Author: Mogtma
If you’re a Social Security beneficiary, prepare for some changes in your upcoming checks. This November, many recipients of Supplemental Security Income (SSI) could receive two payments, while Social Security checks will see a slight cost-of-living adjustment (COLA) increase of 2.5% starting January 2025. Here’s everything you need to know about these changes and what it means for your finances.
What Is the Social Security COLA for 2025?
The Social Security Administration (SSA) recently announced a 2.5% increase in benefits, marking the lowest rise since 2021. Starting in January 2025, this adjustment will affect approximately 68 million Americans who rely on Social Security, including retirees, veterans, and beneficiaries receiving Supplemental Security Income (SSI).
- 2025 Benefit Increase: On average, recipients will see about a $50 increase in their monthly payments, which translates to an annual total of around $23,484. This is lower than the 3.2% increase beneficiaries received in 2024, reflecting lower inflation compared to previous years.
Why Are Some SSI Recipients Getting Two Checks in November?
Some recipients of Supplemental Security Income (SSI) may see two SSI payments in November 2024 due to the payment schedule. Here’s why:
- Double Payments in November: SSI benefits are typically paid on the first business day of each month. This year, however, since December 1 falls on a Sunday, December’s SSI payment will be issued a day early, on November 29. SSI recipients will therefore receive two checks in November but should note they won’t receive an SSI payment in December.
For Social Security recipients who also receive SSI, this means they’ll receive three payments in November: their regular Social Security check and two SSI payments, with only one Social Security check to follow in December.
Will the COLA Keep Up with Rising Living Costs?
Social Security’s COLA is designed to protect beneficiaries’ purchasing power against inflation, but for many older adults, it falls short of covering rising costs in areas like health care, food, and housing. According to an AARP survey of 1,000 adults over 50, 83% indicated that a COLA below 3% would not be sufficient to meet their expenses.
- Rising Poverty Rates Among Seniors: Census Bureau data shows that poverty among seniors has increased, reaching 14.2% in 2023, up from 10.7% in 2021. Experts warn that without policy changes, Social Security may struggle to keep up with future benefits, placing additional strain on those who depend on it most.
Mike Lynch, a retirement planning expert, underscores the importance of proactive steps: “The Social Security Administration has been very transparent that without adjustments, they may not be able to sustain full benefits for future retirees.”
Florida’s Rising Cost of Living
In Florida, where nearly one in five Social Security recipients resides, the cost of living continues to climb. According to the Bureau of Economic Analysis, personal consumption expenditures in the state rose by 8.1% from 2022 to 2023, with notable increases in the cost of housing, health care, and food.
Here’s a breakdown of the average personal consumption expenditure (PCE) per capita in Florida last year:
- Housing and Utilities: $12,191
- Health Care: $8,996
- Groceries: $4,736
- Gasoline and Other Energy Goods: $1,168
- Other Personal Expenditures: $33,112
As costs increase, many Social Security recipients, particularly in high-cost states like Florida, face challenges meeting their essential expenses despite the 2025 COLA adjustment.
Final Thoughts
The 2025 COLA increase for Social Security, though helpful, may not be sufficient for seniors facing high living costs. Beneficiaries are encouraged to budget carefully, especially those receiving double SSI payments in November who will not receive additional SSI support in December. Ensuring adequate retirement planning and understanding these COLA adjustments are crucial for long-term financial security.
Report contributed by Mogtma News
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