As 2025 approaches, many people are eagerly awaiting the announcement of the next Social Security cost-of-living adjustment (COLA). The COLA is an important update because it helps retirees and others on Social Security benefits keep up with inflation. While the projected 2025 COLA is expected to be around 2.5%, this amount could still change slightly before the final announcement.
In this article, we’ll look at key dates related to the 2025 COLA, what these adjustments mean for your Social Security checks, and how you can prepare for the changes.
Oct. 10, 2024: The Announcement of the 2025 COLA
On Oct. 10, 2024, the Social Security Administration (SSA) will officially announce the 2025 COLA. This will be based on the average Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) data from July, August, and September of 2024. This data will be compared to the same period in 2023 to calculate the percentage increase.
Although the COLA is not directly added to your monthly checks, it is applied to your primary insurance amount (PIA). Your PIA is what you would get if you applied for Social Security at your full retirement age (FRA). If you applied earlier or later, your monthly benefit will adjust based on when you started receiving payments.
For example, if you’re currently receiving $2,000 a month and the COLA is 2.5%, your benefit would increase by $50 per month in 2025, bringing your total to $2,050.
December 2024: Personalized COLA Notices
In early December 2024, the SSA will send out personalized notices to all Social Security beneficiaries. These notices will tell you exactly how much you will receive in 2025, including the COLA adjustment. If you have a “my Social Security” account, you will be able to view this notice online through the Message Center.
The SSA will also mail out COLA notices throughout December. If you don’t receive your notice right away, don’t worry. The SSA advises that you wait until January 2025 to contact them if your notice hasn’t arrived by then.
January 2025: First Checks with 2025 COLA Go Out
Your first Social Security check with the 2025 COLA increase will be sent out in January 2025. The exact date depends on your birthdate:
- Born 1st-10th: You will receive your check on Jan. 8, 2025.
- Born 11th-20th: Your check will be issued on Jan. 15, 2025.
- Born 21st-31st: Your payment will arrive on Jan. 22, 2025.
This pattern will continue each month, with payments being made on the second, third, or fourth Wednesday, depending on your birthdate.
If you receive Supplemental Security Income (SSI), you’ll get a boost in your benefits sooner. Since Jan. 1, 2025, is a federal holiday, SSI checks will go out on Dec. 31, 2024.
The 2025 Social Security COLA may not be as high as the previous year, but it still represents an important increase for beneficiaries. The adjustment helps recipients maintain their purchasing power despite inflation. As we await the final numbers, it’s a good idea to prepare by checking your “my Social Security” account and making sure your contact information is up to date so you can receive your personalized COLA notice in December.
By staying informed, you’ll be better equipped to plan your budget for the coming year. If you have questions about your benefits, you can always contact the SSA, but be sure to wait until you’ve received your official notice to avoid unnecessary delays.
