For retirees who began receiving Social Security benefits before May 1997, there are some important updates regarding payment schedules and the upcoming 2025 Cost-of-Living Adjustment (COLA).
Here’s what you need to know about the remaining payments in 2024 and the expected increase in early 2025.
November 2024 Payment Update
The Social Security Administration (SSA) has made a scheduling adjustment for November payments for pre-1997 retirees. Instead of the usual date of November 3, the November payment will be issued on November 1.
This change avoids delays since November 3 falls on a Sunday, when banks are closed and unable to process payments. By moving the payment date to November 1, SSA ensures that retirees receive their funds without interruption.
Summary for November Payments:
- Payment Date: November 1, 2024
- Reason for Early Payment: November 3 is a Sunday, so payments are issued two days early.
- Other Payments: No additional Social Security retirement payments will be issued in November for pre-1997 retirees.
If you are a recipient of both Social Security and Supplemental Security Income (SSI), you will receive your SSI payment on November 1. Additionally, SSI recipients can expect their December payment early, on November 29, due to timing considerations around the New Year holiday.
December 2024 Payment Schedule
The December payment for retirees who began receiving Social Security before May 1997 will proceed as usual, arriving on December 3, 2024. This payment will be the last one before the 2025 COLA increase takes effect.
Summary for December Payments:
- Payment Date: December 3, 2024
- COLA Impact: The 2025 COLA increase will be reflected in payments starting in January 2025.
2025 COLA Increase: What to Expect
The SSA has announced a 2.5% COLA increase for 2025, which is set to boost monthly payments beginning with the January 3, 2025 payment.
This increase translates into approximately $50 more per month for the average retiree, totaling an extra $600 annually. For retirees relying on Social Security as a primary income source, this adjustment provides a modest yet crucial financial boost to help offset rising costs of living.
COLA Adjustment Impact:
- Effective Date: January 3, 2025
- Average Monthly Increase: Approximately $50
- Annual Increase: Estimated at $600
Summary of Upcoming Dates and Adjustments
| Month | Payment Date | Adjustment Type |
|---|---|---|
| November | November 1, 2024 | Early payment |
| December | December 3, 2024 | Regular payment schedule |
| January | January 3, 2025 | COLA increase applied |
These adjustments ensure that retirees receive payments promptly and benefit from the annual COLA increase starting in January.
By staying informed about these changes, pre-1997 retirees can better manage their financial planning and prepare for the slight income increase in 2025.
