How much will survivor benefits increase with the Social Security COLA Increase 2025?
Around 70 million Americans are about to learn how much their Social Security benefits will increase in 2025. The Social Security Administration (SSA) is preparing to announce its annual cost-of-living adjustment (COLA) soon, a change designed to help beneficiaries keep up with inflation and rising costs.
The SSA adjusts Social Security benefits every year to match inflation, ensuring that retirees and other beneficiaries do not lose purchasing power as prices rise.
This policy has been in place since the 1970s, making COLA a key component in maintaining the real value of Social Security payments. The adjustment is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), a metric that tracks inflation by assessing the spending patterns of American workers.
When to expect the announcement
The SSA typically releases the COLA adjustment at the same time the Department of Labor publishes its September inflation data. The September Consumer Price Index (CPI) report is scheduled for release on Thursday, October 10, 2024, and the COLA announcement is expected shortly thereafter.
The Senior Citizens League (TSCL), an advocacy group for older Americans, estimates the 2025 COLA will come in around 2.5 percent. If accurate, this would be the smallest adjustment since 2021, when beneficiaries received a 1.3 percent increase amid low pandemic-related inflation.
In contrast, the past two years saw significantly larger COLAs due to heightened inflation: 5.9 percent in 2022 and 8.7 percent in 2023. For 2024, seniors received a 3.2 percent increase.
The veterans’ benefits
Veterans will also see a similar increase in their benefits, thanks to the Veterans‘ Compensation Cost-of-Living Adjustment Act of 2024.
This law ensures that VA benefits will rise in tandem with Social Security’s COLA, aligning adjustments across different federal programs.
The change will affect disability benefits, clothing allowances, and indemnity compensation for surviving spouses and children. If the COLA is set at 2.5 percent, veterans’ benefits will increase by the same percentage.