As 2024 nears its end, millions of Americans are anticipating the Cost-of-Living Adjustment (COLA) for Social Security benefits. However, Social Security has confirmed that there will be no COLA increase for retirees or Disability Insurance beneficiaries in 2024. Instead, in 2025 Social Security COLA Increase.
On a positive note, Supplemental Security Income (SSI) recipients will receive their COLA boost earlier than the rest; their increase will be effective from December 31, 2024. This advance adjustment offers some immediate relief, helping SSI recipients manage their expenses before the new year begins. Despite the overall delay in adjustments for other benefits, this early increase for SSI recipients provides a timely financial boost.
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What is COLA?
The annual Cost-of-Living Adjustment (COLA) is intended to assist Social Security recipients in coping with inflation. This adjustment, which reflects the average changes in prices for consumer goods and services, is calculated by the Bureau of Labor Statistics. The official COLA announcement is made in October, with the new rates becoming effective in January.
| Carbon Rebate Amounts 2024 25 |
| Canada Pension Plan |
| Extra Tax Refund Money |
| 2700 For Canadian Seniors From Cra |
| Canada 500 Electricity Bill Rebate |
Which Government Benefits Use COLA?
Several government benefits use the COLA to adjust their payouts, including:
- Social Security Retirement Benefits
- Social Security Disability Insurance (SSDI)
- Supplemental Security Income (SSI)
- Medicare
- Supplemental Nutrition Assistance Program (SNAP)
Predicted 2025 Social Security COLA Increase
Although the official 2025 COLA announcement is not due until October, experts offer monthly forecasts based on current inflation trends. The COLA was fixed at 3.2% in 2024. Looking forward, the Senior Citizens League, a nonpartisan advocacy organization, predicts a 2.63% increase for 2025.
COLA Increases Year Over Year
| Year | Increase Over Previous Year |
|---|---|
| 2024 | 3.2% |
| 2023 | 8.7% |
| 2022 | 5.9% |
| 2021 | 1.3% |
| 2020 | 1.6% |
Note: The Social Security Administration usually announces the adjustment during the second week of October. The new rate takes effect in January of the following year.
December Payment Details
Key Dates
The final Social Security payment for retirees and SSDI recipients before the 2025 COLA increase will be made on December 24, 2024. To qualify for this payment, you must meet the following criteria:
- Birthday Requirement: Your birthdate must be after the 20th of the month.
- Start Date: Your Social Security payments must have begun after April 30, 1997.
- Exclusions: You should not be receiving Supplemental Security Income (SSI).
Payment Schedule
Before the December 24 payment, Social Security payments will be distributed on the second and third Wednesday of the month, December 11 and December 18, respectively. The final retirement or SSDI payment originally scheduled for December 25 will be issued on the 24th due to the federal holiday.
| Date | Eligible Recipients | Payment Type |
|---|---|---|
| December 11 | General Social Security Payments | Regular Payment |
| December 18 | General Social Security Payments | Regular Payment |
| December 24 | Retirees & SSDI (born after 20th) | Pre-COLA Payment |
January 2025 Payments with COLA
Initial Payment
The first payment reflecting the 2025 COLA increase will be issued on January 3, 2025. This payment date applies to individuals who receive both SSI and Social Security benefits.
Subsequent Payments
For those not receiving the January 3 payment, subsequent payments will be distributed according to birth dates. The payment schedule is as follows:
- January 8: For those born between the 1st and 10th of the month
- January 15: For those born between the 11th and 20th of the month
- January 22: For those born between the 21st and 31st of the month
| Date | Birth Dates | Payment Type |
|---|---|---|
| January 3 | SSI and Social Security | COLA Payment |
| January 8 | Born 1st-10th | Regular Payment |
| January 15 | Born 11th-20th | Regular Payment |
| January 22 | Born 21st-31st | Regular Payment |
COLA Projections
- Projected Increase: The 2025 COLA is expected to be lower than in recent years but still above the average COLA increases.
- Impact: This adjustment is anticipated to help retirees and SSDI recipients maintain their purchasing power despite rising living costs.
2025 Social Security Payment Schedule After COLA
- Final Pre-COLA Payment: The last Social Security payment before the 2025 COLA increase will be issued on December 24, 2024.
- First COLA Payment: The initial payment reflecting the 2025 COLA will be sent out on January 3, 2025.
Understanding these updates and the revised payment schedule will assist beneficiaries in effectively managing their finances as the new year begins.
Why COLA Matters?
Here are some reason why COLA matters:
- Inflation Adjustment: The COLA helps seniors adjust their benefits to keep up with inflation, ensuring that their purchasing power is not eroded by rising prices.
- Financial Stability: By increasing Social Security payments in line with inflation, the COLA aims to maintain the financial stability of retirees and disabled individuals.
- Coverage Gaps: Despite its purpose, many argue that the COLA increase often does not fully reflect the actual cost of living, leading to gaps between benefits and real expenses.
- Survey Insights: According to a survey by the Senior Citizens League, 69% of respondents found that their household costs, particularly for food and housing, rose more quickly than the COLA adjustments last year.
- Ongoing Concerns: The disconnect between the COLA increase and actual inflationary pressures highlights ongoing concerns about whether the adjustments adequately meet the needs of beneficiaries.
Understanding the Monthly Benefit Increase
- Monthly Benefit Increase: If you receive Social Security benefits, the upcoming COLA adjustment will result in a modest rise in your monthly payments starting January 2025.
- Dependence on Final COLA: The specific increase amount will be determined by the final COLA percentage announced in October.
- Track Inflation Trends: To get a clearer picture of the potential adjustment, monitor monthly inflation trends, as they offer valuable insights into what to expect.
- Estimate Accuracy: While predictions may not always be precise, they provide a useful preview of how your benefits might change.
- Stay Updated: Keep informed about COLA news and updates to better understand how the adjustments will impact your monthly payments.
Conclusion
As 2024 comes to a close, the anticipation for the 2025 Cost-of-Living Adjustment (COLA) for Social Security benefits is growing. Although there will be no COLA increase in 2024, the adjustment in 2025 is expected to provide some relief for retirees and SSDI recipients, despite being lower than in recent years.
The final pre-COLA payment will be made on December 24, 2024, with the first adjusted payment scheduled for January 3, 2025. Staying informed about these updates and understanding the new payment schedule will help beneficiaries better manage their finances in the coming year.
FAQs
When is the last Social Security check before the increases in 2025?
The last payment will be issued on December 24, 2024.
Who qualifies for the December 24 payment?
Retirees and SSDI recipients born after the 20th of the month, who began receiving benefits after April 30, 1997, and do not receive SSI.
When will the first COLA-increased payment be made?
The first COLA-adjusted payment will be made on January 3, 2025.
What dates do people who don’t get SSI get paid in January?
Payments will be made on January 8, 15, and 22, depending on your birth date.
Will the 2025 COLA be higher than previous years?
The 2025 COLA is projected to be lower than in recent years but still higher than the average COLA adjustments.