Revealed: The Exact Social Security Payment You Could Be Getting—Don’t Miss Out

The Social Security Administration (SSA) issued a cost of living (COLA) rise for Social Security benefits on October 10, which has sparked criticism. It is the amount by which benefits will be increased to keep up with inflation and ensure that beneficiaries do not lose purchasing power. Even though the rise was announced in October, the COLA will not take effect until the new year, giving beneficiaries time to plan their new budget and determine how their expenses would be met with this increased amount of money.

What is the COLA for Social Security benefits?

The Consumer Price Index for Urban Wage Earners and Clerical Workers, a monthly release by the Bureau of Labor Statistics that measures the average price change for consumer goods and services, calculates the COLA. The SSA analyzes the CPI-W from the year’s third trimester to the previous year, and the difference determines the current COLA. When inflation is high, the COLA increases; when inflation is low, the COLA decreases. This is what happened this year: inflation fell throughout the summer after exceeding the 2024 COLA in the first half of the year, resulting in a 2.5% rise in benefits. 

Will the 2.5% raise be sufficient for retirees?

The CPI-W’s sufficiency as a good index for calculating benefits has been questioned for years. Because the vast majority of the 72.5 million Americans receiving Social Security and Supplemental Security Income are elderly or disabled, medical expenses are far more burdensome for them than for working young professionals. Housing expenses are also higher since their criteria are more particular, making them more challenging to obtain and costly.

In response to the most recent COLA announcement, TSCL Executive Director Shannon Benton stated, “Our research shows that 67% of seniors rely on Social Security for more than half of their income and that 62% are concerned that their retirement income will not even cover essentials like groceries and medical bills.” And the league is not saying this lightly; in a recent survey of 3,000 older Americans, 72% said that updating the COLA calculation to an index that accurately represents seniors’ growing costs should be Congress’ top priority.