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All Social Security retirees should do this by November 20th


Several dates throughout the year are important for Social Security retirees.

The Social Security program has many rules and can be complex, and there are specific dates that retirees should mark on their calendars. For example, retirees know that they will receive their monthly benefits on a Wednesday, depending on when their birthday is, and that the annual cost of living adjustment (COLA) typically occurs in early to mid-October.

As the year comes to a close, all Social Security retirees should remember November 20 as another date to remember. Here’s why.

Your COLA 2025

In October, the Social Security Administration (SSA) announced the 2025 COLA. Benefits are increased every year to maintain purchasing power despite inflation. Inflation has skyrocketed recently, so retirees have seen some nice benefit increases. Inflation has finally slowed this year, which is bad for COLAs, but slows the rise in consumer prices, ideally making the cost of living more bearable.

The SSA announced that next year’s COLA will be 2.5%, the lowest COLA in four years. The average Social Security check for retirees was about $1,921 in September, or $23,052 per year. The 2.5% increase brings the average monthly benefits to $1,969, or $23,628 per year.

In January 2025, the new benefit payments will begin, but everyone will receive different amounts depending on when they started claiming benefits, how many years they worked and how much income they earned over the course of their career. Social Security can make up a significant portion of a retiree’s income.

Nearly nine in 10 people over 65 were receiving benefits as of June 30 of this year, according to the SSA, and the benefits account for about 30% of income for those over 65. However, note that 37% of men and 42% of women receiving benefits rely on Social Security for at least half of their income, while 12% of men and 15% of women rely on Social Security for at least 90% of their income.

It may be helpful for retirees to know the amount they will receive from Social Security for the following year so they can begin budgeting. For this reason, all retirees should create their personal My Social Security account by November 20th. The account is free and allows retirees to request a replacement Social Security card, obtain a 1099 tax form, check the status of a claim, estimate their future benefits and manage their current benefits.

Retirees can also view their COLA notice on the account and see how much their benefits will increase next year starting in early December. However, to receive the notification, retirees must create their account by November 20.

A physical letter will still be sent

Many people avoid the Internet if possible, so you don’t need one of these accounts. SSA will be sending physical COLA notices throughout December.

However, budgeting can lead to better decision making, and an important part of budgeting is knowing how much money you can spend. So if you have a few extra minutes, it might be worth opening a My Social Security account by November 20th to see your future benefits as quickly as possible.

If you are planning to create a budget, here are some tips that can help you in the process:

  • Calculate your after-tax income to know how much money you have to spend.
  • Be conservative when forecasting accommodation, transportation and food costs. Things rarely go according to plan.
  • Try to save some money each month for unexpected expenses.
  • Track your progress to see where you overspent and improve your predictions for the future.

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