DECEMBER 2024 Newsletter: Social Security Says 2.5% COLA in 2025

Social Security beneficiaries will see a 2.5% increase in their benefit payments in 2025, according to the Social Security Administration.

The annual cost of living (COLA) adjustment will affect more than 72.5 million Social Security and Supplemental Security Income (SSI) beneficiaries. This year, Social Security beneficiaries will get a new one-page COLA summary that will detail the new benefits and the exact date the 2025 adjustment will start.

Just how much of an increase will depend on the size of the Medicare Part B premium for 2024, which is projected to increase to $185 a month in 2025, up from $174.70. Typically, Medicare Part B payments are deducted from Social Security benefits in advance.

Social Security plays an important role in retirement. In fact, the 2024 Employee Benefit Research Institute report found that three out of five retired Americans say Social Security is a major source of income in their retirement. While it’s been known for months that the 2025 increase would be smaller than the 2023 and 2022 increases, the final number may impact your overall financial picture.

If that’s the case, please let us know as soon as possible. Your retirement income needs may change over time, so let’s not miss an opportunity to make any small adjustments needed to make you feel a little more comfortable as the calendar turns to 2025.

^{CNBC.com, October 10, 2024}

^{ThinkAdvisor.com, October 10, 2024}

• It is with mixed emotions that we announce that effective January 1, 2025, one of our founding partners, Elizabeth Sampson, will be substantially scaling back her duties at Concord River Financial (CRF) after a remarkable 34-year career. In her new capacity, Liz will assume the role of Founder | Partner Emeritus, primarily serving as an advisor to our partners and staff. While this will be a significant adjustment for all of us at CRF, we could not be happier for her to begin enjoying this much-deserved stage of her life.
  
  
• Alongside Liz,Mary Ann Schwartzhas announced her retirement after six years as a valued Administrative Assistant and an integral part of our CRF team. Mary Ann will be deeply missed, but we are so excited for all of her new adventures ahead. Please join us in congratulating Mary Ann and wishing her happiness, good health, and fulfillment in the years to come.
  
  
• Effective December 20, 2024,Petra Conboywill be leaving Concord River Financial to relocate and be closer to her family. Petra has been a dedicated assistant to advisorMary Butler-Aldrichfor six years and a part of our CRF family for almost two years. While we are saddened to see Petra go, we wholeheartedly support her decision and hope you join us in wishing her the very best in this next chapter of her life.
  
  
• 2025 is on the horizon, and all of us at CRF would like to take this moment to express our heartfelt gratitude for your business. We hope you and your loved ones have a wonderful holiday season and upcoming year filled with new possibilities, opportunities, and good times.

How to Verify Your Identity When Calling the IRS

When calling the IRS, you can expect them to verify your identity before delving into personal information. Here’s what you’ll need to verify your identity:

• Social Security number
• Birthdate
• An Individual Taxpayer Identification Number if you have one instead of your SSN
• Your filing status
• Your prior tax return. You may need information from your prior year’s return to answer certain questions.
• A copy of the tax return you’re calling about
• Any letters or notices you’ve received from the IRS

Important note: the IRS will only ask for this in documents or online.Never offer this info to someone who calls you and says they are from the IRS.

Having all this information handy before you call the IRS will make the process faster because IRS phone operators will only speak with the taxpayer or a legally designated representative.

^{This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.}

^{Tip adapted from IRS.gov}

Beware of the Fake Charity Scam

There are so many scams out there. One of the most heartless is taking advantage of people who want to give money to a legitimate charity, especially after a tragedy or disaster. Scammers can set up fake organizations to take advantage of people’s generosity. 

These scams are usually over the phone but some are perpetrated via email, and while the organization may sound legitimate, the person on the other end might demand a donation immediately. Remember, a charity will happily receive a donation anytime, so you shouldn’t feel pressured. 

You can research charity organizations using the IRS Tax Exempt Organization Search tool—this will help you narrow down a list of legitimate charities. You may even be able to claim a deduction on your tax return.

^{This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.}

^{Tip adapted from IRS.gov}

I am only one syllable long and too heavy for one person to lift, but if you reverse me, I am not. What am I? 

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Last Month's Riddle:Anna, a supermarket clerk, has not slept during any of the past six nights, yet she is not tired. How can this be?

Answer: Anna sleeps in the daytime.