Increased checks for retirees in 2025 – The 3 dates that will change everything about Social Security in the coming months

According to Lagradaonline, Social Security beneficiaries are typically well-informed about their payment dates and the annual cost-of-living adjustment (COLA) increases. However, there are additional key dates to remember as the announcement for the 2025 COLA approaches. The projected increase is around 2.5%, slightly less than the 3.2% received this year, although this figure may still be subject to change. While much of the media attention is focused on the announcement date, beneficiaries should also keep two other important dates in mind regarding the 2025 COLA.

Key Date 1: October 10, 2024 – Official COLA Announcement

On October 10, the Social Security Administration (SSA) will officially announce the COLA for 2025. This announcement will include the September 2024 Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which is the final data point needed for the COLA calculation. This figure will be averaged with data from July and August and compared to the average from the third quarter of 2023.

It’s important to note that the COLA does not apply directly to individual checks but is instead reflected in the Primary Insurance Amount (PIA), which is the benefit amount received if claiming Social Security at full retirement age (FRA). Beneficiaries can estimate their new payment amount for 2025 by applying the COLA rate to their current checks. For example, if a beneficiary currently receives $2,000 per month, they could expect an increase of about $50 per month if the COLA is indeed 2.5%.

Key Date 2: Early December 2024 – Personalized COLA Notices

In early December, the SSA will send personalized notices to all Social Security beneficiaries detailing their specific benefit amounts for 2025. Those who have set up a My Social Security account can access their COLA notice via the Message Center by mid-November and may opt to receive an email or text alert when their notice is available.

The SSA will continue mailing COLA letters throughout December, but due to the volume of notices being sent, beneficiaries are advised to wait until January 2025 to report any missing notices.

Also read: SSI Savings: What does the SSI Savings Penalty Elimination Act propose?

Key Date 3: January 8, 2025 – First Checks Reflecting COLA Increase

While the SSA applies the 2025 COLA to December 2024 payments, beneficiaries will receive their first checks reflecting this increase in January 2025. Payment dates will depend on the beneficiary’s birth date:

• Born on the 1st through the 10th: Payments will be issued on January 8, 2025.
• Born on the 11th through the 20th: Payments will be issued on January 15, 2025.
• Born on the 21st through the 31st: Payments will be issued on January 22, 2025.

Beneficiaries will continue to receive payments on the second, third, or fourth Wednesday of each month, depending on their birth date.

Additional Information for SSI Recipients

For those receiving Supplemental Security Income (SSI), the increase will occur even sooner. SSI payments are typically disbursed on the first of the month; however, due to the federal holiday on January 1, 2025, these checks will instead be issued on December 31, 2024.

By keeping track of these important dates, Social Security beneficiaries can better plan for the upcoming changes to their benefits in 2025.