As spooky season arrives, millions of Americans who rely on Social Security can expect a fresh round of payments to be delivered in October. Whether it’s Old-Age, Disability, or Supplemental Security Income (SSI) benefits, the Social Security Administration (SSA) ensures these essential funds reach beneficiaries each month. For some, these payments could exceed $4,000 this month, offering much-needed financial support.
Next week brings more important updates, including the announcement of the 2025 cost-of-living adjustment (COLA), which will impact the Social Security benefits for millions of retirees and disabled individuals starting in January.
COLA
As 2024 draws to a close, Social Security beneficiaries are eagerly awaiting the official announcement of the 2025 cost-of-living adjustment (COLA). Set to be revealed on October 10th, this annual adjustment will determine how much payments will increase to offset inflation.
The COLA is calculated based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which tracks inflation in prices of goods and services. For 2025, the expected increase is 2.5%, slightly lower than the previous year but still offering a valuable boost to help beneficiaries keep up with rising living costs.
Legislative Update
In other Social Security news, Congress is preparing to vote on the Social Security Fairness Act, a bill that could benefit millions of Americans. The proposed legislation aims to address the negative effects of the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), both of which currently reduce Social Security payments for individuals receiving pensions from non-Social Security-covered employment (such as some government jobs). If passed, this bill would protect beneficiaries from reductions, ensuring they receive the full amount of their Social Security benefits.
Payments
One key aspect of Social Security is that the longer you wait to claim your benefits, the higher your monthly payout will be. Currently, the average Social Security beneficiary from the Old-Age fund receives $1,900 per month. However, if you claim your benefits early at age 62, your monthly payment could reach up to $2,710.
For those who wait until age 70, the maximum payout can increase to $4,873 per month, offering a substantial financial advantage. Similarly, if you receive Disability Insurance payments, the maximum benefit is $3,822 per month, while survivors with two children can claim up to $3,953.
SSI recipients, who often qualify due to low income or resources, receive an average of $698 per month. These need-based payments are available to Americans who may receive both Disability and Old-Age benefits and have limited income or resources.
Payment Schedule
The October payment schedule is already in motion, with SSI payments sent out on the first of the month. For those who claimed Social Security before May 1997, payments are being distributed today. If you claimed Social Security after May 1997, your payment date depends on your birth date. Here’s the breakdown:
| Payment Date | Birth Date Range |
|---|---|
| October 9th | Born between the 1st–10th |
| October 16th | Born between the 11th–20th |
| October 23rd | Born between the 21st–31st |
Payments are adjusted if the scheduled date falls on a weekend. For example, September 1st was a weekend, so SSI payments for September were made on August 31st.
If your payment is delayed, allow at least three mailing days before contacting the SSA. Sometimes, delays can occur due to banking issues, but the SSA will always ensure payments are distributed.
Challenges
Social Security remains a key issue in Congress, particularly as the Old-Age fund is projected to be depleted by 2033. This impending depletion has prompted lawmakers to consider reforms, including raising Social Security taxes or reducing payment costs, to extend the program’s longevity.
If the fund runs out, beneficiaries will continue to receive payments, but with a potential 20% reduction. This possibility underscores the importance of reforming the system to ensure future generations of Americans can rely on Social Security.
As inflation remains a pressing issue and concerns about the program’s sustainability grow, Social Security is set to be a significant topic during the upcoming presidential term. For millions of Americans, the future of these benefits is crucial to maintaining their financial stability in retirement.
FAQs
When will the 2025 COLA be announced?
The 2025 COLA will be announced on October 10th, 2024.
What is the expected COLA increase for 2025?
The expected COLA increase for 2025 is 2.5%.
When will the new COLA payments start?
Beneficiaries will begin receiving the updated payments starting in January 2025.
How are Social Security payments scheduled in October?
Payments will be distributed on October 9th, 16th, and 23rd based on beneficiaries’ birth dates.
What is the Social Security Fairness Act?
This proposed bill seeks to eliminate reductions caused by the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO), protecting beneficiaries’ payments.
