In the United States, there are more than 71 million people who use Social Security benefits to survive and meet their living expenses. These include retirees, veterans, dependents, and surviving relatives of beneficiaries.
Social Security benefits are calculated based on a worker’s earnings history, at least initially, but an increase called a cost of living adjustment (COLA) must be made each year. This annual change is announced every October and applies from the following January 1st. This adjustment is intended to ensure that Social Security benefits do not lose purchasing power in the face of inflation, and the calculation takes the CPI-W cost of living index to determine when goods and services rose.
Estimated Cost of Living (COLA) Adjustment for 2025 Will Fall Short
According to the most recent estimate by The Senior Citizens League, by 2025 the cola increase will be just 2.57%, substantially lower than the 3.2% in 2024 and 8.7% in 2023. That said, the COLA that is projected to be implemented will add approximately $50 on average per month to beneficiaries.
The study ensures that this increase is insufficient since the analyses warn that a retiree would need at least an additional $370 per month to maintain the same purchasing power as in 2010: This means that from then until 2024, retirees and other beneficiaries of Social Security were gradually losing purchasing power. This estimate does not take into account potential increases in Medicare Part B premiums, so the COLA increase could be even more insufficient.
Average Social Security Payments in August 2024
Recipients’ payments of different types of Social Security benefits vary based on several factors, including years of work, earnings during those years, and the resulting total Social Security taxes they paid, also subject to the age at which they decided to retire.
These are the average benefits paid in the month of August 2024, which just ended:
- Retired workers: approximately $1,907 per month
- Retired couples (filing jointly): about $3,303 per month
- Survivor benefits: average $1,509.50 per month
- Spouses of retired workers: Average of $910 per month
- Children of retired workers: Average of $892.39 per month
- SSI recipients (individuals): average $943 per month
- SSI recipients (couples): average $1,415 per month
How to Calculate Social Security Benefits for Free
You can calculate how many benefits you are entitled to using the free online calculator that the Social Security Administration (SSA) has on its website, by clicking here: https://www.ssa.gov/OACT/quickcalc/. Please note that this is just an exercise, because the final amount you will receive will be calculated taking into account the aforementioned factors.
Also, you can use North State Bank’s calculator to adjust payments for inflation, here. Remember that the most recent forecast indicates that benefits will rise 2.57%, but there is still a month of data left before the SSA determines the final amount.
September Social Security Dates
Here are the Social Security payments for September 2024, as established by the SSA:
- Tuesday, September 3: Social Security payments for those who received benefits before May 1997 or those who receive both Social Security and SSI.
- Wednesday, September 11: Social Security payments for beneficiaries born between the 1st and the 10th of the month.
- Wednesday, September 18: Social Security payments for beneficiaries born between the 11th and the 20th of the month.
- Wednesday, September 25: Social Security payments for beneficiaries born between the 21st and the 31st of the month.
Remember that Supplemental Security Income (SSI) beneficiaries, that usually receive their deposit on the first day of every month, were paid on August 30, since September 1st was Sunday.