Once you enroll in Social Security, you typically don't have to do much else related to the federal program. Sure, if your address, bank account, or marital status changes, you'll want to update your information with the Social Security Administration. If you decide to withdraw your application (perhaps to continue working), you can do so within 12 months.
Other than those exceptions, the main thing retirees must do with Social Security is pay any taxes owed on benefits. Many retirees don't even have to do that if their income isn't high enough to pay federal taxes, and they live in a state that doesn't tax Social Security benefits.
However, there is one other thing that all retirees should do when it comes to Social Security. And you should do it on Oct. 10 -- just a few days away.
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Go online
The good news is that what retirees should do on Oct. 10 is super easy: You only need to go online. To be specific, go to the Social Security Administration website's Communications Corner.
You'll probably see several links to news releases as you scroll down on this web page. Sometime on the morning of Oct. 10, 2024, though, a press release will be issued that will reveal the Social Security cost-of-living adjustment (COLA) information for 2025.
This press release will tell you what the Social Security benefits percentage increase will be beginning in January 2025. It will likely state what the average dollar benefits increase will be next year as well.
In the past, the Social Security COLA announcements have also included information about other changes going into effect in the next year. For example, the press release announcing the 2024 COLA also discussed an increase to the Social Security payroll tax maximum.
Why Oct. 10?
In case you're wondering what's so special about the date of Oct. 10, the answer is that's when the Bureau of Labor Statistics (BLS) releases its inflation numbers for September. BLS doesn't announce September inflation numbers on Oct. 10 of every year. However, the agency releases its inflation data near the middle of each month.
Those inflation numbers include the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Social Security uses the CPI-W to calculate the annual COLA.
It's not only the September CPI-W that's used, though. Social Security will compare the average CPI-W for the third quarter of 2024 against the average for the third quarter of 2023. The percentage increase (rounded to the nearest tenth of 1%) will be the official 2025 Social Security COLA.
What will the Social Security COLA likely be?
You'll have to wait a few more days to find out the exact amount of the 2025 Social Security COLA. However, it's not too soon to get a feel for what it will likely be.
Based on the CPI-W numbers from July and August, the nonprofit senior advocacy group Senior Citizens League projects that the 2025 COLA will be 2.5%. This would amount to an average monthly benefit increase for retirees of $48.
A 2.5% increase is lower than the 3.2% COLA in 2024 (and much lower than the 8.7% received last year). However, it's not too far below the average benefits increase over the last 20 years of around 2.6%.
Check online on Oct. 10 to learn exactly how much your Social Security benefits will increase. But even if you don't, you'll find out relatively soon. The Social Security Administration usually begins notifying individuals about their new benefit amount by mail starting in December.
