In response to rising inflation, the Social Security Administration (SSA) has announced a 2.5% Cost-of-Living Adjustment (COLA) increase for 2025. This annual adjustment helps Social Security and Supplemental Security Income (SSI) recipients maintain their purchasing power in the face of inflation. With costs for essential goods and services continuing to climb, the COLA increase ensures that beneficiaries’ payments reflect changes in the cost of living. Here’s what you need to know about when you can expect your COLA-adjusted payments in 2025.
What is COLA?
The Cost-of-Living Adjustment (COLA) is a percentage increase in Social Security and SSI payments, based on the changes in the Consumer Price Index (CPI). The CPI tracks inflation by measuring the price fluctuations of goods and services that people commonly purchase, including housing, food, clothing, and transportation. Each year, the SSA uses the CPI to determine whether a COLA increase is necessary to maintain the purchasing power of benefits.
For 2025, the COLA adjustment will be 2.5%, meaning that recipients will see their monthly payments rise by this amount. This increase will begin in December 2024 for SSI recipients and in January 2025 for Social Security beneficiaries.
When Will Payments Be Issued in 2025?
The timing of your COLA-adjusted payments will depend on your birth date. The SSA distributes Social Security benefits on a monthly schedule to ensure fairness and organization. Below is the breakdown of when you can expect your payments:
Social Security Recipients with Birth Dates between the 1st and 10th of the Month:
If your birthday falls between the 1st and 10th of the month, your COLA-adjusted payments will be sent on the second Wednesday of each month. For example, in January 2025, recipients born between the 1st and 10th will receive their payment on January 8, 2025.
Social Security Recipients with Birth Dates between the 11th and 20th of the Month:
If your birthday falls between the 11th and 20th, your payments will be issued on the third Wednesday of each month. For January 2025, these recipients will receive their payment on January 15, 2025.
Social Security Recipients with Birth Dates between the 21st and 31st of the Month:
If your birthday falls between the 21st and 31st, you will receive your payment on the fourth Wednesday of each month. In January 2025, these recipients will receive their payment on January 22, 2025.
What About SSI Recipients?
SSI recipients, who generally receive lower benefits, will also see their payments increase due to the COLA adjustment. In 2025, SSI recipients will see their monthly payments rise from $943 to $967. The first payment reflecting the COLA increase will be issued on December 31, 2024. Going forward, SSI recipients will continue to receive their payments on the 1st of each month.
Conclusion
Social Security and SSI recipients will see their COLA-adjusted payments starting in December 2024 for SSI beneficiaries and January 2025 for Social Security recipients. The 2.5% increase is a welcome adjustment, helping millions of Americans stay ahead of inflation and continue meeting their financial needs. The COLA is an essential tool for ensuring that Social Security and SSI benefits remain in line with the cost of living, providing vital financial support to retirees, people with disabilities, and their families.
FAQs
Q.How much is the COLA increase for 2025?
A.The COLA increase for 2025 is 2.5%, which will be reflected in monthly Social Security and SSI payments.
Q.When will SSI payments be sent in 2025?
A.SSI recipients will see their COLA increase starting on December 31, 2024, with payments continuing on the 1st of each month thereafter.