The Social Security Administration (SSA) has announced three key dates for beneficiaries regarding the 2025 Cost of Living Adjustment (COLA). Retirees, survivors, disabled individuals, and Supplemental Security Income (SSI) recipients should mark their calendars, as these dates will affect their benefits for the upcoming year.
The COLA, which is an annual adjustment aimed at keeping up with inflation, will likely see a 2.5% increase in 2025 according to estimates from The Senior Citizens League (TSCL). Here’s a breakdown of the important dates and what beneficiaries can expect.
Announcement
On October 10th, the SSA will officially announce the 2025 COLA percentage. The calculation is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), specifically comparing data from the third quarter of 2023 to the same period in 2024. This COLA adjustment is designed to help beneficiaries cope with rising living costs. While TSCL has projected a 2.5% increase, the actual figure will be confirmed in this announcement.
Once the official number is out, beneficiaries can start calculating the approximate increase in their monthly payments. For instance, a retiree currently receiving $2,000 per month could expect an increase of $50 if the COLA is indeed 2.5%. While the exact amount will depend on individual circumstances and the full retirement age (FRA), it’s a good starting point to plan your 2025 finances.
Personalized Notices
The next important milestone arrives in early December when retirees, survivors, disabled individuals, and SSI recipients will receive personalized notices from the SSA. These letters will contain the exact dollar amount of the 2025 benefit increase based on the finalized COLA.
If you have an online My Social Security account, you could receive your COLA notice as early as mid-November through your Message Center. This is a faster and more secure way to get your notice compared to waiting for mail delivery. For those opting for mailed notices, expect them throughout December. However, given the sheer number of recipients, SSA suggests waiting until January 2025 before contacting them if you don’t receive yours.
COLA Timeline
| Date | Event | Action for Recipients |
|---|---|---|
| October 10, 2024 | Official 2025 COLA announcement | Note the new COLA percentage for 2025. |
| Early December 2024 | Personalized COLA notices sent | Check My Social Security account or wait for the mail. |
| January 8, 2025 | First COLA-increased Social Security checks | Receive updated benefits based on the COLA adjustment. |
First Increased Payments
Although the COLA applies to your December 2024 benefits, the first increased payment won’t arrive until January 2025. Social Security payments are typically distributed in the month following the period they cover. The exact date of your payment depends on your birth date:
- Born between the 1st and 10th: Payments will arrive on January 8, 2025.
- Born between the 11th and 20th: Payments will arrive on January 15, 2025.
- Born between the 21st and 31st: Payments will arrive on January 22, 2025.
Recipients of SSI benefits, however, will receive their increased payments earlier—on December 20, 2024. This is because the regular payment date of January 1st falls on a holiday, so the SSA will release these funds on the preceding business day.
What to Expect
For those relying on Social Security benefits, these three dates—October 10, early December, and January 8—are essential in planning their finances for 2025. The COLA adjustment is designed to help beneficiaries keep pace with rising costs, but it also underscores the importance of planning. Stay informed about these dates and take advantage of the tools provided by the SSA, such as the My Social Security account, to make the most of your benefits.
Overall, while the COLA increase may be modest, even a small adjustment can help offset the financial strain of rising living expenses. The key is to stay proactive and prepared.
FAQs
When will the 2025 COLA be announced?
The SSA will announce the COLA on October 10, 2024.
How much will my Social Security increase in 2025?
The projected increase is 2.5%, but it will be officially confirmed in October.
When will I get my updated COLA notice?
Notices will be sent in early December 2024, or mid-November if you have an online account.
When will I receive my first increased check?
The first COLA-adjusted checks will be issued in January 2025.
Will SSI payments be affected by the COLA increase?
Yes, SSI recipients will receive their adjusted benefits on December 20, 2024.
