Major Social Security Boost in 2025 – 3 Key Dates That Will Change Everything for Retirees

Social Security beneficiaries often keep a close eye on key dates, such as when payment dates are announced or when the annual Cost-of-Living Adjustment (COLA) is revealed. However, there are other critical dates to be aware of each year. The 2025 COLA announcement, which is coming up soon, is expected to be lower than the 3.2% increase given this year, with projections hovering around 2.5%. While much of the media attention is focused on the October announcement date, there are two more crucial dates that beneficiaries should note.

Announcement

The official COLA announcement for 2025 is set for October 10th, 2024. This will be the date when the Social Security Administration (SSA) confirms the final percentage increase for benefits in 2025. The figure will be based on the September 2024 Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which will then be averaged with the July and August data to calculate the final COLA rate. The government will compare it to the third quarter of 2023 figures to determine any adjustments.

Knowing how the COLA is applied is important. While beneficiaries might expect the COLA to be directly added to their monthly checks, it’s actually first applied to the Primary Insurance Amount (PIA), which is the amount received if you claim Social Security at your Full Retirement Age (FRA). Depending on whether you have claimed early or delayed benefits, the adjustment may impact your final payment differently.

For example, if the COLA is set at 2.5% and you currently receive $2,000 a month, the increase would mean an additional $50 monthly starting in 2025.

Notices

In early December 2024, all Social Security recipients will receive personalized notices detailing the exact benefit amount they will receive in 2025. If you have set up a My Social Security account, you can access these details online in your Message Center. Beneficiaries can also opt for an email or text alert to notify them when the COLA notice is available.

For those without an online account, the SSA will mail physical COLA notices throughout December. However, due to the large number of beneficiaries, mail delays can occur. The SSA recommends waiting until January 2025 before reporting missing notices.

Payments

The COLA increase will officially be applied to December 2024 benefits, but the first checks reflecting the new 2025 COLA amount will be disbursed starting in January 2025. Payment dates will vary depending on the beneficiary’s birth date:

• Recipients born on the 1st to the 10th: Payment on January 8th.
• Recipients born on the 11th to the 20th: Payment on January 15th.
• Recipients born on the 21st to the 31st: Payment on January 22nd.

The regular payment schedule for Social Security benefits will remain the same for the rest of the year, with checks issued on the second, third, or fourth Wednesday of each month, depending on the birth date.

For individuals receiving Supplemental Security Income (SSI), the payment will come a bit earlier. Due to the federal holiday on January 1, 2025, SSI checks will be disbursed on December 31, 2024.

Final Thoughts

Marking these dates on your calendar can help you stay informed and better prepare for any financial changes coming in 2025. With COLA affecting nearly every aspect of a beneficiary’s Social Security payments, knowing when to expect official announcements, notices, and the first adjusted checks can make a big difference in budgeting and planning for the new year.

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