Social Security Update: This step must be taken before November 20!

While relying on social security to feed and keep warm during old age, the retirees need to know about changes on the program and useful dates. There are only few things that vary annually with this program, many primarily to reflect changes in the cost of living. Here are some dates for our consideration as 2024 ends or for those who would like to know their benefits for 2025 and plan accordingly.

The Social Security Administration (SSA) uses the COLA as an approach to counteract inflation and reveal the amount every October. It is the first situation in four years of analyzing if the COLA for 2025 will be so low, only 2.5%.

The 2.5% increase in Social Security benefits for 2025

The COLA is intended to give retirees a way to offer protection against the rise in prices for commodities which is also known as inflation. In the following table, the changes were more significant because of high inflation rates experienced in the recent past years. Nonetheless, inflation in 2024 did start to decrease once again, thus, the increase for 2025 will not be as much as one might expect. In real life, this change will mean that the average monthly payment will increase from 1921 USD to about 1969 USD per month or about $23,628 per year.

But the exact amount each retiree gets relies on when they started getting benefits, how many years they worked, and how much money they made over their lifetime.

Why November 20 is an important date for retirees

For all seniors getting Social Security benefits this year, November 20 is a very important day. The simple reason is that seniors are supposed to make an account on “my Social Security,” the SSA’s online portal, by this date. This account is free, and it lets users manage and look over all details about their benefits.

Retirees can get the COLA increase notice for 2025 straight online if they set up this account before November 20.

From the first week of December, each user will understand just how much their payments will have been increased come January. This will in turn assist the to make a better budget for the next year.

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Benefits of having a my Social Security account

It is important to note that even getting information on payments, having a “My Social Security” account is useful many ways. This platform makes a lot of jobs easier, which is good if you are older. People who get money from this account can:

• Request a replacement Social Security card
• Access the 1099 form for tax purposes
• Check the status of any application
• Estimate future benefits if they have not yet started receiving them
• Manage current benefits securely

Overall, this account makes managing benefits easier and helps users stay up to date on changes, so there are fewer chances of information gaps or delays.

The impact of Social Security on retirees’ income

for most seniors, Social Security is an important source of income. The SSA says that almost 90% of people over 65 get some kind of Social Security income. For most retirees, these benefits make up about 30% of their total income. In some cases, Social Security is even more important.

In fact, about 42% of women and 37% of men who get payments depend on Social Security for at least half of their income. For some, Social Security makes up almost all of their income. For about 12% of men and 15% of women, it covers up to 90% of their wages.

With these numbers in mind, it is actually the annual COLA increase that impacts significantly for the quality of life of many retirees. That’s why, knowing the exact numbers of the monthly benefits is crucial not only for the costs covering but also for the changes in the family budget plan.

How the COLA and other key dates aid in planning for the year

Any retiree out there ought to be aware of how much his or her Social Security will rise next year so that he or she can budget accordingly. This can mean increased spending on the extra costs or put aside to cater for other unexpected one for those who received this year’s 2.5% COLA.

The important thing that the annual increase ensures that Social Security benefits retain their purchasing power compared to the Standard of living even though the increase in the current year is relatively small. This is perhaps even more the case when prices are on the rise. That way, elderly users receive regular updates and know they have all the information they need to maintain the benefits and keep them in optimum shape; these features include notifications on dates such as November 20.

FAQs On Social Security Update