In 2025, we should be expecting Social Security changes to the payments. Beneficiaries should prepare to see adjustments in their monthly checks due to the annual cost-of-living adjustment (COLA). However, the official COLA increase has not been announced yet, and estimates are circulating about what beneficiaries can expect in their payments starting in January. Here’s a breakdown of all you need to know about your Social Security payment dates, potential changes due to the COLA increase, and how to plan for 2025.
When Will You Receive Your 2025 Social Security Payment?
In most cases, Social Security beneficiaries receive their payments based on their date of birth. Here’s how the payment schedule works for 2025:
- Birthdays from the 1st to the 10th: Payments are typically made on the second Wednesday of each month.
- Birthdays from the 11th to the 20th: Payments are made on the third Wednesday of the month.
- Birthdays from the 21st to the 31st: Payments are made on the fourth Wednesday.
However, there are exceptions to this rule. “For those that started receiving Social Security benefits before May 1997, or if you receive both Social Security and Supplemental Security Income (SSI), your Social Security payments will be made on the 3rd of the month, while your SSI payment will arrive on the 1st.”.
It’s also important to note that if your payment date falls on a weekend or a federal holiday, you’ll receive your money on the nearest weekday before that date.
Keynote: It is best to know that if your payment falls on a weekend or a federal holiday, you will be paid on the closest weekday before that day. You will not be paid during the weekend.
What Will the Average Social Security Check Be in 2025?
As earlier stated, “the COLA increase for 2025 has not been announced yet.” However, economist David Payne from Kiplinger estimates that the COLA for 2025 could be around 2.5%. Based on this estimated increase, the average monthly Social Security payment for retirement benefits will see a raise in order to account for inflation.
As of August 2024, the average Social Security check for retirees was about $1,920.48 per month. If the estimated 2.5% COLA increase becomes true, then beneficiaries can expect to see an additional $48 that will be added to their monthly checks. This will bring the new average monthly payment to approximately $1,968.48. Over the year, this increase would total about $576.
How COLA Is Determined
Every year the Social Security Administration (SSA) will calculate the cost-of-living adjustment based on inflation data from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), furthermore, this index tracks the cost of goods and services that impact daily living expenses. The major goal of the COLA increase is to ensure that Social Security beneficiaries have the ability to maintain their purchasing power even as the prices of goods and services rise.
If you are wondering what 2025 COLA is, then you should know that it has not been announced yet; it will be announced in October 2024, so soon enough you will hear about it from credible sources.
What to Expect in 2025
While it may seem like a small increase, the 2.5% COLA adjustment is important for maintaining your financial stability in a rising inflation environment. Keep an eye out for the official COLA announcement in October to know exactly how much you’ll receive in 2025. If the predicted COLA holds, you can expect a slight boost in your benefits, with the average payment approaching $1,968 per month.
