There are over 71 million people in the United States who get benefits from Social Security. These people include retirees, veterans, and dependents. At the outset, benefits are computed by taking into account a worker's previous earnings record. The annual cost-of-living adjustments (COLA) were first implemented in 1975 after being enacted by legislation in 1973. The purpose of these adjustments was to ensure that these benefits would not lose their value over time. Every year, the COLA is different. The cost-of-living adjustment for Social Security was 3.2% for the year 2024.
A COLA estimate for the year 2025
An rise in the cost-of-living adjustment (COLA) of 2.57% is anticipated for the year 2025, according to the Detroit Free Press. This would result in an increase of nearly $50 per month in benefits. However, according to the findings of the 2024 Loss of Buying Power research conducted by the Seniors League, this rise would not be sufficient to compensate the increased prices that older individuals are experiencing. According to the findings of the study, in order for retirees to keep their purchasing power at the same level as it was in 2010, they would require an additional $370 per month. There is no consideration given to the possibility of a rise in the premiums for Medicare Part B in this estimate.
Current payments received from Social Security
There are a number of elements that determine the amount of payments, including the number of years worked, the total amount of Social Security taxes paid, and the age at which one retires:
- Employees who have retired receive approximately $1,907 per month.
- Approximately $3,303 per month for retired couples who file their taxes jointly
- A monthly average of $1,509.50 is provided for survivors' benefits.
- On average, retired workers' spouses receive $910 per month in benefits.
- On average, children of retired workers receive $892.39 per month in benefits.
- Beneficiaries of Social Security Income (Individuals): In average, $943 per month
- Beneficiaries of Social Security Income (Couples): An average of $1,415 per month
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