As we approach the announcement of the 2025 Social Security Cost-of-Living Adjustment (COLA), it’s important for beneficiaries to be aware of a few key dates.
With projections putting the 2025 COLA around 2.5%, there are three important dates to mark on your calendar to keep up with how this adjustment will affect your benefits.
1. October 10, 2024: COLA Announcement
The Social Security Administration (SSA) will officially announce the 2025 COLA on October 10, 2024. This is when the final figure for the COLA is confirmed, based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
The September CPI-W figure, combined with the July and August data, will determine how much Social Security checks will increase in 2025.
Although the adjustment won’t apply directly to your monthly check, it will be factored into your primary insurance amount (PIA)—the benefit you would receive if you claimed Social Security at your full retirement age (FRA).
However, you can estimate how much extra you’ll receive by applying the COLA percentage to your current payment. For example, if the COLA is 2.5% and you’re currently receiving $2,000 a month, you’ll likely see an increase of $50 per month in 2025.
2. December 2024: Personalized COLA Notices
In early December 2024, the SSA will send out personalized notices to all Social Security beneficiaries detailing the exact amount of their new monthly benefits for 2025. These notices will be available both online and via mail.
If you have a my Social Security account, you’ll be able to access your COLA notice through your Message Center as soon as it’s available. Setting up a my Social Security account by mid-November will give you quicker access to this information. You can also opt for text or email alerts to notify you when your notice is ready.
Mailed notices will be sent throughout December, and the SSA advises beneficiaries to wait until January 2025 before contacting them regarding any missing notices.
3. January 2025: First COLA-Adjusted Payments
Although the COLA will apply to December 2024 payments, you won’t see the increase in your Social Security check until January 2025. The exact date of your payment will depend on your birthdate, as follows:
- Born 1st–10th: First check with the COLA arrives on January 8, 2025
- Born 11th–20th: First check with the COLA arrives on January 15, 2025
- Born 21st–31st: First check with the COLA arrives on January 22, 2025
For those who receive Supplemental Security Income (SSI), the COLA-adjusted payment will come even sooner, as SSI payments for January 1, 2025, will be issued on December 31, 2024, due to the federal holiday on New Year’s Day.
What to Expect in 2025
Once you receive your first COLA-adjusted payment in January, you can begin planning your budget for the year. The projected 2.5% COLA increase may help ease the burden of rising costs, though it’s lower than the 3.2% increase from 2024.
If you have any concerns or questions about how the 2025 COLA will impact your benefits, it’s best to wait until after you’ve received your personalized COLA notice in December.
This notice should clarify any specifics, including how the adjustment will be applied to your payment.
FAQs
How is the 2025 COLA calculated?
The COLA is based on the CPI-W data for the third quarter of 2024, compared to the same period in 2023.
When will I receive my first COLA-adjusted check?
Your first check with the 2025 COLA will arrive on January 8, 15, or 22, depending on your birthdate.
Can I get my COLA notice online?
Yes, if you have a my Social Security account, you can view your COLA notice in December.
What if I receive SSI? When will I see the COLA?
SSI beneficiaries will get their first COLA-adjusted payment on December 31, 2024, due to the holiday on January 1.
How much is the projected 2025 COLA increase?
Current projections suggest a 2.5% increase, though this could change when the final announcement is made in October.
