As 2024 draws to a close, Social Security Administration (SSA) beneficiaries are preparing to receive the last payments of the year. With November underway, only three disbursements of up to $900 remain before recipients see the Cost-of-Living Adjustment (COLA) increase in January 2025.
This adjustment, expected to be about 2.5%, offers some relief from inflation to those relying on Social Security. The SSA has scheduled these final payments, and while they may seem routine, there are some unique aspects to consider.
Social Security payments in November and December
The SSA follows a specific calendar for Social Security payments, with the first of each month being significant for those receiving Supplemental Security Income (SSI) benefits.
The SSI program, which serves over 7.5 million enrollees, is designed to support individuals with disabilities, blindness, or limited income. Typically, SSI payments are issued on the first of every month, but December 2024 brings an exception to this schedule.
In November, SSI beneficiaries will receive two payments. The first, already delivered on November 1, is up to $900, and the second will arrive on November 29. Why two payments in one month? This second check, also up to $900, is an advance on the December payment because December 1 falls on a Sunday, which is a non-business day. By moving the payment to November 29, the SSA ensures that SSI recipients won’t face any delays in receiving their funds during the holiday season in December.
How SSI and Social Security payments are funded
Understanding the funding differences between SSI and Social Security programs is essential. Although both are administered by the SSA, they rely on distinct sources for financing. SSI is funded by the U.S. Department of the Treasury, with additional support that some states may provide to their residents. In contrast, Social Security retirement benefits are funded through income taxes paid by all workers in the country.
Put simply, SSI is an assistance program funded by the Treasury, while Social Security retirement and disability benefits are funded by contributions from employees and employers. This difference explains why the SSI payment schedule might occasionally have additional adjustments, such as advancing payments when they fall on weekends or holidays.
When does the Cost-of-Living Adjustment take effect?
For those relying on Social Security, the new year will bring a 2.5% increase in payments thanks to the COLA. This adjustment is calculated annually to account for rising living costs, allowing beneficiaries to maintain their purchasing power despite inflation. However, the final payments for 2024 will reflect the usual amounts, with the adjustment applying only starting in January 2025.
This increase will benefit both Social Security retirees and those enrolled in other SSA-managed programs, including SSI. As a result, individuals dependent on these aids will see a small but welcome boost to their personal finances in the new year.
How are SSI and Social Security payments distributed?
The SSA adheres to a structured system for distributing SSI and Social Security payments. The advance payment of December funds on November 29 for SSI enrollees is a standard practice when the first of the month falls on a weekend or holiday. These adjustments are made to ensure that beneficiaries have access to their funds without any unnecessary delays.
Social Security retirement payments, on the other hand, are issued at different times within the month based on the recipient’s date of birth. Those born in the first ten days of the month receive their payments in the second week, while those born in the second or third set of ten days receive theirs later. This staggered system allows the SSA to manage funds efficiently and ensures that payments are distributed in an orderly manner.
Final details on the last Social Security payments of 2024
With these last three payments, the SSA will complete its 2024 payment schedule. In summary, beneficiaries will receive:
- okA first SSI payment on November 1, up to $900.
- A second SSI payment on November 29, corresponding to the December payment.
- A final payment in December for retirement beneficiaries, with checks arriving based on each person’s birth date.
To stay informed about these payments and future adjustments, beneficiaries can check the SSA’s website, where the schedule and any relevant changes are updated annually.
