Big News for Social Security Recipients: 2025 Benefits to Rise by 2.5% – More Shocking Updates Inside

Social Security recipients will see a 2.5% increase in their cheques in the new year. In 2025, retirees will receive an average monthly cost of living adjustment, or COLA, of around $50 more. The Social Security Administration determines the figure depending on changing prices and the economy.

Though next year’s COLA represents an increase, it accounts for less than one-third of the record-high raise projected in 2023. “That was a reflection of the 40-year record inflation high Americans suffered due to all of the stimulus spending during the global pandemic, Romina Boccia of the Cato Institute explained. “The Federal Reserve has since tightened down on price changes with the interest rates, etc., which has pushed inflation down.” 

Recipients should have received notification of how much more they will get when the first Social Security payments are distributed in roughly two weeks. Congress recently passed legislation to enhance Social Security payments for 3 million public-sector workers and their surviving spouses, some of whom did not pay into the system. The average benefit will increase between $360 and $1,200. However, the bill’s $200 billion price tag exacerbates Social Security’s overall budget crisis. Experts predict that the program will be insolvent by 2033 if present spending and revenue streams are not addressed and altered promptly.