Tejendra KhandveAs we near the close of 2024, Social Security recipients are set to receive three more payments of up to $900 before the new Cost-of-Living Adjustment (COLA) increase takes effect in January 2025. With inflation putting pressure on household budgets, this COLA adjustment is expected to provide a 2.5% increase, offering added financial relief for beneficiaries.
In this article, we will review the remaining Social Security payments for 2024, highlight the unique payment schedule in December, and explain the differences in payment funding between Social Security programs.
November and December Payment Schedule
The Social Security Administration (SSA) follows a set schedule for disbursing payments to Social Security and Supplemental Security Income (SSI) recipients. Here’s a breakdown of the final payment dates for 2024:
- November 1: The first SSI payment for November, up to $900, will be issued.
- November 29: The second SSI payment, which will cover December’s benefit in advance, will be issued (since December 1 falls on a Sunday).
- December Social Security Payments: Payments for Social Security retirement benefits will be distributed based on birth dates, with payments sent out on December 11, 18, or 25.
This staggered payment schedule ensures that beneficiaries continue to receive their benefits without delay, even during the busy holiday season.
Why Are There Two SSI Payments in November?
Normally, SSI recipients receive their monthly payment on the 1st of each month. However, since December 1, 2024, falls on a Sunday, the SSA will issue the December payment in advance on November 29. This ensures recipients have access to their funds before the holiday season and avoids any delays caused by weekends or federal holidays.
Here’s a quick look at the SSI payments for November and December:
- November 1: Regular SSI payment for November, up to $900.
- November 29: Advance payment for December, up to $900.
This early payment adjustment is common when scheduled payment dates fall on weekends or holidays, ensuring there is no interruption in benefits.
Funding Differences Between SSI and Social Security
Although both SSI and Social Security benefits are managed by the SSA, they are funded through different channels:
- SSI (Supplemental Security Income): Funded by the U.S. Department of the Treasury, SSI is designed to help low-income individuals, including those with disabilities or limited resources. Since it’s an assistance program, SSI often has adjustments like early payments when the scheduled date falls on a weekend or holiday.
- Social Security (Retirement and Disability): Funded by payroll taxes from workers and employers, Social Security benefits rely on contributions made throughout a worker’s career. These payments are less likely to experience advance disbursements as seen with SSI.
What Is the 2025 Cost-of-Living Adjustment (COLA)?
Starting in January 2025, Social Security beneficiaries will receive a 2.5% increase in their monthly payments due to the annual COLA adjustment. This adjustment helps beneficiaries keep up with rising living costs driven by inflation.
This COLA increase will apply to:
- SSI recipients: They will see a slight increase in their monthly payments starting in January.
- Social Security retirees and disability beneficiaries: All recipients across SSA-administered programs will receive this COLA adjustment.
While the 2.5% boost may not completely offset inflation, it will help maintain the purchasing power of retirees, people with disabilities, and low-income households.
Social Security Payment Distribution by Birth Date
Social Security retirement payments are distributed based on the beneficiary’s birth date, with payments sent out on specific Wednesdays each month:
- 1st–10th of the month: Payments are issued on the second Wednesday.
- 11th–20th of the month: Payments are issued on the third Wednesday.
- 21st–31st of the month: Payments are issued on the fourth Wednesday.
This schedule helps the SSA manage funds more effectively and ensures that recipients receive their payments on time.
Summary of the Last Three Payments for 2024
The final payments for 2024 will include:
- SSI Payment on November 1: The standard payment for November, up to $900.
- SSI Payment on November 29: The advance payment for December, also up to $900.
- Social Security Retirement Payment in December: This will be based on the beneficiary’s birth date and could be up to $900 or more, depending on eligibility.
Beneficiaries should stay updated on payment schedules and any changes by checking the SSA’s official website, where they can find the latest details about their benefits.
Final Thoughts
For Social Security recipients, the last few months of 2024 will see three significant payments, providing financial support before the 2025 COLA adjustment begins. While the COLA boost in January will offer some relief, the advanced payments ensure that beneficiaries are prepared for the upcoming holiday season without disruption.
By understanding the payment schedule and the COLA adjustment, beneficiaries can better plan their finances and stay informed about future changes.
