As we approach 2025, millions of Social Security beneficiaries are eager to know how much their payments will increase due to the cost-of-living adjustment (COLA).
The 2025 COLA is currently projected to be around 2.5%, slightly lower than the 3.2% increase for 2024. While this could still fluctuate, here are three critical dates you need to know to stay informed about the 2025 COLA.
1. October 10, 2024: Official COLA Announcement
The Social Security Administration (SSA) will officially announce the 2025 COLA on October 10, 2024.
This announcement is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the third quarter of 2024, which includes data from July, August, and September.
The SSA will average these figures and compare them to the same period in 2023 to calculate the COLA.
Although the COLA is applied to your Primary Insurance Amount (PIA)—the amount you’re eligible for at full retirement age (FRA)—you can still estimate your increase. For example, if you currently receive $2,000 per month and the COLA is set at 2.5%, you would receive an additional $50 per month, bringing your new total to $2,050.
2. December 2024: Personalized COLA Notices Sent Out
In early December 2024, the SSA will begin sending personalized COLA notices to all Social Security beneficiaries. These notices will detail your new payment amount for 2025, including any adjustments due to the COLA.
If you’ve created a my Social Security account before mid-November, you can access your COLA notice online through the Message Center. You can also sign up for email or text alerts to be notified when your notice is available.
If you’re waiting for a mailed notice, they will arrive throughout December, but the SSA advises not to contact them about missing notices until January 2025.
3. January 2025: First Checks with COLA Adjustments
The first payments reflecting the 2025 COLA will arrive in January 2025. Although the COLA is technically applied to your December 2024 payment, you won’t see the increase until the following month. The payment dates depend on your birthdate:
- Born on the 1st to 10th of the month: January 8, 2025
- Born on the 11th to 20th of the month: January 15, 2025
- Born on the 21st to 31st of the month: January 22, 2025
Recipients of Supplemental Security Income (SSI) will receive their payments earlier due to New Year’s Day being a federal holiday. SSI payments will go out on December 31, 2024.
The 2025 COLA will provide much-needed relief for Social Security beneficiaries, helping to offset rising living costs.
Keep these key dates in mind—October 10 for the COLA announcement, December 2024 for personalized notices, and January 2025 for your first COLA-adjusted payment. Once you know your new benefit amount, you can better plan your 2025 budget.
FAQs
What is the projected 2025 COLA?
The projected 2025 COLA is around 2.5%.
When will the 2025 COLA be officially announced?
The SSA will announce the 2025 COLA on October 10, 2024.
How will I know my new Social Security benefit amount?
The SSA will send personalized notices in December 2024 with your updated payment.
When will I receive my first 2025 COLA-adjusted payment?
The first COLA-adjusted payment will be in January 2025, based on your birthdate.
What if I receive SSI?
SSI beneficiaries will receive their first COLA-adjusted payment on December 31, 2024, due to the holiday.
