2025. Social Security COLA increase

Social Security Get a Boost in 2025: What You Need to Know!

Are you ready for an extra kick in your Social Security checks this January? Find out how a 2.5% COLA is shaking things up for retirees, veterans, and taxpayers!

As we roll into 2025, Social Security recipients can expect a welcomed boost in their monthly checks! Following last week’s announcement, retirees will see a 2.5% cost-of-living adjustment (COLA) in their benefits, which will hopefully help stretch those dollars a bit further in the face of rising costs. Imagine treating yourself to an extra slice of pizza or finally indulging in that much-needed spa day - it’s all thanks to your pennies getting a bit heavier!

But wait, there’s more! Not only retired workers stand to benefit from this change. Military retirees and veterans receiving disability benefits will also enjoy the same 2.5% pay boost. This means that service members who have dedicated their lives to protecting our freedoms will also have a little extra cushion to enjoy their post-service years. So deserving! It’s like a thank-you gift from Uncle Sam wrapped in a nice little bow of extra cash.

However, it’s not all sunshine and rainbows; with updates often come some catches. More Americans will see an increase in the amount of Social Security tax that they pay each year, which could make some frugal folks weep at the thought of newfound tax burdens. If you’re planning to retire soon, now's the time to strategize about your retirement income. The fact remains that Social Security will still play a large role in your financial landscape, so don’t let any increase discourage your future planning!

In addition to this extra support, Social Security has some sweeping adjustments on the horizon! Starting January 2025, recipients of Supplemental Security Income will see an increase in payments—some reports even suggest payments up to $5,108 for eligible individuals! As everyone gears up for the changes, one fact remains true: planning is key in achieving financial stability during retirement.