With the Social Security Administration (SSA) set to release the 2025 Cost-of-Living Adjustment (COLA) figures this week, beneficiaries of retirement, survivor, disability, and Supplemental Security Income (SSI) programs are eager to learn how much their benefits will increase.
The Bureau of Labor Statistics (BLS) uses inflation data to ensure that Social Security payments keep pace with rising living costs. While the exact percentage hasn’t been finalized, early estimates from the Senior Citizens League project a COLA increase between 2.73% and 3.2%.
Here’s what you need to know about the upcoming payment dates, expected increases, and what these changes mean for your monthly benefits.
Payment Schedule
Social Security benefits are distributed according to a set monthly schedule. This schedule varies based on the type of benefits you receive and the date you initially filed for your benefits. Here’s the breakdown of the 2025 payment dates, including the impact of the new COLA increase.
- SSI Recipients:
- First 2025 Payment: December 31st, 2024.
- Reason: Since January 1st is a federal holiday, SSI recipients will receive their January payment early on December 31st, making them the first group to receive the new COLA-adjusted benefits.
- Retirees, Survivors, and Disabled People (Filed before May 1997):
- Payment Date: January 3rd, 2025 (Friday).
- Criteria: Applies only to those who started receiving benefits before May 1997.
- Retirees, Survivors, and Disabled People (Filed after May 1997): Payments are distributed based on birth dates, following the SSA’s staggered schedule:
- Born on the 1st–10th: January 8th, 2025 (Wednesday).
- Born on the 11th–20th: January 15th, 2025 (Wednesday).
- Born on the 21st–31st: January 22nd, 2025 (Wednesday).
Payment
| Recipient Type | Payment Date | Criteria |
|---|---|---|
| SSI Recipients | December 31st, 2024 (Tuesday) | First 2025 check includes COLA increase. No January payment. |
| Filed for Benefits Before May 1997 | January 3rd, 2025 (Friday) | Includes all retirees, survivors, and disabled individuals. |
| Filed for Benefits After May 1997 (Based on Birthdays) | – January 8th (1st–10th) | Day of birth determines payment date. |
| – January 15th (11th–20th) | ||
| – January 22nd (21st–31st) |
Increases
The COLA adjustment varies depending on the type of Social Security benefits you receive and your specific circumstances. Below are estimated increases based on a potential 2.5% COLA. Keep in mind that these figures are only approximations, as the official COLA percentage will be announced in October.
Estimated Benefit
| Program Type | Current Average | With 2.5% COLA | Specific Cases |
|---|---|---|---|
| Retirement Benefits | $1,948 | $1,996 | Age 62: $2,778 → $2,847 |
| Age 67: $3,918 → $4,016 | |||
| Age 70: $4,995 → $5,120 | |||
| Survivor Benefits | $1,543 | $1,582 | Individual: $1,817 → $1,862 |
| Two Children: $3,744 → $3,837 | |||
| Disability Benefits (SSDI) | $1,575 | $1,614 | Blind Recipients: $2,655 → $2,721 |
| Maximum Payment: $3,918 → $4,016 | |||
| Supplemental Security Income | $715 | $733 | Individuals: $967 → $991 |
| Couples: $1,450 → $1,486 | |||
| Essential Person: $484 → $496 |
These estimates provide a preliminary view of how your payments might change in 2025. The actual increases will be confirmed once the COLA percentage is announced.
Benefit Amounts
For retirees, the amount you receive depends on your age at retirement and your employment history. People who delay claiming Social Security until age 70 receive significantly higher payments than those who begin at 62. Similarly, your earnings record and the number of years worked impact your benefits.
Survivor Benefits
For disability recipients, benefit amounts are based on lifetime average earnings, while survivor benefits are influenced by the deceased worker’s record and the number of qualifying dependents.
SSI Specific Rules
SSI benefits are determined by financial need, and factors like in-kind support, household income, and other resources play a significant role. The recent SSA rule changes for in-kind support and maintenance may also increase SSI benefits for some recipients in 2025.
Maximizing Your Benefits
To make the most of the upcoming increases, it’s essential to plan and understand your benefit options:
- Review Your Payment Schedule: Ensure you’re familiar with when your benefits will arrive, especially if you have automatic payments set up for bills or other expenses.
- Use Online Calculators: SSA’s website offers online calculators to help estimate your future benefits. Plug in the estimated COLA percentage to see how much your check might increase.
- Consider Additional Assistance: If your COLA-adjusted benefits still don’t cover your essential needs, investigate additional assistance programs like Medicare Savings Programs, SNAP, or state-funded support options.
Final Thoughts
The 2025 COLA increase will provide a welcome boost for millions of Americans relying on Social Security benefits, though it may not completely offset rising costs. Knowing your specific payment schedule and estimated increases will help you prepare for the upcoming year.
FAQs
When will the 2025 COLA be confirmed?
The 2025 COLA will be announced on October 10th, 2024.
When will I receive my first COLA-increased check?
SSI recipients will receive their first 2025 payment on December 31st, 2024. Other recipients will see the increase in their January 2025 payments.
How much will my Social Security check increase?
The estimated COLA is 2.5%, but the exact amount will depend on your current benefit.
Why does the SSA stagger its payment dates?
The SSA uses staggered dates to streamline distribution and avoid processing delays.
What should I do if I don’t see an increase in January?
Contact the SSA to verify your payment details and confirm if you’re eligible for the COLA adjustment.
