In January 2025, millions of retirees across the United States are still waiting to receive the annual cost-of-living adjustment (COLA) increase from Social Security. This adjustment, set at 2.5% for 2025, aims to help retirees offset inflation and maintain their purchasing power. However, not all retirees have seen the benefit reflected in their payments yet.
Who Hasn’t Received the 2025 COLA Increase?
Only two out of five groups of Social Security recipients have already received their payments, leaving three large groups still waiting. These retirees will receive their adjusted payments based on specific schedules tied to their birthdates. The remaining groups are:
- Retirees with Birthdays Between the 1st and 10th of Any Month:
These individuals will receive their COLA-adjusted payment on January 8. This group includes retirees who are not eligible for Supplemental Security Income (SSI) or those who didn’t receive their payment on January 3. - Retirees with Birthdays Between the 11th and 20th:
Their payment date is set for January 15. While some retirees in this group may need to wait just 24 hours, others might have to wait as long as eight days. - Retirees with Birthdays Between the 21st and 31st:
This group will see their payments on January 22. Although this is the final group to receive the COLA-adjusted payment, they can still expect a boost in their Social Security income.
What the COLA Increase Means for Retirees
The 2.5% increase might seem modest compared to previous years, but it still provides a noticeable financial benefit for retirees. The exact amount depends on the individual’s monthly payment before the adjustment:
- For Smaller Checks:
If you were receiving $500 per month, the COLA increase adds $12.50, bringing the total monthly payment to $512.50. - For Larger Checks:
A retiree with a $4,000 monthly payment will see a $100 increase, resulting in a new payment of $4,100.
On average, Social Security estimates that beneficiaries will receive an additional $50 per month. For example, if a retiree’s monthly payment was $1,927 in December 2024, the COLA adjustment raises it to $1,976 in January 2025.
Why COLA Adjustments Are Crucial
Cost-of-living adjustments play a vital role in helping retirees cope with rising expenses due to inflation. While the 2.5% increase for 2025 is smaller than in previous years, it still represents a lifeline for millions who depend on Social Security for their basic needs. These adjustments are designed to ensure that retirees do not lose buying power as prices for essential goods and services increase.
Key Takeaways for Social Security Beneficiaries
- Payment dates depend on your birthdate and follow a staggered schedule throughout January.
- Not all retirees receive the same benefit amounts after the COLA adjustment, as the increase is based on a percentage of their current payment.
- For most beneficiaries, the adjustment will result in an average boost of $50 per month, though higher-income recipients will see larger increases in dollar terms.
Retirees are advised to check their payment schedules and ensure that their direct deposit information is up to date to avoid delays. For those still waiting, the increase will soon provide some much-needed financial relief.
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