For U.S. retirees relying on Social Security, staying on top of key deadlines and updates is crucial for effective financial planning. One such deadline is November 20, 2024, when the Social Security Administration (SSA) encourages retirees to create or log into their “my Social Security” account. This step is vital for accessing important 2025 updates, including the Cost-of-Living Adjustment (COLA), which helps beneficiaries manage their benefits more efficiently.
Understanding the 2025 COLA: What Retirees Should Know
The SSA has announced a 2.5% COLA for 2025, marking the smallest increase in four years. This adjustment reflects a moderation in inflation, giving retirees a modest benefit increase:
- Average Monthly Benefit (2024): $1,921
- Average Monthly Benefit (2025): $1,969
- Annual Increase: $576
While the increase is lower than in previous years, it still helps retirees keep up with the rising cost of living. The exact amount a retiree will receive depends on factors like their lifetime earnings and the age at which they began collecting benefits.
Why the November 20 Deadline Matters
Retirees should make sure to create or log into their “my Social Security” account by November 20, 2024. This will allow them to:
- Access 2025 COLA Information: View detailed updates about payment adjustments starting in December.
- Plan for 2025: With accurate January payment details, retirees can effectively plan their budgets for the upcoming year.
Missing this deadline could delay access to important benefit updates and create confusion when planning for the future.
Benefits of Using the “my Social Security” Portal
The “my Social Security” portal provides numerous features that can help retirees manage their benefits easily:
- Request Replacement Cards: Order a new Social Security card if needed.
- Tax Documents: Access your 1099 form for filing taxes.
- Track Applications: Check the status of any applications or appeals.
- Estimate Future Benefits: Calculate future benefit amounts if you haven’t yet retired.
- Secure Account Management: Safely update personal information and manage your benefits.
Social Security’s Impact on Retirement Income
For many retirees, Social Security is a critical source of financial support. According to the SSA:
- 90% of individuals over 65 receive Social Security benefits.
- Social Security typically accounts for about 30% of retirees’ income, but for many, it provides a much larger share.
- 37% of men and 42% of women depend on Social Security for at least half their income.
- For 12% of men and 15% of women, Social Security is nearly their sole source of income.
Given the essential role Social Security plays in retirement finances, even a modest COLA increase can have a significant impact on retirees’ financial stability.
Planning for the 2025 COLA
Although the 2.5% COLA increase may be smaller than in previous years, it ensures that benefits remain in line with inflation. Retirees should use this information to adjust their budgets for 2025, planning for expected living expenses or setting aside savings for unexpected costs.
By creating or updating a “my Social Security” account by November 20, retirees can stay informed, easily access benefit updates, and take charge of their financial futures. This proactive step helps ensure that retirees are well-prepared to manage their income and enjoy a stable retirement.
