If your Social Security check is higher than this, expect an above-average cost-of-living adjustment (COLA) in 2025

The Social Security Administration will announce the 2025 cost of living adjustment (COLA) on October 10, 2024. Until then, you can only guess what it will be. Existing data suggests the COLA will be lower than what program beneficiaries have seen in recent years.

It’s disappointing for seniors who face rising costs and few other sources of income in retirement. But before you start worrying, it’s important to remember that everyone sees their paychecks grow by a slightly different amount. Here’s how to know if you’ll get an above-average boost next year.

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How far will COLA go for you?

Social Security recipients see their checks increase by the same percentage when the new COLA goes into effect. But since everyone receives different amounts of benefits, this means that the increase in the value of the dollar varies.

The average Social Security check for retired workers as of August 2024 is $1,920 per month. That means if you’re getting more than that amount right now, you’ll get an above-average 2025 dollar COLA.

The Senior Citizens League’s most recent estimates put the 2025 COLA at about 2.5 percent. That would raise the average check of $1,920 to $1,968 per month — an increase of $48. As long as your COLA does not fall below this estimate, you can expect $48 or more in additional monthly Social Security income if your current checks exceed the average of $1,920.

If you want to know what your paychecks might look like in 2025, add an extra 2.5% to your current paychecks. Remember this is just an estimate, the official number will come on October 10th.

What if the COLA is not enough?

It is highly likely that the 2025 COLA will not be enough to combat the cost-of-living increases that some retirees have seen over the past year. It’s disheartening, and many blame the way the government calculates COLAs in the first place. Unfortunately, only the government can change that, so retirees will have to find other ways to cover what Social Security doesn’t provide.

Obviously, personal savings are great if you have them, but many people lack adequate retirement savings, forcing them to rely on other sources of income.

Returning to work, while far from ideal, can provide you with a steady monthly salary. And you don’t have to go back to whatever you did before retirement. Many retirees are looking for more flexible opportunities that align with their interests. Part-time and remote positions can add even more to your options. Remember, you just need to earn enough to supplement your Social Security checks and personal savings.

You may also qualify for other government benefits that can help with essential costs, such as food, housing, utilities, and healthcare. However, it takes time for the government to review these applications, so it’s best to apply as soon as possible if you think you might need them in 2025.

Once the 2025 COLA is announced, you can prepare your budget for next year, if you haven’t already. Get a plan in place before January so you know exactly how much money you can withdraw from your personal savings and how much you’ll get from other sources to cover your expenses.