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Social Security recipients will see a 2.5% cost-of-living adjustment (COLA) in 2025, increasing monthly benefits by an average of $49.
Social Security provides vital financial support to retirees, disabled individuals, and their families. (AP Photo)
UPDATED: Jan 2, 2025 00:25 IST
Some positive news for Social Security recipients. In 2025, tens of millions of older Americans will see an increase in benefits of 2.5 % this January when a new cost of living adjustment (COLA) is added to Social Security payments. This increase in COLA will help them to keep up with inflation and prevent the erosion of purchasing power because of rising living costs.
Understanding the COLA Increase
The 2.5% COLA to be applied for 2025 amounts to an average of about $49 per month for retirees, thus, boosting the benefit from $1,927 to about $1,976. This increase, though smaller than the 3.2% increase for 2024 and the historically large 8.7% rise for 2023, still reflects the conditions of the present economy and the mitigated inflation rate.
January Payment Schedule for 2025
This helps recipients to have in mind the exact dates in order to see them through until the next pay date. Below is the January 2025 schedule:
Supplemental Security Income (SSI): Since January 1 is a federal holiday, SSI payments will be disbursed on December 31, 2024.
Social Security Retirement and Disability Benefits:
January 3: For individuals who started receiving benefits before May 1997 or those receiving both SSI and Social Security. January 8: For individuals born between the 1st and 10th of any month January 15: For individuals born between the 11th and 20th of any month. January 22: Those born between the 21st and 31st.Boosting Your Benefits
The COLA increase will see the maximum federal SSI payment for an individual rise to $967 and that for couples rise to $1,450.
These adjustments are designed to assist beneficiaries in meeting their basic needs amid economic changes.
Planning Ahead
To ensure smooth financial planning:
Mark Your Calendar: Note the payment dates corresponding to your situation to avoid any surprises. Monitor Your Bank Account: Ensure that direct deposits are made on the expected dates. If there's a delay, contact your financial institution first, and if necessary, reach out to the Social Security Administration (SSA). Stay Informed: Keep updated on any new releases from the SSA about your benefits.To get more detailed information, refer to the official SSA publication about the 2025 payment schedule.
By keeping informed and taking proactive steps, you can take full advantage of your Social Security benefits in the next year.
Published By:
indiatodayglobal
Published On:
Jan 2, 2025
