The Social Security Administration will announce the 2025 cost-of-living adjustment (COLA) on Oct. 10, 2024. Until then, you can only make your best guess as to what it’s going to be. The existing data suggests the COLA will be lower than what program recipients have seen in recent years.

That’s disappointing for seniors who are struggling with rising costs and few other sources of retirement income. But before you start worrying, it’s important to note that everyone sees their checks increase by a slightly different amount. Here’s how to know if you’ll get an above-average boost next year.

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How far will the COLA go for you?

Social Security beneficiaries see their checks grow by the same percentage when the new COLA goes into effect. But since everyone receives different benefit amounts, this means the dollar-value increase varies.

The average Social Security check for retired workers as of Aug. 2024 is $1,920 per month. That means if you’re getting more than that amount right now, you’ll receive an above-average 2025 COLA by dollar value.

The latest estimates from The Senior Citizens League put the 2025 COLA at around 2.5%. This would raise the $1,920 average check to $1,968 per month — a $48 increase. As long as the COLA doesn’t come in under this estimate, you can expect $48 or more in additional monthly Social Security income if your current checks are over the $1,920 average.

If you’d like to get a ballpark of what your 2025 checks could look like, add an extra 2.5% to your current checks. Just keep in mind this is only an estimate with the official number coming Oct. 10.

What if the COLA isn’t enough?

It’s highly likely the 2025 COLA isn’t going to be enough to combat the increases in living costs that some retirees have seen over the last year. It’s disheartening, and many put the blame on the way the government calculates COLAs in the first place. Unfortunately, only the government can change that, so retirees will need to find other ways to cover what Social Security doesn’t.

Obviously, personal savings are great if you have them, but many lack adequate retirement savings, forcing them to rely on other sources of income.

Going back to work, though far from ideal, can provide you with a steady monthly paycheck. And you don’t have to return to whatever you did before retirement. Many retirees seek out more flexible opportunities that align with their interests. Part-time and remote positions can further add to your options. Remember, you only need to earn enough to supplement your Social Security checks and personal savings.

You might also qualify for other government benefits that can help you with your essential costs, like food, housing, utilities, and healthcare. It takes time for the government to review these applications, though, so it’s best to apply as soon as possible if you believe you may need them in 2025.

Once the 2025 Social Security COLA is announced, you can prepare your budget for next year if you haven’t already done so. Get a plan in place before January so you know exactly how much money you can withdraw from your personal savings and how much you’ll get from other sources to cover your expenses.

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