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As we look ahead to 2025, Michigan's retirees will see a 2.5% increase in their Social Security benefits, marking a much-needed adjustment to help offset rising living costs. This follows a 3.2% increase in 2024, bringing a continued focus on supporting older adults who depend on these benefits to manage their daily expenses.
What the 2025 COLA Increase Means for You
According to the Social Security Administration (SSA), the 2.5% cost-of-living adjustment (COLA) for 2025 will increase monthly Social Security benefits by about $50 on average. This adjustment affects nearly 68 million Social Security beneficiaries and approximately 7.5 million people receiving Supplemental Security Income (SSI).
While inflation has started to cool, the increase will provide much-needed support to those who feel the impact of rising costs on essential items such as groceries, gas, and healthcare. AARP Chief Executive Officer Jo Ann Jenkins emphasized that while this adjustment offers relief, many older adults still struggle to make ends meet. Social Security remains the primary income source for 40% of older Americans, highlighting the importance of safeguarding this important program.
Important Updates for Social Security Beneficiaries
- Notification of New Benefit Amounts: Social Security beneficiaries will start receiving notifications about their new benefit amounts by mail in early December.
- Access Your COLA Notice Online: Individuals with a personal my Social Security account can view their COLA notice online, which is more secure and faster than receiving it by mail. Be sure to set up your account by November 20 to access these updates and to receive alerts when new information is available.
- Changes to Earnings Subject to Social Security Tax: Beginning in January 2025, the maximum amount of earnings subject to Social Security tax will increase to $176,100, up from $168,600.
Stay Connected with AARP Michigan
Stay informed about the latest Social Security updates and join AARP Michigan in advocating for a stronger future for all retirees. To receive timely updates and learn how you can take action, text JOIN to 22777 on your phone. Together, we can make a difference by urging Congress to prioritize the security of Social Security benefits for today’s older adults and the generations that follow.
For more details on the Social Security COLA for 2025 and additional information on how these changes might affect you, visit SSA’s official COLA page or visit AARP Michigan online for the latest resources and advocacy efforts.
