2025 is coming! And we already know that starting a new year brings with it many plans and expectations. At the beginning of each year, we all write down our New Year’s purposes on paper, don’t you? And most of the time we always write “save” or “organize my finances better”. This is especially true for those who rely on Social Security to cover their daily needs. With cost-of-living adjustments (COLA) confirmed for 2025, millions of beneficiaries will have some financial breathing room. But when exactly will these payments arrive and what should you be aware of? In this article, we are going to tell you all the information you need in a very simple way so that you can organize your finances smoothly.
What is COLA?
Social Security has announced a 2.5% increase in cost-of-living adjustment (COLA) payments by 2025. This increase will benefit nearly 68 million Americans (including retirees, survivors, and Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI) beneficiaries).
The COLA is a small percentage that is added to each payment each year for beneficiaries not to feel the ravages of inflation, so, to each payment issued by the SSA is added the small adjustment that is calculated year after year and depending on the prices of necessities. In other words, the COLA is an “extra” that is added to your payment so you don’t feel like you are losing purchasing power because of inflation.
This year 2025 the adjustment will be less than in other years because inflation is finally saying goodbye to our country (it was time for a break!!).
Who benefits from this payment?
If you are wondering who are the people who are going to benefit from this COLA adjustment, you will need to know that they are all those people who directly receive Social Security payments, such as retirees enrolled in the pension program, people who benefit from the Supplemental Security Income Program, people who also receive Social Security disability payments, and those survivors who qualify for these benefits.
Key dates on the calendar.
Grab a pen and paper because the 2025 calendar is now available. As every year, it is organized to ensure that all beneficiaries receive their funds on fixed dates, regardless of their program. We know, like every year, they are organized depending on the date of birth of the beneficiaries, so we are going to give you here the most important facts you need to write down.
January comes strong and loaded with payments:
- Dec. 31, 2024 advance payment will arrive for SSI recipients
- On January 3 they will receive their payment for those who began receiving benefits before May 1997.
- January 8: Beneficiaries born between January 1 and January 10.
- January 15: Beneficiaries born between 11 and 20.
- January 22: Beneficiaries born between 21 and 31.
How will the payments go this 2025?
You need to remember that monthly payments are made on a specific schedule. SSI payments will be received on the first day of each month.
On the second Wednesday of each month, beneficiaries born between the 11th and 10th of any month will receive their payments. On the third Wednesday of each month this will occur for beneficiaries born between the 11th and 20th, the fourth Wednesday of each month will be reserved for those born in the last third (21st through the 31st of each month) and they will receive their payment.
Where can I find the complete payment schedule?
The official schedule is available on the SSA website for everyone, and you may receive it in the mail if you are enrolled in the administration’s postal services.
So, you now have everything you need to organize this 2025 financially. Don’t forget to mark your calendar for when to receive each payment and stay tuned for updates from the SSA. And Happy New Year!