Social Security beneficiaries are gearing up for a 2.5% cost-of-living adjustment (COLA) in 2025, as announced by the Social Security Administration (SSA). This adjustment, set to take effect in the coming weeks, ensures that payments keep pace with inflation, benefiting roughly 72.5 million Americans.
Payment Schedule for the 2025 COLA
The first payment reflecting the 2.5% increase will vary depending on the type of benefit and the recipient’s payment schedule:
- SSI Recipients: SSI beneficiaries will receive their first COLA-adjusted payment on December 31, 2024, since the regular January 1 payment date falls on a federal holiday.
- Social Security Recipients: Traditional Social Security beneficiaries will see their updated payments in January 2025, based on their birth dates:
- 1st-10th of the month: Payment on January 3, 2025.
- 11th-20th of the month: Payment on January 10, 2025.
- 21st-31st of the month: Payment on January 17, 2025.
How Much Will Payments Increase?
The average Social Security retirement benefit is expected to rise by approximately $50 per month due to the 2.5% COLA. For SSI recipients, the maximum monthly benefit for individuals will increase to $967, while married couples can receive up to $1,450. These adjustments provide critical support for managing rising costs in housing, healthcare, and other essentials.
Historical Context and Outlook
While the 2.5% increase is modest compared to recent years, it aligns with the 20-year average of 2.6%. This adjustment demonstrates the SSA’s commitment to safeguarding beneficiaries’ purchasing power against inflationary pressures.
For more information about the 2025 Social Security COLA and its implications, visit the official SSA website or read further coverage on MSN Money.
The COLA increase ensures millions of Americans can maintain financial stability and adapt to evolving economic conditions in the new year.
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