Social Security beneficiaries and Supplemental Security Income (SSI) recipients are set to see a 2.5% cost-of-living adjustment (COLA) beginning in late December 2024 and early January 2025. This modest increase, announced by the Social Security Administration (SSA) in October, marks the lowest adjustment since 2021 but aligns closely with the 20-year average of 2.6%.
Impact of the 2025 COLA
The 2.5% adjustment is expected to raise the average Social Security retirement benefit by approximately $50 per month. This increase will benefit an estimated 72.5 million Americans who rely on Social Security and SSI for financial stability.
For SSI recipients, the first COLA-adjusted payment will be sent on December 31, 2024, rather than January 1, 2025, as the latter is a federal holiday. Traditional Social Security beneficiaries will follow the standard payment schedule based on their birth dates:
- Birthdays 1st-10th: Payment on January 3, 2025.
- Birthdays 11th-20th: Payment on January 10, 2025.
- Birthdays 21st-31st: Payment on January 17, 2025.
Historical Context
Although the 2.5% COLA is less than the significant increases of recent years, it reflects economic trends and remains vital for adjusting benefits to inflation. This increase helps recipients manage rising costs, ensuring continued support for essential expenses like housing, groceries, and medical care.
Preparing for the Benefits Increase
The SSA automatically applies COLA adjustments, so beneficiaries do not need to take additional steps to receive the updated payments. For those seeking more detailed information about the payment schedule or additional benefits, visit the Social Security Administration website.
The upcoming benefits increase underscores the SSA’s commitment to adjusting payments in line with inflation, providing financial security to millions of Americans entering the new year.
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