Retirement: Adjustments to Social Security Benefits for 2025

Starting January 2025, social security benefits will increase by 2.5%, which corresponds to an average monthly increase of just under 50 USD for retirees. This adjustment is determined by the currently declining inflation rate, leading to a smaller increase compared to the previous year when there was an increase of 3.2%. To find out how much more one will receive in the coming year, users can create an account on the SSA website. After verifying their account, they can estimate how their retirement benefits might change depending on the retirement age. The specific adjustment details will be available in the news section of the SSA portal, with notifications via email or text enabled to ensure no updates are missed. Financial professionals recommend parking a portion of social security payments in interest-bearing accounts, as banks and credit unions offer high interest rates. Certificates of Deposit (CDs) can also be advantageous for retirees if they are willing to temporarily forego liquidity. Money market accounts also offer interest with flexible usage. The annual adjustment is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers of the Bureau of Labor Statistics, which is used for the calculation. A simple online account with “My Social Security” offers numerous features to keep track of retirement benefits and receive all information digitally.