The Social Security Administration has announced when the 2025 COLA increase will take place next year. What is more, you can learn the new payment dates if you are collecting retirement benefits in the United States. New applicants and workers in their 50s or 60s can also find out here if they qualify or not for these checks or direct deposits from the Agency. If you do not want to miss out on any details regarding this money delivery and eligibility, check it out now.
As a matter of fact, the Social Security Administration (SSA) has confirmed that the 2025 COLA increase will be about 2.5%. So, it will be about 0.7% lower than in 2024 and 6.2% lower than in 2023. In the last decade, COLAs have been about 2.6% on average. Thus, it will be 0.1% less in 2025. Still, it is much better than a reduction.
Who will get the first Social Security payments with the 2025 COLA increase?
The Supplemental Security Income (SSI) payments, a Federal benefit, will be the first to send the 2.5% boost. Therefore, all SSI recipients will receive a lower-than-average increase on December 31, 2024. This will make Supplemental Security Income recipients the first group to enjoy the 2025 COLA increase and in 2024.
After the December 31 payment for SSI, Social Security has scheduled a payment on January 3, 2025. Hence, this will be the first payment in 2025 with the cost of living adjustment boost of 2.5%. This payday will only be for 2 groups of beneficiaries. On the one hand, it will be delivered to some Disability Insurance (SSDI) beneficiaries.
On the other hand, it will also be delivered to some retirees. Bear in mind that there are just 2 ways to qualify for the January 3 payment:
- having started receiving Social Security payments before May 1997
- being an eligible recipient of the Supplemental Security Income payments while on retirement or SSDI
When will retirees and SSDI recipients will get the 2025 COLA increase if they do not qualify for a check on January 3?
Since SSI is sent on December 31, 2024, and those on SSI and Social Security, and pre-May 1997 recipients get it on the 3rd, others need to wait longer for their monthly payment.
Actually, the next round of payments after Jan. 3 will be issued on the second, third, and fourth Wednesday.
- retirement or SSDI benefit payments will be due on January 8: if born from 1-10
- retirement or SSDI benefit payments will be due on January 15: if your birthday is from 11-20
- retirement or SSDI benefit payments will be due on January 22: If your birth date is from 21-31
What are the requirements to get Social Security retirement benefit payments in 2025?
Social Security payments are for American workers who meet several requirements. Among these requirements, there are 2 which are essential. Or else, you will not qualify.
Workers must have earned enough work credits to be able to file for retirement benefits in 2025. As of 2024, the minimum number of work credits a worker needs is 40.
This number of work or Social Security credits may be lower if you apply for Disability Insurance rather than for retirement benefits. So, younger workers may need fewer credits for SSDI.
Do not forget that workers cannot apply for retirement benefits until they are 62 years old. This is the earliest age someone can get money from the Administration as a retiree.
The 2025 COLA increase has affected the amount of earnings you need per year to get up to 4 work credits. For your information, you can get from 1 work credit and up to 4 per year.
Social Security’s COLA Fact Sheet states that the quarter of coverage is $1,730 in 2024 and it will increase to $1,810 in 2025. As a result, you will need more money in earnings to get the same number of work credits. Once you get 40 credits and turn 62, you can file for Social Security, which is necessary to get benefits in retirement.