More than 71 million Americans receive Social Security and Supplemental Security Income benefits. According to the Social Security Administration , 836 out of every 1,000 Floridians over 65 years of age received SS benefits in 2022.
When you factor in family members, veterans and others receiving SS payments, AARP says that's nearly 5 million people in the state.
Those benefits are expected to rise in 2025. But experts say they probably won't rise enough.
Benefits are calculated on a worker's earnings record. But as inflation rises, adjustments are required to maintain the value. The U.S. introduced annual cost-of-living adjustments (COLA) in 1973 and they went into effect two years later.
In 2023, Social Security recipients got the biggest cost-of-living increase in 40 years and it bumped up 3.2% more in January . But the initial 3% COLA forecast for 2025 is now likely to drop after the government said inflation cooled more than expected.
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What is the estimated COLA for 2025?
With two months of data still pending, current estimates suggest a 2.57% COLA increase for 2025 , which would add about $50 per month to benefits, according to the Detroit Free Press .
However, according to the Seniors League's 2024 Loss of Buying Power study, this increase would fall significantly short of covering the rising costs for seniors. The study shows that retirees would need an additional $370 per month to maintain the same buying power they had in 2010.
Additionally, the estimate does not account for any potential increases in Medicare Part B premiums.
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What changed with Social Security in January?
- A 3.2% COLA began in December 2023 for SSI recipients and in January for SS recipients
- The maximum amount of earnings subject to the Social Security tax increased to $168,600
- The earnings limit for workers who are younger than "full" retirement age increased to $22,320
- The earnings limit for people reaching their “full” retirement age in 2024 increased to $59,520
There is no limit on earnings for workers who are "full" retirement age or older for the entire year.
Who will receive final round of payments in August?
The Social Security Administration is preparing to distribute the final round of payments for August.
- Retired Workers Under Social Security : Payments remain for those born between the 21st and 31st of the month; Payments will be distributed on Wednesday.
- Supplemental Security Income (SSI) Recipients : September payments will be distributed early on Friday, due to the 1st of the month falling on a weekend.
- Social Security Disability Insurance (SSDI) Recipients : Same schedule applies as for retired workers, with payments distributed based on birth dates. The only remaining payments are for those born between the 21st and 31st of the month; payments will be distributed Wednesday.
- Special Considerations : Retirees who retired before May 1997 and SSI recipients generally receive their payments on the first of the month or the last business day prior when it falls on a weekend or national holiday.
How much money does Social Security distribute?
Payments vary due to several factors, including the number of years worked, the total amount of Social Security taxes paid in and the retirement age.
- Retired Workers : Approximately $1,907 per month
- Retired Couples (filing jointly) : Around $3,303 per month
- Survivor Benefits : Average of $1,509.50 per month
- Spouses of Retired Workers : Average of $910 per month
- Children of Retired Workers : Average of $892.39 per month
- SSI Beneficiaries (Individuals): Average of $943 per month
- SSI Beneficiaries (Couples): Average of $1,415 per month
This article originally appeared on The Daytona Beach News-Journal: Social Security benefits likely to rise in 2025 but not as much as expected. What we know
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