COLA Update 2024

Social Security Cost of Living Adjustment (COLA)               

Social Security and Supplemental Security Income (SSI) benefits for more than 72.5 million Americans will increase 2.5 percent in 2025. 

The 2.5 percent cost-of-living adjustment (COLA) will begin with benefits payable to nearly 68 million Social Security beneficiaries in January 2025. Based on the increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $176,100 from $168,600.

Additional information from the official website of the Social Security Administration is available at https://www.ssa.gov/cola/.

About COLA
The purpose of the Cost-of-Living Adjustment (COLA) is to ensure that the purchasing power of Social Security and SSI benefits is not eroded by inflation. The adjustment is based on the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Automatic annual COLAs began in 1975 as part of the 1972 Social Security Amendments.

Stay Safe
We are aware of fraudulent calls and internet “phishing” schemes targeting Social Security beneficiaries. Protect your accounts and identity by not revealing personal information, selecting malicious web links, or opening malicious email attachments.
No government agency or reputable company will solicit your personal information or request advanced fees for services in the form of wire transfers or gift cards. Learn more at “my Social Security account,” available at https://www.ssa.gov/myaccount/.

Did You Know
Social Security benefits are typically computed using "average indexed monthly earnings." This average summarizes up to 35 years of a worker's indexed earnings. Administrators apply a formula to this average to compute the primary insurance amount.

-

V24302178