Social Security 2025 COLA Announcement: Key Numbers Workers Must Monitor
Understanding the 2025 COLA Announcement
Social Security is set to unveil its 2025 Cost of Living Adjustment (COLA) announcement soon. This forward-looking measure directly impacts retirees and workers alike. Since Social Security evaluates the Average Wage Index (AWI), it is crucial to understand how this number influences potential wage base limit adjustments.
What is the Average Wage Index (AWI)?
The AWI reflects wages across all industries and is used to determine increases in wage base limits for Social Security. For instance, the national AWI for 2022 was $63,795.13.
Why Should Workers Monitor the AWI?
iMonitoring the AWI is essential for workers as it signifies potential changes in benefits and should be on everyone's radar.
- Important: If the AWI increases, it could indicate a corresponding rise in the maximum taxable earnings for Social Security.
- Key Point: Keeping track of the AWI allows individuals to prepare for future financial changes.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.