Social Security Payment Update for 2025: Key Details on the Upcoming Cost of Living Adjustments (COLA)
Hello everyone, and welcome back! I hope you’re all having a wonderful day so far. Today’s video is packed with important updates for anyone receiving Social Security benefits, whether you’re a retiree, receiving Supplemental Security Income (SSI), or disability benefits (SSDI). With just one month left before the new year, we’re gearing up for an exciting update—the Cost of Living Adjustment (COLA) increase for 2025.
In this video, we’ll go over the payment schedules, details on the COLA notice you should be receiving soon, and what you can expect as we approach the new year. Plus, if you’re interested in earning up to $200 in free stocks or cash, I’ve got a quick tip for you. Let’s dive right in!
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The 2025 COLA Increase: What You Need to Know
Last month, the Social Security Administration (SSA) announced the COLA increase for 2025, impacting all beneficiaries. This includes retirees, SSI recipients, and those receiving SSDI benefits. The COLA increase for 2025 has been set at 2.5%.
This adjustment is calculated based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPIW), which measures inflation. The CPIW rose by 2.5% from the third quarter of last year to the third quarter of this year, prompting the adjustment. While some argue that actual inflation rates were higher, the SSA uses a fixed formula to determine this increase, and unfortunately, 2.5% is the official rate.
Let’s break down what this means for your payments. For some beneficiaries, the increase will begin in December 2024, while others will see it reflected in their checks starting January 2025. We’ll dive deeper into the payment schedules shortly.
COLA Impact on Payment Amounts
Here’s an overview of how the 2.5% COLA increase will affect various beneficiaries:
Retirees: On average, retirement benefits will increase by about $50 per month.
SSI Recipients: Those receiving SSI will see their maximum monthly benefit rise slightly, with specific amounts detailed later.
SSDI Recipients: Disability benefit recipients will also see an increase, depending on their current payment amounts.
The average COLA increase over the past decade has been 2.6%, so this year’s 2.5% adjustment is slightly below the average. Last year, the COLA increase was 3.2%, reflecting higher inflation levels.
Key Payment Dates to Remember
Let’s talk about when you can expect to see these updated payments in your account. Depending on the type of benefit you receive, your payment dates will vary. Here’s what you need to know:
1. SSI Recipients:
You’ll receive two payments in November 2024. The first arrived on Friday, November 1, and the second will be sent on Friday, November 29.
December’s payment will arrive early on Tuesday, December 31, because January 1 is a holiday. This payment will include the 2.5% COLA increase.
2. Retirees:
Payments for retirees will follow the standard schedule in January 2025, based on birthdates:
Born between the 1st and 10th of the month: Payment on Wednesday, January 8.
Born between the 11th and 20th: Payment on Wednesday, January 15.
Born between the 21st and 31st: Payment on Wednesday, January 22.
3. Combined Social Security and SSI Recipients:
SSI payments for January will arrive on December 31, 2024, while Social Security payments will follow the usual schedule, starting January 3, 2025.
4. February 2025 Payments:
SSI beneficiaries will receive their February payments a day early, on January 31, 2025, since February 1 falls on a Saturday.
Understanding Your COLA Notice
The SSA is rolling out a newly designed and userfriendly COLA notice this year. Here’s what you need to know:
Simplified Design: The notice is just one page long and uses plain language, making it easy to understand your new benefit amount and any deductions.
Secure Online Access: If you have a My Social Security account, you can view your COLA notice online starting in late November. You’ll also receive notifications via email or text when it’s available.
Mail Delivery: If you haven’t opted for online notifications, you’ll receive your notice by mail in December.
To set up a My Social Security account and view your COLA notice sooner, visit [ssa.gov/myaccount](https://ssa.gov/myaccount). You’ll find details about your updated benefit amounts, Medicare Part B premiums, and more.
Average Benefit Amounts for 2025
Let’s take a closer look at how the COLA increase will affect average and maximum benefits next year:
SSI Recipients:
Individual max payment: $967 (up from $943).
Couples max payment: $1,450 (up from $1,415).
Retirees:
Max benefit at full retirement age (67): $4,018 (up from $3,820).
Average retirement benefit: $1,976 (up from $1,927).
Couples (Both Receiving Benefits):
Average benefit: $3,089 (up from $3,014).
Widowed Mothers with Two Children:
Average benefit: $3,761 (up from $3,669).
Widowers (Alone):
Average benefit: $1,832 (up from $1,788).
Disabled Workers with Spouse and Children:
Average benefit: $2,826 (up from $2,757).
All Disabled Workers:
Average benefit: $1,580 (up from $1,542).
Remember, these are averages and may not reflect your exact benefit amount. Your COLA notice will provide personalized details.
Maximizing Your Benefits
To ensure you’re fully prepared for the upcoming changes, here are some tips:
1. Check Your COLA Notice: Review it carefully to understand how the increase affects your specific benefits.
2. Plan for Medicare Adjustments: If you’re enrolled in Medicare, be aware of changes to Part B premiums and how they impact your net benefits.
3. Sign Up for a My Social Security Account: Access your information online for faster updates.
That’s all for today’s update! I hope you found this information helpful as we prepare for the 2025 COLA increase. If you did, please consider giving this video a thumbs up and subscribing to the channel for more updates. And don’t forget to check out the pinned comment for your chance to earn free cash or stocks with Robinhood.
Thank you so much for watching, and I’ll see you in the next video. Take care!
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