Nearly 2 million retirees and thousands of others in Michigan will receive increased Social Security benefits starting January 1, 2025, as part of a 2.5% cost-of-living allowance (COLA). On average, this translates to a $50 monthly increase for most recipients.
The COLA is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers, set by the Department of Labor’s Bureau of Labor Statistics. This year’s increase is the smallest since January 2021, at just 2.5%.
Michigan residents can check their benefits online through the Social Security Administration’s website or by setting up text or email alerts. The administration also provides a message center with information on Medicare changes for 2025.
For workers who make over $62,160 in a year, Social Security taxes may apply to earnings above that amount. However, there is no limit on earnings for those who are eligible for full retirement benefits or older.
Michigan does not tax Social Security benefits, unlike some pensions, but the federal government does tax certain benefits.
Source: https://eu.lansingstatejournal.com/story/news/local/michigan/2024/12/17/social-security-cola-2025-michigan-benefits-increase/77043334007