As the year winds down, many people are thinking about their finances for the upcoming year, especially Social Security beneficiaries. The big question on everyone’s mind is, “When will I get my increased Social Security checks in 2025?”
And more importantly, how much will these payments change? There are three key dates that will help clarify everything about the Social Security cost-of-living adjustment (COLA) for 2025.
Let’s take a look at these key dates and what they mean for you.
1. October 10th, 2024: COLA Announcement
The Social Security Administration (SSA) will officially announce the cost-of-living adjustment for 2025 on October 10th, 2024. This announcement will be based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The CPI-W measures inflation, and the COLA is calculated by comparing the average CPI-W from the third quarter of 2023 with the third quarter of 2024.
Experts are projecting that the 2025 COLA could be around 2.5%, which is slightly lower than the 3.2% increase that beneficiaries received in 2024. However, this number is still not set in stone and may change as we get closer to the announcement.
2. Early December 2024: Personalized COLA Notices
Once the COLA is announced, Social Security will begin sending out personalized notices to each beneficiary by early December 2024. This notice will inform you exactly how much your benefits will increase starting in 2025.
If you have a My Social Security account, you will receive your COLA notice through the Message Center. You can also opt for alerts through email or text to notify you when the message is available. For those who do not have an online account, Social Security will mail out COLA letters throughout the month of December.
If you do not receive your notice by January 2025, the SSA recommends waiting until that time before contacting them, as it may take a while for all beneficiaries to receive their letters.
3. January 8th, 2025: First Increased Check
Social Security beneficiaries will receive their first check with the 2025 COLA increase on January 8th, 2025. However, the exact date of your payment depends on your birth date:
| Birth Date | Payment Date |
|---|---|
| 1st – 10th of the month | January 8th, 2025 |
| 11th – 20th of the month | January 15th, 2025 |
| 21st – 31st of the month | January 22nd, 2025 |
The Social Security Administration applies the COLA increase to your December 2024 payment, but since Social Security benefits are paid a month behind, your first check reflecting the higher amount won’t be received until January 2025.
For those receiving Supplemental Security Income (SSI), the situation is a little different. Because of the federal holiday on January 1st, SSI beneficiaries will receive their increased payment a bit earlier, on December 31st, 2024.
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How Will the COLA Impact Your Benefits?
The COLA increase will raise your Primary Insurance Amount (PIA), which is the benefit you would receive if you claimed Social Security at your full retirement age. By increasing your current checks by the COLA rate, you can estimate what your new benefit will be in 2025.
For instance, if you currently receive $2,000 per month, a 2.5% COLA increase would add an extra $50 per month to your payments, bringing your total to $2,050 per month.
Preparing for the Changes
To ensure you’re ready for the upcoming Social Security changes, here are a few things you can do:
- Check Your My Social Security Account: Make sure your information is up to date, and keep an eye out for your personalized COLA notice in December.
- Plan Your Budget: The COLA increase can help you adjust your budget for 2025. Take into account how much more you will receive and plan your expenses accordingly.
- Look for Tax Updates: Depending on your total income, a portion of your Social Security benefits may be subject to taxes. Plan ahead and set aside some money if necessary.
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Summary
The 2025 COLA increase may not be as large as previous years, but it still represents an important adjustment to help Social Security beneficiaries keep up with rising costs.
By marking these three key dates—October 10th for the COLA announcement, early December for your personalized notice, and January 8th for your first increased check—you’ll be well-prepared for the changes coming to Social Security next year.
Eliot Pierce is a dedicated writer for ChiefsFocus.com, covering local crime and finance news. With a keen eye for detail and a passion for storytelling, Eliot aims to provide his readers with clear and insightful analysis, helping them navigate the complexities of their financial lives while staying informed about important local events. His commitment to delivering accurate and engaging content makes him a valuable resource for the community.