The much-anticipated announcement of the 2025 Social Security cost-of-living adjustment (COLA) is just around the corner.
Early projections estimate a 2.5% increase, lower than the 3.2% hike seen in 2024, but still offering a modest boost to help beneficiaries keep pace with inflation.
While much of the attention is on the COLA announcement date, there are two other crucial dates to mark on your calendar for 2025.
Here’s a breakdown of the three essential dates Social Security recipients should know.
October 10, 2024: The 2025 COLA Announcement
The Social Security Administration (SSA) will officially announce the 2025 COLA on October 10, 2024.
This announcement is highly anticipated, as it follows the release of the September 2024 Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), the key inflation data used to calculate the adjustment.
The 2025 COLA is determined by comparing the average CPI-W from the third quarter (July, August, September) of 2024 with the same period in 2023.
The percentage difference translates into the COLA that will be applied to your Primary Insurance Amount (PIA), which is the benefit you qualify for at full retirement age (FRA).
This ensures that your benefits keep pace with inflation, though they are first adjusted based on when you filed for Social Security.
You can get a rough estimate of your 2025 benefit by applying the 2.5% COLA estimate to your current check. For example, if you’re receiving $2,000 per month, the 2025 COLA would add another $50 to your monthly benefit, making it $2,050.
December 2024: Personalized COLA Notices
In early December, the SSA will begin sending personalized COLA notices to all beneficiaries. These notices will detail exactly how much you’ll receive in 2025, accounting for any adjustments due to your PIA and other factors.
If you have a my Social Security account, you can access this notice online through the Message Center by mid-December.
Signing up for email or text message alerts will notify you when your notice becomes available. For those without online accounts, COLA notices will arrive via mail throughout December.
Given the volume of beneficiaries, the SSA advises not to contact them about missing notices until January 2025.
These personalized notices will provide the exact figures for your 2025 Social Security checks, so they’re a crucial resource for your financial planning.
January 2025: First COLA Payments
The 2025 COLA will officially be applied to your December 2024 benefit, but since Social Security payments are issued the month after they are due, the first payment reflecting the COLA will arrive in January 2025.
Here’s when your first check with the 2025 COLA will arrive, based on your birthdate:
- January 8, 2025: If you were born between the 1st and 10th of any month.
- January 15, 2025: If you were born between the 11th and 20th.
- January 22, 2025: If you were born between the 21st and 31st.
This payment schedule will continue for the rest of the year, with checks distributed on the second, third, or fourth Wednesday of every month based on your birthdate.
For those receiving Supplemental Security Income (SSI), the first payment reflecting the 2025 COLA will arrive on December 31, 2024, instead of January 1, as January 1 is a federal holiday.
Planning for 2025
Once you receive your COLA notice in December, you can start planning your budget for 2025. Though the COLA isn’t a life-changing increase for most, it can help offset some inflationary pressures.
If you have questions about how your benefits will change, it’s a good idea to wait until you’ve received your COLA notice, as it will answer many of your questions.
Marking these three dates on your calendar—October 10, December 2024, and January 2025—will help ensure you stay informed about your benefits and are prepared to manage your income next year.
FAQs
When will the 2025 Social Security COLA be announced?
The 2025 COLA will be announced on October 10, 2024.
How much will Social Security increase in 2025?
The 2025 COLA is expected to be around 2.5%, though this is subject to final CPI-W data.
When will I get my first check with the 2025 COLA?
Your first check with the 2025 COLA will arrive in January 2025, on either the 8th, 15th, or 22nd, depending on your birthdate.
How will I find out my exact 2025 benefit amount?
The SSA will send personalized COLA notices in December 2024, detailing your exact benefit amount.
Do SSI recipients get a COLA increase?
Yes, SSI recipients will see their first COLA-adjusted check on December 31, 2024.
