Millions of people benefiting of the Social Security are about to receive their first round of January 2025 retirement checks. These payments will reach up to $4,993.25 by check for those who retire at age 70, thanks to the 2.5% cost of living adjustment (COLA) applied to fiscal year 2024 figures.
Beneficiaries born between the 1st and 10th of each month will receive their regular monthly checks on January 8, 2025, according to the schedule established by the Social Security Administration (SSA). The distribution of retirement checks occurs in three different waves, depending on the birthday of each beneficiary, which allows for an orderly and efficient process in the delivery of payments.
Who can receive up to $5,108 from Social Security in January
The amount that retirees receive is based on several factors, such as retirement age, the number of years of contributions to the system and the total contributions made during their working life. Those who decide to retire at age 70 can expect to receive up to $4,993 per month.
For those who choose to retire at age 62, the youngest age to access benefits, the maximum amount they could receive is $2,776.75 per month, also adjusted by the COLA. In 2025, the maximum Social Security benefit amounts to $5,108 per month or $61,296 per year.
However, consider that most beneficiaries do not receive this maximum amount.
Delaying retirement is the trick to a juicier payment
To reach the maximum, a person would have to have postponed receiving benefits until age 70 and have earned the maximum taxable amount ($176,100 in 2024) for at least 35 years. For those who begin receiving benefits at full retirement age — 66 or 67, depending on date of birth — the maximum amount will be $4,043. In contrast, the average Social Security check for retired workers in November 2024 was about $1,925.
Recipients can access a personalized estimate of how much they can expect to receive each month through the calculator provided by the SSA, which takes into account their work history and the amounts contributed.
It is relevant to mention that monthly Social Security payments are different from other benefits administered by the SSA, such as Disability Insurance (SSDI) or Supplemental Security Income (SSI). SSI payments are sent at the beginning of each month to people with significant disabilities that affect their ability to work.
The significance of Social Security in America
Since its establishment in 1935, Social Security has been a truly important and consequential program that has provided economic security to millions of retirees and people with disabilities (of any age) in the United States. This program is funded through payroll taxes contributed by both employers and employees.
However, analysts warn that if changes are not implemented in the system, the SSA could face difficulties in guaranteeing full payments to beneficiaries starting in 2034. This scenario is a product of the increase in the number of retirees and the decrease of workers who contribute to the system. Therefore, it is up to Congress to take the necessary steps to ensure that beneficiaries do not experience reductions in their payments.