New York – At least three dates are significant in the conversation regarding the Upcoming Cost of Living Adjustment (COLA) for Social Security Checks by 2025.
Mid-October
The first key period is mid-October, as that is when the Social Security Administration (SSA) officially announces the figure.
So far, the agency has not specified the exact date for this announcement.
Last year, the announcement occurred on October 12th. The SSA reported that benefits would increase by 3.2% in 2024 for more than 71 million people in the United States.
The reason the agency announces the COLA amount for the upcoming year in October is that Social Security needs to factor in inflation figures up to September of this year to determine the COLA Adjustment.
“The Social Security Law outlines how the COLA is calculated. The Social Security Act ties the annual COLA to the increase in the Consumer Price Index for Wage Earners Urban and Clerical Workers (CPI-W) as determined by the Department of Labor’s Bureau of Labor Statistics,” the agency stated on its website.
January 2025
Another crucial date is January 2025. By that month, most Social Security beneficiaries will receive their first electronic payment reflecting the new adjustment.
However, it should be noted that in some cases, the first checks have been processed earlier for certain beneficiaries.
For example, the first COLA checks for 2024 were sent to Supplemental Security Income (SSI) recipients on December 29.
This was due to January 1st being the standard payment date for this group, which coincided with New Year’s Day.
“More than 66 million Social Security beneficiaries will see the 3.2 percent Cost-of-Living Adjustment (COLA) beginning in January 2024. The increase in payments for approximately 7.5 million SSI beneficiaries will start on December 29, 2023. (Note: some individuals receive both Social Security and SSI benefits),” Social Security detailed at the time.
Generally, the SSA adheres to a birthday-based distribution schedule. Each week, Social Security processes a set of payments, including checks for a specific group of beneficiaries based on their birthdays.
Early December
“Individuals who have a personal account on my Social Security can view their COLA notice online, which is secure, easy, and faster than receiving a letter in the mail. People can also opt to receive a text or email alert when a new message is available for them, such as the COLA notice on my Social Security,” the SSA explained on its website.
Although there is still about a month and a half to go before the official announcement of the new COLA, experts on the subject have started to make their estimates regarding the increase for 2025.
The estimate does not exceed 2.7% due to the latest inflation calculations.
The COLA is an automatic annual adjustment to Social Security benefits. Its purpose is to ensure that the purchasing power of Social Security and SSI benefits is preserved against inflation.
Continue reading:
Social Security COLA: When will the new increase in checks be announced?
Increase in Social Security COLA checks by 2025: The good news from the new estimate
New York – At least three dates are key in the discussion about the Upcoming Cost of Living Adjustment (COLA) on Social Security Checks by 2025.
Mid-October
The first important time period is mid-October since that is when the Social Security Administration (SSA) officially announces the figure.
So far, the agency has not said exactly when it will announce the number.
Last year, the announcement was made on October 12th. The SSA reported that Benefits would increase by 3.2% in 2024 for more than 71 million people in the United States.
The reason the office announces the COLA amount for the next year in October is because Social Security needs to account for inflation figures up to September of this year to determine the COLA Adjustment.
“The Social Security Law establishes how the COLA is calculated. The Social Security Act ties the annual COLA to the increase in the Consumer Price Index for Wage Earners Urban and Clerical Workers (CPI-W) as determined by the Department of Labor’s Bureau of Labor Statistics,” the entity stated on its website.
January 2025
Another important date is January 2025. By that month, most Social Security beneficiaries will receive their first payment electronically which will reflect the new adjustment.
However, it should be noted that in some instances the first checks have been processed earlier to certain beneficiaries.
For example, the first COLA checks for 2024 were sent to Supplemental Security Income (SSI) recipients on December 29.
What happened was that January 1st, the day of the month on which money is usually sent to this group, was a New Year’s holiday.
“More than 66 million Social Security beneficiaries will see the 3.2 percent Cost-of-Living Adjustment (COLA) beginning in January 2024. The increase in payments for approximately 7.5 million SSI beneficiaries will begin on December 29, 2023. (Note: some people receive both Social Security and SSI benefits),” Social Security detailed at the time.
Generally, the SSA follows a birthday-based distribution schedule. of the beneficiaries Each week, Social Security processes a round of payments and includes checks for a certain group of beneficiaries based on their birthday.
Early December
“People who have a personal account my Social Security can view their COLA notice online which is safe, easy, and faster than receiving a letter in the mail. People can also choose to receive a text or email alert when there is a new message waiting for them, such as the COLA notice on my “Social Security,” the SSA explained on its website.
Although there is still about a month and a half to go before the official announcement of the new COLA, experts on the subject have begun to launch their estimates on the amount of the increase for 2025.
The figure does not exceed 2.7% due to the latest inflation calculations.
The COLA is an automatic adjustment to Social Security benefits that is made annually. The purpose is to ensure that the purchasing power of Social Security and SSI benefits is not reduced due to inflation.
Benefits of Understanding COLA Adjustments
- Financial Planning: Knowing when COLA adjustments occur allows beneficiaries to budget effectively.
- Improved Purchasing Power: Adjustments help maintain beneficiaries’ purchasing capabilities against inflation.
- Staying Informed: Being aware of these changes keeps beneficiaries proactive in financial management.
Practical Tips for Beneficiaries
- Monitor COLA Announcements: Make a habit of checking SSA announcements around mid-October.
- Use Online Accounts: Create a my Social Security account to access information quickly.
- Plan Ahead: Adjust your budgets in anticipation of the increased benefits.
- Consider Financial Advice: Consult with a financial advisor, especially if living on a fixed income.
Frequently Asked Questions (FAQs)
What is COLA?
COLA, or Cost of Living Adjustment, is an annual increase in Social Security benefits to help maintain the purchasing power of beneficiaries amidst inflation.
When will the 2025 COLA be announced?
The official announcement for the 2025 COLA is expected around mid-October 2024.
How is COLA calculated?
COLA is calculated based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) as set by the U.S. Department of Labor.
Recent Trends in COLA Adjustments
In the last decade, COLA percentages have fluctuated significantly due to varying inflation rates. For example:
| Year | COLA Percentage |
|---|---|
| 2014 | 1.5% |
| 2015 | 0.0% |
| 2021 | 1.3% |
| 2022 | 5.9% |
| 2024 | 3.2% |
Continue reading:
Social Security COLA: When will the new increase in checks be announced?
Increase in Social Security COLA checks by 2025: The good news from the new estimate
