Mark your calendars: 3 Social Security COLA dates to know for 2025
According to USA Today, We’re only a few weeks away from learning what the 2025 Social Security cost-of-living adjustment (COLA) will be. Current projections estimate it to be around 2.5%, which is less than the 3.2% beneficiaries received this year. However, these figures may still change slightly before the official announcement.
Key Dates to Note for the 2025 COLA
While the announcement date itself has garnered much attention, there are also two other significant dates to keep in mind regarding the 2025 COLA:
1. October 10: Social Security Administration Announces the 2025 COLA
On October 10, the Social Security Administration (SSA) will officially announce the 2025 COLA. This announcement will include the September 2024 Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) figure, which is crucial for calculating the COLA. The SSA will average this data with figures from July and August, comparing it to the average third-quarter data from 2023 to determine the final COLA percentage.
It’s important to note that the COLA isn’t applied directly to checks but to your primary insurance amount (PIA). The PIA reflects the benefit you would qualify for if you applied for Social Security at your full retirement age (FRA). Adjustments are then made to your benefit based on when you actually applied.
For instance, if the COLA is set at 2.5% and you currently receive $2,000 per month, you can expect an increase of $50 per month in 2025.
2. December 2024: Personalized COLA Notices Sent to Beneficiaries
In early December, the SSA will send personalized notices to all Social Security beneficiaries detailing exactly how much they will receive in 2025. If you’ve created a my Social Security account by mid-November, you can view your COLA notice through your Message Center. Additionally, you can sign up for email or text alerts to notify you when your notice is available.
The SSA will also mail out COLA notices throughout December. However, they advise beneficiaries not to contact them regarding missing notices until January 2025, as processing these notices for millions of beneficiaries takes time.
Also read: Social Security COLA Increase for 2025: The Latest Expert Predictions Are In
Payment Schedule: First Checks with the 2025 COLA
The first checks reflecting the 2025 COLA will be distributed in January 2025. Although the SSA will technically apply the COLA to your December 2024 payment, you won’t see the adjustment until the following month due to the timing of check disbursement.
The payment dates depend on your birthdate:
- Born on the 1st through the 10th: January 8, 2025
- Born on the 11th through the 20th: January 15, 2025
- Born on the 21st through the 31st: January 22, 2025
Beneficiaries will continue to receive payments on either the second, third, or fourth Wednesday of each month based on their birthdate.
Supplemental Security Income (SSI) Recipients
Those receiving Supplemental Security Income (SSI) will see their checks adjusted even sooner. Typically paid on the 1st of the month, SSI payments will go out on December 31, 2024, since January 1, 2025, is a federal holiday.
Planning Your Budget for 2025
Once you have clarity on how much you’ll receive from Social Security (and possibly SSI) in 2025, you can start planning your budget for the upcoming year. If you have questions about how the COLA will impact your checks, feel free to contact the SSA. However, it may be wise to wait until you receive your COLA notice in December, as it will likely answer many of your questions.
The Motley Fool has a disclosure policy.
Unlocking Additional Social Security Benefits
The Motley Fool also highlights a potential $22,924 Social Security bonus that many retirees overlook. If you feel behind on retirement savings, learning about little-known Social Security strategies could significantly boost your retirement income. To explore these strategies, click here to find out more!
