Are you eagerly anticipating the update on the 2025 Social Security cost-of-living adjustment (COLA)? Each year, Social Security beneficiaries receive a COLA based on inflation data from the third quarter. While the official announcement isn’t expected until October 10, estimates indicate that the average retired worker may see a modest increase in their monthly benefit.
Image source: Getty Images.
The average retired worker currently receives around $1,920.48 per month from Social Security. With a projected 2.5% COLA increase for 2025, this could translate to an additional $48 per month, totaling $576 more annually. While this sum may not be substantial, it can still have a positive impact on your finances.
For individuals enrolled in both Social Security and Medicare, there is an additional factor to consider. Medicare Part B premiums are deducted from Social Security benefits, meaning any increase in Part B costs could offset the raise in Social Security benefits. In 2024, the Medicare Part B premium rose by $9.80, reducing the net impact of the COLA increase for many retirees.
It’s essential to take a holistic approach to financial planning, especially when considering the implications of these adjustments on your monthly income. If you find the projected increase insufficient, exploring strategies to enhance your financial situation is recommended.
This could involve reassessing expenses, leveraging your assets such as renting out space in your home or downsizing, and even exploring part-time opportunities to supplement your income. By proactively managing your finances, you can mitigate any potential limitations imposed by external factors like Medicare premium changes.
As financial and loan experts, we understand the importance of optimizing your financial resources and planning for the future. If you’re seeking additional financial support beyond Social Security benefits, consider exploring our online loan options to help you address immediate financial needs and secure your financial stability. Click here to learn more and take control of your financial well-being.
