Social Security payments in the United States have a maximum amount each year that depends on several factors. The COLA each year means that the payment can reach a new maximum, but the truth is that until the new year begins we cannot get the new COLA to enjoy a higher benefit.
Therefore, if we are expecting to get the COLA early, the bad news is that it is not possible. The COLA increase will take effect immediately as of the first of the January 2025 payments. This means that the first of the SSI payments also has the COLA, even if that payment is front-loaded.
The idea behind this is very simple: the SSI payment is usually on the 1st of each month. If we take into account that the 1st of January 2025 is a holiday, the payment is sent on the immediately preceding business day. This makes it possible for the check to be on time for all beneficiaries. While it is true that the payment on that 31st day of December carries the COLA 2025, it is also true that this payment belongs to the January calendar.
In this sense, we are dealing with an advance payment, yes, but it is not the COLA that is being advanced, but the first payment for January. Social Security checks follow a closed schedule and the day of payment is rarely changed. So check the payment schedule carefully so you don’t run into financial problems.
What will the Social Security COLA be in 2025?
The COLA will cause Social Security checks to increase by 2.5%. While this is officially true, the truth is that each check increases slightly differently. Each category has its own set rules and the VA and Disability check or late retirement payment do not get that exact increase.
To find out what our check is for the entire year 2025 we just have to wait until we get the first of the payments in January. For the rest of 2025 we will have the same Social Security payment, so from there we can do the math on that.
Thus, the maximum Disability payments become $4,018. That same figure is for full-age retirees, i.e., at age 67. In the case of waiting until age 70 to retire, the payment can be up to $5,180, so in the case of having a maximum payment, we will be able to enjoy a fairly large benefit.
If we talk about the Supplemental Security Income (SSI) payment, the check stays very close to $1,000. The maximum payment for this extra Social Security benefit is $967 starting in 2025 thanks to the COLA. Having one of these checks to supplement our monthly benefit can be great news.