The 2025 COLA increase will boost benefits by about 2.5%. However, this Cost-of-living adjustment increase will not take effect until December 31, 2024, for some, while others need to wait until January 2025.
If you qualify for your January 1 payment scheduled for December 31, 2024, is because you are a recipient of the Supplemental Security Income. The good news is that you will receive the COLA increase before retirees and SSDI recipients. If you are an SSI recipient, there is some bad news though.
SSI, Social Security recipients get COLA on different dates
If you receive Supplemental Security Income your boost will be 2.5% too on December 31. Nevertheless, since the maximum SSI amounts and average payments are lower, you will not get the average 50 dollars extra retirees get.
This will be the only downside, but eligible recipients can get up to $967 after COLA. This will be the new maximum amount for SSI, up from $943. Eligible married couples will be able to get up to $1,450, up from $1,415.
An essential person will get up to $484, up from $472. The dates for retirees and SSDI recipients to get the 2025 cost-of-living adjustment increase will be:
- Cost-of-living adjustment on January 3
- Cost-of-living adjustment on January 8
- Cost-of-living adjustment on January 15
- Cost-of-living adjustment on January 22
How does the 2025 COLA increase compare to previous years?
The 2025 cost-of-living adjustment (COLA) for Social Security benefits will be 2.5%, which is lower compared to the increases in recent years. In 2023, the COLA was 8.7%, and in 2024 it was 3.4%.
- The 2.5% COLA for 2025 will result in an average monthly benefit increase of around $48, raising the average payment to nearly $1,920.
- The 2025 COLA is lower than recent years’ increases. But, it is higher than historic trends, especially during the Great Recession when inflation was low.
- COLAs help Social Security recipients keep up with rising prices for essentials like food and housing. They have been automatic since 1972.
- Some seniors and experts argue that the 2.5% COLA is too low. It doesn’t reflect the inflation retirees face, especially in healthcare and housing costs.
- Social Security is the main income for 40% of older Americans. So, COLAs are vital for an inflation-proof retirement income.
Eligibility for Social Security COLA in January 2025
For your information, you will receive the cost of living adjustment increase on January 3, 2025, if you began receiving Social Security before May 1997. Or if you are receiving SSI and Social Security simultaneously.
COLA will be included in your January 8 payment if you do not qualify for the payment on the 3 and you meet the birthday requirement (born from 1-10). Of course, all these January payments require having file for retirement or SSDI.
Americans on Social Security born from 11-20 will get the COLA increase on January 15. It will be on January 22 if your birthday falls from 21-31. On average, Social Security will give about $49 dollars extra to retirees.
- Source:
- https://www.ssa.gov/news/press/factsheets/colafacts2025.pdf
- https://www.ssa.gov/pubs/EN-05-10031-2025.pdf