Social Security Announces 2.5 Percent Benefit Increase for 2025

On October 10, 2024, the Social Security Administration announced that Americans will increase a 2.5 percent cost of living increase in 2025. A fact sheet linked to the preset release shows that the monthly SSI rate for an individual will increase from $943 to $967.

This COLA means the following (estimates) should apply beginning January 1, 2025:

• Medicaid Income Cap: $2,901
• Monthly Maintenance Needs Allowance
  • Minimum: $2,527
  • Maximum: $3,949.50
• Community Spouse Resource Allowance
  • Minimum: $31,599
  • Maximum: $157,994
• Home Equity Limits:
  • Minimum: $729,800
  • Maximum: $1,097,775

Other than the SSI rate increase, these numbers are estimates. The Centers for Medicare and Medicaid Services usually published their official rate increases in mid-November. Social Security’s COLA is based on the increase in the Consumer Price Index (CPI-W) from the third quarter of 2023 through the third quarter of 2024.