Millions of Americans are excited about the 2025 cost-of-living adjustment (COLA) for Social Security benefits, which will soon provide a welcome financial boost. If you’re a retiree, or receive Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI), you’re probably wondering when this increase will be added to your benefits. Here’s everything you need to know about the 2025 COLA increase, including how much you’ll receive and when to expect your first payment.
Boost
The Social Security Administration (SSA) has announced a 2.5% COLA increase for 2025. This is slightly lower than the 3.2% adjustment in 2024, but it’s still an important boost for beneficiaries who rely on these payments to keep up with rising living costs.
What does this 2.5% increase mean for you? Well, retirees who are receiving retirement benefits will see an extra $50 per month. If you’re receiving SSI, however, your increase will be smaller, adding about $23 per month.
Here’s a simple breakdown:
| Type of Benefit | Monthly Increase | Annual Increase |
|---|---|---|
| Retirement | $50 | $600 |
| SSI | $23 | $276 |
This extra amount may seem modest, but for many retirees living on fixed incomes, any increase can help make ends meet. For instance, the average monthly Social Security payment for retirees is $1,920. With the 2025 COLA, this payment will rise to $1,968, offering $600 more annually.
Variations
Not every retiree will get the same $50 monthly increase. The boost you receive depends on your current benefit amount. For example, if you’re receiving lower payments, say $900 a month, the 2.5% adjustment will only give you about $22.50 more each month. While this is still helpful, it’s a reminder that COLA increases are percentage-based, meaning the more you receive, the larger your dollar increase.
Timing
The big question everyone is asking: when will you actually see this extra money in your account? For retirees, the 2025 COLA increase will be applied starting in January 2025. The specific payment dates for Social Security benefits will fall on January 3, 8, 15, or 22, depending on your birth date. If you were hoping for a boost in October, November, or December 2024 payments, unfortunately, you won’t see the increase until the new year.
However, if you’re an SSI recipient, there’s good news! You won’t have to wait until January to get your increase. SSI payments are typically made on the first of the month. But because January 1, 2025, is a holiday, the SSA will send SSI payments for January a day early, on December 31, 2024. This means you’ll receive your 2.5% increase at the end of December, allowing you to start 2025 with a little extra in your pocket.
Final Thoughts
While the 2025 COLA increase is slightly lower than last year’s adjustment, it’s still a significant boost for many Americans. Whether you receive retirement benefits, SSI, or SSDI, the additional money each month can make a noticeable difference in your budget.
Remember that if you are on SSI, you’ll get your increase a little early in late December. But for everyone else, the wait is almost over, with your first increased payment arriving in January 2025. So, mark your calendar and prepare for a welcome bump to your Social Security benefits in the new year!
FAQs
How much is the 2025 Social Security COLA increase?
The 2025 COLA increase is 2.5% for all beneficiaries.
When will retirees see the 2025 COLA boost?
Retirees will receive their first increased payment in January 2025.
When will SSI recipients get their COLA increase?
SSI recipients will get their increase on December 31, 2024.
How much extra will retirees get with the COLA increase?
Retirees will receive an additional $50 per month, or $600 per year.
Will the COLA boost apply to October 2024 payments?
No, the COLA increase won’t apply to any 2024 payments for retirees.