Upcoming Social Security Increase for Retirees – Announcement Date for 2024

As the end of the year approaches, many retired workers are curious about how much their Social Security checks will increase in 2025. Typically, the Social Security Administration (SSA) announces the cost-of-living adjustment (COLA) in October, which determines how much payments will increase to help beneficiaries keep pace with inflation.

Last year’s COLA was set at 3.2%, but this year’s increase is projected to be lower, potentially around 2.63%, according to estimates from the Senior Citizens League (TSCL). While the final percentage won’t be known until October, it’s essential for beneficiaries to stay informed about these updates as they directly impact their income in 2025.

COLA and Its Impact

The COLA is designed to adjust Social Security benefits to match the rising costs of living, ensuring that recipients maintain their purchasing power despite inflation. The COLA is calculated based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) and becomes effective in January of the following year. For 2025, the COLA increase is expected to be one of the lowest in recent years, around 2.63%. However, despite the modest increase, it remains a vital adjustment to help beneficiaries cope with rising expenses.

COLA Payments

While most beneficiaries will see the COLA increase reflected in their January 2025 payments, there is a group of recipients who will receive their boost a little earlier. The SSA delivers payments in five rounds each month, with SSI recipients typically receiving their payments on the first day of the month. However, because January 1, 2025, falls on a holiday, SSI recipients will receive their first 2025 payment, including the COLA increase, on Tuesday, December 31, 2024. This early payment ensures that beneficiaries do not experience any delay due to the holiday.

SSA Payment Schedule

The SSA has a specific payment schedule to ensure that more than 71 million beneficiaries receive their checks on time. This schedule is based on the program for which beneficiaries qualify, the date when they first claimed their benefits, and their birth date. Here’s a breakdown of how the SSA delivers its monthly benefits:

• SSI Recipients: Typically receive payments on the first day of the month. If the first falls on a weekend or holiday, the payment is made on the preceding business day.
• Retirement, Survivor, and Disability Insurance (RSDI) Beneficiaries:
  • 3rd of the Month: Payments are made to those who claimed benefits before May 1997.
  • 2nd Wednesday: For beneficiaries born between the 1st and 10th who claimed benefits after May 1997.
  • 3rd Wednesday: For those born between the 11th and 20th who claimed benefits after May 1997.
  • 4th Wednesday: For those born between the 21st and 31st who claimed benefits after May 1997.

amount

The amount Social Security beneficiaries receive varies depending on their specific circumstances, such as age, work history, and type of benefits. Here’s an overview of the average and potential payment amounts across different Social Security programs:

Benefit Type	Average Payment	Potential Maximum Payments
Retirement Benefits	$1,900	Age 62: $2,710; Age 67: $3,822; Age 70: $4,873
Survivor Benefits	$1,505	Individual: $1,773; 2 children: $3,653
Disability Benefits	$1,537	Blind recipients: $2,590; Max: $3,822
SSI Benefits	$698	Individual: $943; Couples: $1,415; Essential Person: $472

These figures represent average and potential maximum payments based on current SSA guidelines. It’s important for beneficiaries to know that the exact amount they receive depends on their unique eligibility and work history. If you are considering applying for Social Security benefits, or if you are already a recipient, it’s always a good idea to consult the SSA’s official website or speak with a Social Security representative to get the most accurate information for your situation.

Staying informed about COLA updates and knowing how Social Security payments work can help you better plan your finances for the coming year. As always, keep an eye out for the official announcement in October to know exactly how much your benefits will increase in 2025.

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