The 2025 Cost-of-Living Adjustment (COLA) for Social Security benefits is officially here, promising recipients a much-needed boost to combat inflation. Starting in January, beneficiaries of Social Security, Social Security Disability Insurance (SSDI), and Supplemental Security Income (SSI) will see a 2.5% increase in their monthly checks.
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Here’s everything you need to know about the COLA increase, including how much you can expect and when your first enhanced payment will arrive.
Why Is There a COLA Increase?
Each year, the Social Security Administration (SSA) adjusts benefits to keep pace with inflation. The adjustment is tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), comparing the third quarter of the previous year to the same period in the current year. For 2025, this calculation led to a 2.5% increase, ensuring recipients maintain their purchasing power amid rising costs.
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How Much More Will You Receive?
The COLA increase translates to an average boost of $48 per month for Social Security beneficiaries. Here’s how it impacts different groups:
- Retirement and Survivor Benefits: Expect an average increase of $48.
- Social Security Disability Insurance (SSDI): Monthly checks will reflect the same percentage increase.
- Supplemental Security Income (SSI): Payments also rise by 2.5%, ensuring recipients get the same adjustment as other beneficiaries.
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When Will You See the Increased Payment?
Your first increased check will depend on your birth date and the Social Security payment schedule:
- Birthdays Between the 1st and 10th: Payments will arrive on the second Wednesday of January 2025 (Jan. 8).
- Birthdays Between the 11th and 20th: Payments will be sent on the third Wednesday of January 2025 (Jan. 15).
- Birthdays Between the 21st and 31st: Checks will be distributed on the fourth Wednesday of January 2025 (Jan. 22).
For those receiving SSI, payments typically arrive on the first of the month, except when the date falls on a weekend or holiday. For 2025, these payments arrived in December 2024.
If you began receiving Social Security before May 1997, your increased payment arrived on January 3, 2025.
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Stay Informed About Your Benefits
The COLA adjustment is a critical mechanism for maintaining the financial stability of millions of Americans relying on Social Security benefits. If you want to dive deeper, review the Social Security payment schedule and verify your updated payment amounts directly through your SSA account.
Keep an eye on your January checks and take advantage of this adjustment to better plan your budget for the year ahead!
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