WHAT TO KNOW ABOUT THIS YEAR'S SOCIAL SECURITY COST-OF-LIVING ADJUSTMENT

Tens of millions of older Americans will see an increase in benefits this January when a new cost-of-living adjustment is added to Social Security payments.

The 2.5% raise is intended to help meet higher prices for food, fuel, and other goods and services. The average recipient will see an increase of about $50 per month, according to agency officials. Social Security recipients received a 3.2% increase in their benefits in 2024, and some retirees are concerned that this year’s increase is not big enough to meet their needs.

The Social Security Administration 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. Supplemental Security Income provides monthly payments to adults and children who have income below specific financial limits and qualify to receive Social Security benefits.

Here’s what to keep in mind:

HOW DOES SOCIAL SECURITY WORK?

About 72.5 million people, including retirees, disabled people and children, get Social Security benefits.