The Social Security Administration (SSA) has announced a 2.5% Cost-of-Living Adjustment (COLA) for 2025, effective January 1, 2025. This adjustment aims to help beneficiaries maintain their purchasing power amid inflation. The COLA is determined by comparing the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of the current year to the same period in the previous year.
While the Social Security Administration sets its annual payment schedule well in advance of the year, the payment dates could take some seniors by surprise this month, for both better and worse.
Impact on Benefits:
- Average Benefit Increase: The typical monthly Social Security benefit for retired workers will rise by approximately $50, bringing the average payment to $1,976.
- Supplemental Security Income (SSI): To see their payments adjusted to reflect the COLA, with the first increased payment arriving on December 31, 2024.
December 2024 Payment Schedule:
- The SSA issues payments based on beneficiaries’ birth dates:
- SSI Recipients: Typically receive payments on the first of each month. However, because January 1, 2025, is a federal holiday, the January payment will be disbursed on December 31, 2024.
- Birth Dates 1st–10th: Payment on December- Birth Date 11th–20th: Payment on December 18, 2024.
- Birth Dates 21st–31st: Payment on December 24, 2024.
- However, there is one exception: People getting their January SSI checks on December 31 will see the new COLA reflected in that payment, according to the Social Security Administration.
Here is the updated schedule for Social Security payments reflecting the 2025 COLA:
- Jan. 3, 2025: Individuals who began claiming Social Security before May 1997 or who receive both Social Security and SSI will see their increase.
- Jan. 8, 2025: Recipients born on the 1st-10th of the month.
- Jan. 15, 2025: Recipients born on the 11th-20th of the month.
- Jan. 22, 2025: Recipients born on the 21st-31st of the month.
Important Considerations:
- Early Payments: Some beneficiaries may receive payments earlier than usual due to weekends or federal holidays. For instance, if the regular payment date falls on a weekend or holiday, the payment is typically made on the preceding business day.
- Notification of Changes: Beneficiaries can access their COLA notices online through their “my Social Security” accounts in early December. This platform provides details about benefit adjustments and payment schedules.
The SSA’s adjustments and payment schedules are designed to ensure beneficiaries receive timely payments that reflect current economic conditions, helping them manage living expenses effectively.
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