The 2024 Cost of Living Adjustment (COLA) will affect millions of Americans, especially those on Social Security, by adjusting benefits to keep up with rising living costs. After a significant increase in 2023 due to high inflation, the 2024 COLA is expected to be smaller, reflecting more stable inflation rates.
Even a modest increase is crucial for beneficiaries, helping them manage essential expenses like food, housing, and healthcare. As the final COLA percentage is announced, many are eagerly waiting to see how it will impact their finances in the coming year.
COLA Increase 2024
The Senior Citizens League has estimated a 2.63% Cost of Living Adjustment (COLA) for 2025, based on recent consumer price index (CPI) data. This estimate is updated monthly and reflects the CPI-W, which is used to calculate COLA for urban and clerical workers.
In May, the CPI-W increased by 2.9%, and with a 3.2% COLA increase in 2024, the 2025 adjustment is expected to be between 2.6% and 3%.
COLA Increase Overview
Cost-of-Living Adjustment Details
While the exact Cost of Living Adjustment (COLA) for 2025 hasn’t been confirmed yet, staying informed is key. The estimate provides a helpful preview, but the final adjustment will depend on future inflation data and official announcements.
To ensure you receive accurate and timely updates, regularly check the Social Security Administration’s website and monitor any notifications regarding your benefits. By staying proactive, you can better plan for any changes to your COLA and manage your finances effectively.
COLA Increase Rates Past 6 Years
| COLA Increase Rates | Year |
|---|---|
| 2.80% | 2019 |
| 1.60% | 2020 |
| 1.30% | 2021 |
| 5.90% | 2022 |
| 8.70% | 2023 |
| 3.20% | 2024 |
How To Apply Online COLA Increase 2025?
- Ensure you qualify for the 2024 COLA increase, typically for Social Security beneficiaries.
- Go to www.ssa.gov to start.
- Access your “my Social Security” account or create one if you don’t have it.
- Navigate to the benefits area to review or manage your COLA application.
- Follow instructions to apply or confirm the COLA update.
- Submit your application and check your account for confirmation and updates.
- For any issues, contact SSA through their website, phone, or a local office.
FAQs
How is the COLA percentage determined?
It’s based on changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from July to September.
When is the COLA increase announced?
The COLA increase is announced in October each year.
How do I know if I’ll get the COLA increase?
COLA is usually applied automatically. Check your Social Security account or official SSA notifications for details.
