The Social Security Administration (SSA) has revealed the payment schedule for December, which includes an unusual five payments—this is due to the timing of the holidays. Typically, there are only four payments each month, so this increase in the number of payments stands out. However, it’s important to note that this is not an extra or bonus check.
The reason for the extra payment is that New Year’s Day falls on a holiday, and Social Security only processes payments on business days. To ensure timely delivery, recipients of Supplemental Security Income (SSI) will receive their checks on December 31 instead of January 1, 2025. Additionally, SSI recipients will be the first to benefit from the 2.5% COLA (Cost-of-Living Adjustment) increase for 2025.
When Will Retirees & SSDI Recipients Receive Their Social Security Boost?
For retirees and SSDI (Social Security Disability Insurance) recipients, the COLA increase will be distributed across four different paydays starting in January 2025.
The first payment will be made on January 3, 2025, when retirees can begin collecting their new monthly checks, which may be as high as $5,180. However, the average payment is expected to be around $1,907, according to the SSA’s latest COLA Fact Sheet.
To qualify for the January 3 payment, retirees and people receiving disability benefits must have been receiving Social Security payments before May 1997. If you started receiving benefits after that date, you will not receive your payment on January 3. Instead, you will get it on January 10, 2025.
Remember that Social Security pays SSDI and retirement benefits on the same day, so if you are eligible, you will likely see the same payday.
Who Will Get the Social Security Boost on January 8, 15, and 22?
The COLA increase will continue in January, with the following schedule based on your birthdate:
- January 8, 2025: If your birthday falls between the 1st and 10th of the month, this is when you will receive your payment with the 2.5% COLA boost.
- January 15, 2025: If your birthday falls between the 11th and 20th, expect your payment to arrive on January 15.
- January 22, 2025: If your birthday is between the 21st and 31st, your payment will be made on January 22.
While the extra money may not seem like a lot, this increase is a welcome relief, helping to maintain purchasing power amid rising costs. Additionally, the last payment in December will already reflect the 2025 COLA adjustment, further boosting the financial support for beneficiaries.
Social Security recipients can look forward to a smoother start to 2025 with these adjusted payment dates and the new COLA increase.
FAQ: Social Security Payments and COLA Increase for 2025
1. Why are there five Social Security payments in December?
- In December, there are five payments because the Social Security Administration (SSA) is sending out a check early due to the New Year’s holiday. SSI payments, typically made on the first day of the year, are being sent on December 31, 2024, instead of January 1, 2025. This ensures beneficiaries receive their payments on time.
2. What is the 2.5% COLA increase, and when will it take effect?
- The 2.5% Cost-of-Living Adjustment (COLA) increase will go into effect for Social Security recipients in 2025. This adjustment helps to keep up with inflation and will be reflected in checks starting in December 2024 and throughout 2025.
3. When will retirees receive their Social Security increase in 2025?
- Retirees will receive their Social Security boost on four different days in January 2025:
- January 3, 2025: For those who received Social Security before May 1997.
- January 10, 2025: For those who started receiving benefits after May 1997.
- January 8, 2025: For retirees with birthdays between the 1st and 10th of the month.
- January 15, 2025: For retirees with birthdays between the 11th and 20th of the month.
- January 22, 2025: For retirees with birthdays between the 21st and 31st of the month.
4. Who qualifies for the first payment on January 3, 2025?
- The first payment on January 3, 2025, is for retirees and SSDI recipients who have been receiving Social Security payments since before May 1997. Those who started receiving benefits after that date will receive their payment later in January.
5. What will be the average Social Security payment in 2025?
- The average monthly Social Security payment in 2025 is expected to be around $1,907, though the maximum check could reach up to $5,180, depending on the recipient’s work history and earnings.
6. Why does the Social Security Administration only send payments on business days?
- The SSA only processes payments on business days to ensure that funds are delivered accurately and on time. This is why payments that would normally fall on a holiday (like New Year’s Day) are sent out on the previous business day (December 31, 2024).
7. How will the 2.5% COLA increase affect my payment?
- The 2.5% COLA increase will boost your monthly check, though the exact amount will depend on your current benefits. The increase will help maintain your purchasing power as the cost of living rises.
8. Will the COLA increase be included in December payments?
- Yes, the final Social Security payment of December 2024 will include the 2.5% COLA increase, so beneficiaries will receive an adjusted amount reflecting the new increase before the start of the year.
9. Are there any other changes to Social Security payments in 2025?
- The primary change in 2025 is the COLA increase, which will affect the amount of each monthly check. Recipients can expect to see an increase based on their birthdate schedule and the timing of the payments.
10. How do I know when to expect my Social Security check in January 2025?
- Your payment date will depend on your birthday:
- 1st-10th: January 8, 2025
- 11th-20th: January 15, 2025