) would increase $45, on average, to $1,583.
In their 2024 Annual Report, Medicare’s Trustees predicted that the monthly Medicare Part B premium would increase from $174.70 to $185 in 2025. So, if the Social Security COLA increases by $54, on average, people will only see a $43.70 increase in their benefits. The other $10.30 will be deducted from their Social Security checks to cover the additional portion of their Medicare Part B premium.
Here’s more from Just Care:
- Harris and Walz: We’re not going back!” on Medicare and Social Security
- JD Vance toes the GOP line on Social Security and Medicare
- The 2024 Trustees Report shows that Social Security is benefiting from a strong economy
- Expand Social Security, don’t means-test it
- House Republicans call for major cuts to Social Security and Medicare
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