If you rely on Social Security or Supplemental Security Income (SSI) payments, then the 31st of December 2024 should be an important date for you. This day plays a crucial role in connection with how you receive your payments from the Social Security Administration (SSA), especially with the new COLA adjustments for 2025.
What is the COLA adjustment for 2025?
Social Security benefits are adjusted for inflation each year, referred to as the Cost of Living Adjustment (COLA). For 2025, a 2.5% COLA is determined. This means that monthly benefits will go up slightly because of increased living costs.
Here is what you should know:
- This 2.5% gain equals about $48 more per month for the average beneficiary.
- Being one of the smallest increases in the last several years, considering the fact that COLAs are linked with the inflation rates,
- Changes apply to all recipients of Social Security benefits, whether you are retired, or you are receiving SSI benefits, or you are disabled.
Read more: Important news for social security recipients: no payments on the fourth Wednesday in December
Why is December 31 important for social security recipients?
December 31 is particularly significant for those receiving Supplemental Security Income (SSI). Here is why:
- Early payment: SSI recipients typically receive their benefits on the first of each month. However, since January 1 is a federal holiday, payments are pushed forward to December 31.
- COLA increase included: The payment issued on December 31 will already reflect the 2.5% COLA increase, giving recipients a slight financial boost before the new year begins.
This early payment benefits around 7.5 million people who depend on SSI, ensuring they have access to their funds without delays caused by the holiday schedule.
When will other Social Security recipients see the COLA adjustment?
If you are receiving Social Security benefits right now, other than SSI, the timing of your payments will depend on your date of birth. Here are examples based on the 2025 schedule:
- January 8: Payments will be made to people born between the 1st and the 10th of the month.
- January 15: Payments will be made to those born between the 11th and the 20th.
- January 22: Payments will be made to persons born between the 21st and the 31st.
Each of these payments will apply the new 2025 COLA adjustment, ensuring you and all beneficiaries will see the increase by mid-January.
How to confirm your new benefit amount
To know exactly how much you will receive after the COLA adjustment, keep an eye out for any information from the Social Security Administration (SSA). Notifications are typically sent in early December and can be accessed in two ways:
- Mail: Look for a letter detailing your updated benefits.
- My Social Security account: If you have an online account, you can view your updated benefit amount there. You can also set up email or text alerts to notify you when new messages are available.
Make sure your account is set up by November 20, 2024, to access this information online.
What does the COLA adjustment mean for you
The COLA is meant to provide support to you, allowing you to keep up with inflation. While the 2025 COLA increase may not be as much as in the past few years, it is still important in maintaining your purchasing power, especially with your rising daily expenses, such as groceries and utility bills. It is particularly beneficial for SSI recipients to receive the adjusted payment on December 31st, as it serves as a welcome financial cushion for the new year. For others, first payments will land in January.
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