MILLIONS of Americans are set to see higher checks as the Social Security Administration, SSA, is set to reveal the exact amount in days.
The Cost of Living adjustment, COLA, will be announced on October 10 and is expected to be 2.5% according to The Senior Citizens League, TSCL.
The Senior Citizens League has announced their COLA estimate is 2.5%[/caption]
TSCL is a nonpartisan seniors group that helps promote and defend seniors’ rights and benefits.
Seniors are anticipating a smaller raise as last year’s was 3.2%.
The estimate is based on the Consumer Price Index, CPI, which decreased from 2.9% to 2.5% this year.
If TSCL is correct, the 2.5% adjustment would mean an extra $48 a month in benefits for recipients.
Currently, the monthly benefit is around $1,920.
By law, the annual adjustment is based on the average inflation during July, August, and September as measured by the CPI for Urban Wage Earners and Clerical Workers.
The Bureau of Labor Statistics averages data for the three months, comparing it from the previous year’s data.
Once the COLA adjustment is announced, recipients will see the higher payments in January 2025.
ARE YOU ELIGIBLE?
To qualify for Social Security benefits, recipients must meet specific requirements.
Firstly, individuals must be 62 or older.
Plus, they must have worked and paid Social Security taxes for 10 years or more.
Your children may also be eligible for a monthly benefit because of your work if they are:
- Under age 18
- Age 18 or 19 and attend elementary or high school full time
- Are any age and have a disability
HOW TO SUPPLEMENT YOUR SOCIAL SECURITY
Here’s how to supplement your Social Security:
Given the uncertainty surrounding Social Security’s long-term future, it’s essential for workers to consider ways to supplement their retirement income.
Senior Citizens League executive director, Shannon Benton recommends starting early with savings and investing in retirement accounts like 401(k)s or IRAs.
- 401(k) Plans
- A 401(k) is a retirement account offered through employers, where contributions are tax-deferred.
- Many employers also match employee contributions, typically between 2% and 4% of salary, making it a valuable tool for building retirement savings.
- Maxing out your 401(k) contributions, especially if your employer offers a match, should be a priority.
- IRAs
- An Individual Retirement Account (IRA) offers another avenue for retirement savings.
- Unlike a 401(k), an IRA isn’t tied to your employer, giving you more flexibility in your investment choices.
- Contributions to traditional IRAs are tax-deductible, and the funds grow tax-free until they are withdrawn, at which point they are taxed as income.
Those seeking spousal benefits who have worked and paid Social Security taxes for 10 years or more will get a monthly benefit based on that work.
For more eligibility questions, head to the Social Security website.
