Tens of millions of older Americans will see a modest increase in benefits this January when a new cost-of-living adjustment is added to Social Security…
Tens of millions of retirees will see a modest increase in benefits this January when a new cost-of-living adjustment is added tois an additional $561 in Social Security income over the course of the year intended to help meet higher prices for food, fuel, and other goods and services. That’s a smaller percentage than last year, because consumer prices have eased, and the COLA is tied to the Bureau of Labor Statistics Consumer Price Index.
The short answer is that taxes fund Social Security. The government uses taxes from working people to pay benefits to people who have already retired, people who are disabled, the survivors of workers who have died, and dependents of beneficiaries. While the money is used to pay people currently receiving benefits, any unused money goes to the Social Security trust fund. Some of the money in the trust, together with the Social Security contributions of people in the workforce, pay for future benefits.
We asked an economist to answer some commonly Googled questions about Social Security in the United States. recipients will get a 2.5% increase in their benefits in 2025. That's about $50 per month for the average recipient, according to government estimates.The agency will begin notifying recipients about their new benefit amount by mail starting in early December. Adjusted payments to nearly 7.5 million people receiving Supplemental Security Income will begin on December 31.
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