Social Security recipients are set to receive their final checks for 2024 just before their monthly benefits increase due to the annual cost-of-living adjustment (COLA). The Social Security Administration (SSA) announced a 2.5% COLA increase for 2025, providing a welcome boost to millions of Americans.
Understanding the Cost-of-Living Adjustment (COLA)
- What is COLA?
Each October, the SSA announces the COLA for the upcoming year. This adjustment determines the increase in monthly benefits based on inflation and current economic conditions. - The 2025 COLA:
- Announced on October 10, 2024.
- Benefits will increase by 2.5%, reflecting changes in living costs.
2024 Final Payments and Key Dates
As the year wraps up, the SSA is issuing its last payments for December before the 2025 COLA increase takes effect.
- Payment Schedule Based on Birthdays:
- Birthdays on the 1st–10th: Payments sent on the second Wednesday of the month.
- Birthdays on the 11th–20th: Payments sent on the third Wednesday of the month.
- Birthdays on the 21st–31st: Payments sent on the fourth Wednesday of the month.
- December 18: Second-last payment for birthdays on the 11th–20th.
- December 24: Final payment of 2024 for birthdays on the 21st–31st.
- Maximum Retirement Benefits in 2024:
- Retirees at age 70: $4,873 per month.
- Retirees at full retirement age (67): $3,822 per month.
- First Payment of 2025:
- Date: January 8, 2025.
- Maximum benefits:
- Retirees at age 70: $5,108 per month.
- Retirees at full retirement age: $4,018 per month.
Supplemental Security Income (SSI) Payment Alert
Americans receiving Supplemental Security Income (SSI) should also take note of an early payment scheduled for December 31.
- Details of the Early Payment:
- It marks the first payment for January 2025 with the COLA increase.
- Instead of the usual $943, recipients will receive $967.
- This adjustment is due to January 1 being a federal holiday.
Key Highlights to Remember:
- Over 72 million Americans depend on SSA programs, with many relying on retirement benefits.
- Payment amounts vary based on the age at which recipients start receiving benefits.
- The SSA provides a helpful online calendar with detailed payment dates and additional resources.
As the COLA adjustment takes effect, 2025 promises increased financial support for Social Security recipients. Whether it’s retirement benefits or SSI payments, these changes aim to help Americans meet rising living costs.
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