In the next year, Social Security benefits will go up for thousands of Mississippians, including nearly 500,000 retirees who receive them. Social Security Administration (SSA) said on October 10 that next year, they would raise the cost of living adjustment by 2.5% for everyone who gets it.
In January, Social Security retirement benefits will go up by an average of $50 a month, according to government officials. Commissioner of Social Security Martin O’Malley said in October that SSI payments and Social Security benefits would go up in 2025. This will help millions of people pay their bills even though inflation has gone down.
Mississippi beneficiaries will receive an increase from the SSA in their Social Security benefits
The COLA increase has been about 2.6% on average over the past ten years, with a high point of 8.7% in 2023. There was a 3.2% COLA in 2024. More than 68 million people who get Social Security will get the 2.5% increase.
About 7.5 million people who get Supplemental Security Income (SSI) started getting more money yesterday. The federal agency says that as of December 2023, more than 469,500 retirees in Mississippi were getting Social Security benefits.
These benefits were given to about 106,000 people, and disability payments were made to about 59,000 children, 43,000 parents and widows, and 14,000.
Also, beneficiaries should know that they can start getting Social Security retirement benefits as early as age 62. But your Social Security benefits will be less if you start getting them before your “full” retirement age.
The full retirement age has changed over time, going up for younger age groups. In this case, beneficiaries should have claimed benefits between 1943 and 1954 if they chose to retire at age 66.
The full benefit amount goes up for people born in 1955 who started getting benefits at age 66 and 2 months, 1956 who started getting benefits at age 66 and 6 months, 1957 who started getting benefits at age 66 and 6 months, 1958 who started getting benefits at age 66 and 8 months, 1959 who started getting benefits at age 66 and 10 months, and 1960 who started getting benefits after age 67.
Remember that if you wait to start getting your Social Security benefits until you are 70 years old after you have fully retired, your benefit amount will go up.
How does the federal agency determine the cost of living adjustment every year?
The Social Security Act says that the annual cost of living adjustment should be linked to the rise in the Consumer Price Index for Urban Wage Earners and Clerical Workers.
This is what the Bureau of Labor Statistics says. Social Security has shown yearly growth since 1975. Before that, increases needed to be approved by Congress, which did not happen every year.
So far this year, the cost of living adjustment has been the smallest since 2021, when it was 1.3%, according to the Bureau of Labor Statistics. Based on Social Security’s past data, here are the most recent cost of living adjustments (COLA) increases in the last ten years:
| Year | COLA increase |
| 2015 | 1.70% |
| 2016 | 0% |
| 2017 | 0.30% |
| 2018 | 2% |
| 2019 | 2.80% |
| 2020 | 1.60% |
| 2021 | 1.30% |
| 2022 | 5.90% |
| 2023 | 8.70% |
| 2024 | 3.20% |
How much tax should beneficiaries pay in Social Security benefits?
In January of each year, Social Security changes the amount of money people get each month based on how much their average pay goes up. The planned raise for this raise will lead to a rise in the highest wage that is taxed by Social Security.
This rise could happen anywhere from $168,600 to $176,100. Up until that point, self-employed people paid 12.4% of wages, while both employers and workers paid 6.2%. Interest is part of the $1,351 billion that the OASI and DI trusts will get in 2023. This includes $67 billion in interest, $51 billion in benefit tax, and $1,233 billion in net payroll tax.
Can beneficiaries earn additional money besides Social Security benefits?
Yes, but if you make more than $62,160, you might have to pay taxes on it. People who reach their full retirement age (FRA) in 2025 will get the most money, which is $62,160. The SSA will take away one dollar from a person’s Social Security benefits for every three dollars they earn over $62,160 by the month they reach FRA. However, employees who are at least “full” retirement age do not have a limit on how much they can earn during the whole year.