Starting a new year always brings with it adjustments and expectations, and for millions of Social Security beneficiaries in the United States, 2025 will be no exception. This program, which is essential for the economic stability of retirees, people with disabilities, and low-income families, comes with wonderful news: it will apply an increase in monthly payments for the cost of ºliving adjustment (COLA), which, although small, will help those who depend on this income.
Social Security is probably the most important federal program, and has at least 70 million beneficiaries around the country. This program ensures that all beneficiary citizens can live in decent conditions despite not having high incomes.
Every year, the SSA (Social Security Administration) adjusts the COLA, depending on how inflation has increased or decreased in the year, so 2025 will be affected by a 2.5% increase in payments.
Dates to keep in mind for Social Security payments in 2025
If we look at the SSA payment calendar, we will see that beneficiaries who qualify for the Old-Age, Survivors, and Disability Insurance (OASDI) program will receive their first check this coming Wednesday, January 8, but it will only apply to those who claimed their benefits after May 1997, or who did not claim between the 1st and 10th of any month.
For those who are not eligible, the SSA has also scheduled its payments:
- January 15 if you were born between the 11th and the 20th of any month (and you can access between $1,948 and $4,995 depending on the category you belong to)
- On January 22, those born between the 21st and the 31st of each month will receive their amounts
- January 31 would be the day when beneficiaries of the Supplemental Security Income (SSI) receive their checks with estimated amounts between $715 and $1,450
What do I do if I don’t receive my payment on the scheduled date?
Don’t worry and don’t panic, it’s best to check your profile on the SSA website for more information. If you can’t find it, the SSA recommends waiting three days after the issue date to contact customer service.
How is the COLA calculated?
The calculation of this benefit is based on the Consumer Price Index for Urban Wage Earners and Administrative Workers (CPI-W), which measures changes in the prices of essential products and services (or basic necessities), such as food, medical care or housing.
To determine the exact adjustment, the ASS compares the CPI-W of the third quarter of the current year with the third quarter of the previous year, and the idea with this increase or decrease in the adjustment is that users can continue making their purchases (and practically living) without noticing the increases in inflation.
How much will the beneficiaries earn with the COLA increase?
Well, each beneficiary will receive a “personalized” increase. This means that two retirees will not receive the same amount of money, but it will depend on the retirement age of each of them and how much tax they paid during their working lives.
- For retirees, the average amount will increase by $48 (reaching $1,948)
- Survivors will see their payment increase by $38 ($1,546)
- People with disabilities will also see an increase of $38, reaching $1,575
And finally, individual SSI beneficiaries will see a slight increase of $24 (reaching $967)
Regarding the maximum benefits of the COLA increase, the data are as follows:
- Retirees: Increase of 122 that will make their bonuses reach $4995
- Survivors: Increase of $91 that will make them reach 3744
- Disabled people: will reach $3918 after an increase of $96
- SSI couples: after an increase of $35, their accounts will reach $1450