On October 10, 2024, the Social Security Administration (SSA) confirmed the 2025 Cost of Living Adjustment (COLA) increase at 2.5%.
This announcement followed the release of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) data for September.
While the 2.5% increase was lower than many had hoped, it still provides some financial relief to various beneficiaries, including survivors receiving Social Security payments.
Survivor benefits, which include payments to widows, widowers, and children of deceased workers, will also see an increase after the 2025 COLA adjustment. Here’s what you need to know about how survivor benefits will change and the estimated average payments.
2025 COLA Increase for Survivors
When most people think of Social Security benefits, retirement payments often come to mind. However, survivor benefits are another crucial component of Social Security, providing financial assistance to families after the loss of a loved one.
With the 2025 COLA increase, survivor benefits will rise, though the boost is smaller than in previous years due to lower inflation.
Survivor Benefits for a Widowed Mother and Two Children
According to the SSA, the current average monthly payment for a widowed mother with two children is around $3,669.
After the 2025 COLA increase of 2.5%, the new estimated payment will be $3,761, reflecting an average increase of $92 per month.
This increase helps these families manage rising costs, but it may feel modest considering inflationary pressures. Over the course of a year, this COLA boost will result in $1,104 extra for a family of this size.
Payments for an Aged Widow or Widower Alone
For aged widows or widowers without dependent children, the average payment is currently about $1,788. After the 2025 COLA increase, this amount will rise to approximately $1,832, marking an increase of $44 per month.
While $44 extra per month may seem small, it adds up to an additional $528 annually.
These payments are vital for elderly individuals living on fixed incomes, helping to cushion the impact of increasing costs for essentials like healthcare, utilities, and food.
How to Calculate Your New Payment After the COLA
If you receive survivor benefits and want to calculate your new payment amount after the COLA increase, here’s a simple method to do it:
For every $100 you currently receive, you’ll get an extra $2.50 (due to the 2.5% increase).
For example, if you receive $1,000 a month, multiply $1,000 by 2.5%, which gives you $25 extra. Therefore, your new monthly payment will be $1,025.
If your benefit amount is significantly different from the averages provided, you can log into your my Social Security account to check your specific payment amount after the 2025 COLA.
Understanding the COLA and Survivor Benefits
The Cost of Living Adjustment (COLA) is determined annually based on the CPI-W, which measures changes in the cost of goods and services.
COLA helps ensure that Social Security payments keep up with inflation, making it crucial for beneficiaries who rely on these payments for basic living expenses.
For survivors, COLA adjustments provide essential financial support, especially for widowed parents with young children or elderly individuals without supplemental income.
Though the 2.5% increase may not be as high as expected, it still offers much-needed assistance in a time of rising living costs.
While the 2025 COLA increase of 2.5% is less than many had hoped for, it will still provide a financial boost to those receiving Social Security survivor benefits.
For a widowed mother with two children, the average increase will be $92 per month, while an aged widow or widower will see an additional $44 per month.
These changes, although modest, are critical in helping families and elderly survivors cope with inflation and rising expenses. Beneficiaries are encouraged to use their my Social Security account to check their exact updated payment amounts.
FAQs
What is the 2025 COLA increase for Social Security?
The 2025 COLA increase is 2.5%, as confirmed by the SSA.
How much will a widowed mother with two children receive after the COLA increase?
A widowed mother with two children will receive an estimated $3,761, up from $3,669.
How much will an aged widow or widower alone receive after the COLA increase?
An aged widow or widower alone will receive around $1,832, up from $1,788.
How do I calculate my new Social Security payment after the 2025 COLA?
Multiply your current benefit by 2.5% to determine the additional amount. Add that to your current benefit to find the new total.
Where can I check my updated Social Security payment?
You can check your new payment through your my Social Security account online.
