Tejendra KhandveMore than 70 million Americans are waiting for the official approval of the 2025 Social Security payment increase, which will include a cost of living adjustment (COLA). The Social Security Administration (SSA) plans to begin issuing payments with the COLA adjustment in January. Next month, the Bureau of Labor Statistics is expected to release the official COLA figure, which will determine the new payment levels. While predictions from the Senior Citizens League (TSCL) suggest the increase could range from 2.73% to 3.2%, the exact percentage is still pending.
Here’s what you need to know about the new payment schedule, how the COLA increase will affect beneficiaries, and when you can expect to receive your adjusted Social Security benefits in 2025.
First Social Security Payments with COLA Increase Arriving in 2025
The SSA distributes Social Security benefits on a set schedule each month, and the first payments in January 2025 will reflect the new COLA increase. Payments are divided into five groups depending on the type of benefit and the recipient’s birthdate.
- Supplemental Security Income (SSI) recipients will receive their first COLA-adjusted payment on December 31st, due to the New Year’s Day holiday on January 1st. As January 1st falls on a holiday, the SSA will move the payment date to the previous business day.
- For Retirement, Survivor, and Disability Insurance (RSDI) recipients, the first COLA-adjusted payments will begin on January 3rd (Friday). Subsequent payments will be issued based on the recipient’s birthdate, with payment dates falling on the second, third, and fourth Wednesdays of the month for those with birthdays spread throughout the month.
Here’s the breakdown of when each group of Social Security recipients will receive their first payment with the COLA increase:
| Benefit Type | Payment Date | Criteria |
|---|---|---|
| SSI (Supplemental Security Income) | December 31st (Tuesday) | No payment on January 1st; first COLA-increased payment will be made on December 31st. |
| Retirees, Survivors, Disabled (Before May 1997) | January 3rd (Friday) | Payments begin for those who applied before May 1997. |
| Retirees, Survivors, Disabled (After May 1997) | January 8th (Wednesday) | Payments for those born between May 11th and 20th. |
| January 12th (Wednesday) | Payments for those born between January 21st and 31st. | |
| January 22nd (Wednesday) | Payments for those born between January 1st and 10th. |
How Much Will Beneficiaries Receive with the 2025 COLA Increase?
Social Security benefits are based on various factors, including the recipient’s age, work history, disability status, and eligibility for specific programs like SSDI (Social Security Disability Insurance). The new 2.5% COLA increase will be applied to the monthly benefits for all eligible recipients.
Here’s an overview of the expected payment amounts for the major Social Security programs, with the 2.5% increase applied:
| Benefit Type | Average Monthly Payment (2025) | Increased Payment |
|---|---|---|
| Retirement Benefits | $1,948 | $1,995 (age 62: $2,778, age 67: $3,918, age 70: $4,995) |
| Survivor Benefits | $1,543 | $1,580 (individual: $1,817, 2 children: $3,744) |
| SSDI (Disability Insurance) | $1,575 | $1,616 (blind: $2,655, maximum payment: $3,918) |
| SSI Benefits | $715 | $734 (individual: $967, couples: $1,450, essential person: $484) |
The actual amount you receive depends on your specific eligibility, with factors like age and work history influencing the final payment. For example, those who retire early or have additional disabilities may receive higher amounts.
Conclusion
The 2025 Social Security increase, driven by the official COLA adjustment, promises higher monthly benefits starting in January. The first payments, reflecting the new increase, will be made in December 2024 for SSI recipients, and throughout January for other beneficiaries, depending on their birthdate and program eligibility. While the COLA increase may not be as high as some have speculated, it will still provide essential relief to millions of Americans, helping Social Security recipients keep up with inflation.
