All about Social Security changes in 2 months

Social Security recipients have until the end of November to take action before it's too late and they end up jeopardizing their monthly benefits. The Social Security program has many requirements and can be complicated, but there are certain dates retirees should put on their calendars. The annual Cost of Living Adjustment (COLA) often appears in early to mid-October and retirees know that their monthly benefits will be paid on a Wednesday depending on their birthday. All Social Security seniors should now make November 20th another memorable occasion as the year comes to a close.

Everything will change in Social Security in two months

After many months of waiting, the… Social Security Administration has finally announced the new COLA increase for 2025. Benefits increase annually to keep pace with inflation and maintain purchasing power. Retirees have enjoyed some nice benefit increases due to the recent rise in inflation. This year, inflation has finally slowed, hurting COLAs but slowing the rise in consumer prices and lowering the cost of living. According to the SSA, next year's COLA will be 2.5%, the lowest level in four years. As of September, the average Social Security payment to retirees was about $1,921, or $23,052 per year. The average monthly benefit increases to $1,969, or $23,628 per year, an increase of 2.5%.

Social Security recipients should consider creating an annual budget

Depending on when the pension began, how long they worked and how much they earned over the course of their career, each person will receive a different amount from January 2025 when the new pension payments begin. The following applies to pensioners: social security can make up a significant portion of their income. As of June 30 of this year, the SSA reported that about 90% of people over age 65 were receiving benefits that represented about 30% of their income. But consider that 12 percent of men and 15 percent of women who receive benefits rely on Social Security for 90 percent or more of their income, while 42 percent of women and 37 percent of women rely on monthly benefits for half or more of their income are.

To begin creating a budget, retirees may also find it useful to know how much Social Security they will receive the following year. Therefore, all retirees should open their own social security account by November 20th. Beneficiaries can use the free account to manage their current benefits, project their future benefits, check their eligibility status, obtain replacement Social Security cards, and obtain 1099 tax forms. Additionally, beginning in early December, retirees will be able to access their accounts to see their COLA notice and find out how much their benefits will increase the following year. However, retirees must create their account before November 20 to receive the notification.

The SSA will send a tax letter regarding the COLA increase for 2025

Many people want to avoid using the Internet whenever possible; Therefore, one of these accounts is unnecessary. SSA will be sending physical COLA notices throughout December. Financial budgetingOn the other hand, it can help you make smarter decisions, and knowing how much money you have to spend is an important aspect of budgeting. Therefore, it may be helpful to sign up for your My Social Security account before November 20th to receive future payments as quickly as possible. Here are some suggestions that may be useful to you if you decide to create a budget:

• Calculate your after-tax income to determine how much money you have to spend.
• Be conservative when estimating accommodation, transportation and food costs. Things rarely go as planned.
• Try to set aside some money each month for unforeseen needs.
• Track your progress to identify areas where you overspent and improve your predictions for the future.