All Social Security retirees should do this on October 10

Once you sign up for Social Security, you usually don’t have to do much else about the federal program. Of course, if your address, bank account or marital status changes, you’ll want to update your information with the Social Security Administration. If you decide to withdraw your application (perhaps to continue working), you can do so within 12 months.

Other than these exceptions, the main thing Social Security retirees have to do is pay any tax owed on the benefits. Many retirees don’t even have to do that if their income isn’t high enough to pay federal taxes and they live in a state that doesn’t tax Social Security benefits.

However, there is another thing that all retirees should do when it comes to Social Security. And you should on October 10 — just days away.

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Go online

The good news is that what retirees should do on October 10 is very easy: just go online. To be specific, go to the Communications Corner of the Social Security Administration website.

You will likely see more links to press releases as you scroll down this web page. On the morning of October 10, 2024, however, a news release will be issued that will reveal the Social Security Cost of Living Adjustment (COLA) information for 2025.

This press release will tell you what the percentage increase in Social Security benefits will be starting in January 2025. It will probably tell you what the average dollar increase in benefits will be next year as well.

In the past, Social Security COLA announcements have also included information about other changes that will take effect in the coming year. For example, the press release announcing the 2024 COLA also discussed an increase in the maximum Social Security payroll tax.

Why October 10?

In case you’re wondering what’s so special about October 10th, the answer is when the Bureau of Labor Statistics (BLS) releases its inflation numbers for September. The BLS does not release September inflation numbers on October 10 of each year. However, the agency releases its inflation data near the middle of each month.

These inflation figures include the Consumer Price Index for Urban Wage and Service Workers (CPI-W). Social Security uses the CPI-W to calculate the annual COLA.

However, it is not just September’s CPI-W that is used. Social Security will compare the average CPI-W for the third quarter of 2024 to the average for the third quarter of 2023. The percentage increase (rounded to the nearest tenth of 1%) will be the official 2025 Social Security COLA.

What will the Social Security COLA likely be?

You’ll have to wait a few more days to find out the exact amount of the 2025 Social Security COLA. However, it is not too early to have an idea of ​​what will likely be.

Based on July and August CPI-W figures, the nonprofit senior advocacy group Senior Citizens League projects that the 2025 COLA will be 2.5 percent. This would equate to an average monthly increase in retiree benefits of $48.

A 2.5% increase is lower than the 3.2% COLA in 2024 (and much lower than the 8.7% received last year). However, it is not much below the average benefit increase over the last 20 years of about 2.6%.

Check online on October 10 to find out exactly how much your Social Security benefits will increase. But even if not, you will find out relatively soon. The Social Security Administration usually starts notifying people about their new benefit amount by mail starting in December.