$600 extra per year due to 2025 COLA: These Social Security recipients will get a payment increase
According to Vibes.okdiario, The Social Security Administration (SSA) has unveiled the 2025 Cost-of-Living Adjustment (COLA), which will provide a 2.5% increase in benefits for retirees, Supplemental Security Income (SSI) recipients, and Social Security Disability Insurance (SSDI) recipients. This adjustment is lower than the 3.2% increase seen in 2024.
Monthly Benefit Increases
For retirees receiving benefits, this 2025 COLA translates to an additional $50 per month. However, SSI recipients, who have a lower maximum payment, will see only a $23 increase per month, resulting in a total annual increase of $276.
Annual Financial Impact for Retirees
Retirees will notice the impact of the $50 monthly increase, which amounts to an extra $600 in their annual benefits. For example, if the average monthly payment is $1,920, beneficiaries will now receive $1,968 each month. This increase is significant for retirees who depend on Social Security for a substantial portion of their income. However, it’s important to note that those with lower monthly payments will see a smaller increase. For instance, retirees with a monthly benefit of $900 will only receive an increase of $22.50.
Also read: November 2024 SSI Recipients to Receive Two Payments: $914 on November 1 and $914 on November 29
Timing of the COLA Increase
The 2025 COLA will take effect for retirees on January 3, 8, 15, or 22, 2025. Importantly, this increase will not be reflected in any of the October, November, or December payments for retirees.
In contrast, SSI recipients will experience the COLA boost earlier, with their payments adjusted in 2024. These beneficiaries will receive their January payment on December 31 because January 1 is a holiday, requiring the SSA to send the monthly payment ahead of schedule.
Key Takeaway
It is crucial to remember that the SSA does not schedule SSI payments on weekends or federal holidays. Consequently, only SSI recipients will benefit from the 2.5% COLA boost in 2024, while other recipients must wait until January for their additional funds.
