New Year, New Payments: Beneficiaries Receiving January 2025 COLA in December 2024

As we approach the end of 2024, Social Security beneficiaries are in for a special treat: some will receive their January 2025 payments earlier than expected, complete with the newly adjusted Cost-of-Living Adjustment (COLA).

This is great news for millions of individuals who rely on Social Security benefits, as the COLA increase helps offset inflation and rising costs of living.

Here’s a look at who will be receiving their payments early, what the COLA increase means, and how to prepare for these changes.

Understanding the COLA Increase for 2025

Every year, the Social Security Administration (SSA) adjusts benefits to account for inflation, ensuring that beneficiaries’ purchasing power keeps pace with rising prices. This adjustment is called the Cost-of-Living Adjustment, or COLA.

For January 2025, beneficiaries will see a 3.2% COLA increase, which is in line with inflation trends and reflects the rising costs in goods and services, including food, housing, and healthcare. This increase will be applied to all Social Security and Supplemental Security Income (SSI) payments.

But, while the adjustment takes effect in January, some beneficiaries will receive their COLA-adjusted payments early in December 2024.

Who Will Receive Early Payments with COLA in December 2024?

The early COLA payments are scheduled for beneficiaries who normally receive their payments in the first few days of the month. Typically, Social Security and SSI payments are disbursed on a set schedule based on the birthdate of the recipient. However, because January 2025 falls on a holiday weekend, certain beneficiaries will get their COLA-adjusted payments earlier, in December 2024.

• Social Security Beneficiaries: Those who receive their payments on the third Wednesday of the month (typically those born on the 1st through the 10th of any month) will receive their payment early in December—on December 13, 2024.
• SSI Recipients: If you are on SSI, your payment for January 2025 will also be sent earlier in December 2024. The SSA has confirmed that SSI recipients will receive their January payment on December 29, 2024. This date ensures that recipients won’t miss out on their COLA adjustment despite the New Year’s holiday weekend.

These early payments come as part of the SSA’s ongoing effort to ensure that beneficiaries are not delayed due to the New Year’s holiday schedule, which can sometimes disrupt the regular payment timeline.

How the COLA Increase Will Affect Payments

The 3.2% COLA increase will mean more money in the pockets of Social Security and SSI beneficiaries. For example, Social Security recipients can expect an increase of about $55 per month on average, depending on their payment amount. The exact increase varies based on the individual’s benefit amount, but for many, this adjustment will make a meaningful difference in their financial well-being as they enter the new year.

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Here are some examples of the new average monthly benefit amounts after the COLA increase:

• For retirees: The average monthly benefit for a retired worker will increase by about $55, bringing it to approximately $1,895.
• For SSI recipients: Those receiving Supplemental Security Income will see their monthly benefits rise to $1,045 for individuals and $1,579 for couples.

What You Need to Know About the Early Payments

If you’re one of the beneficiaries receiving an early payment in December 2024, here are a few things to keep in mind:

• No Action Required: Beneficiaries do not need to take any action to receive these early payments. The Social Security Administration will automatically adjust the payment schedule to ensure you receive the COLA-adjusted payment.
• Check Your Payment Date: While most beneficiaries will receive their payments on the usual date, those receiving early payments should mark their calendars for the updated dates in December. This will help you plan ahead, especially if you rely on your payment for bills and other expenses.
• Plan for the New Year: The early payments in December will help cover expenses heading into January. It’s a great time to budget and plan ahead, especially with the COLA increase, which could provide some relief as the cost of living continues to rise.

How to Stay Informed

It’s always important to stay updated on changes to your Social Security or SSI payments. If you’re unsure about the timing of your payment or need to verify the COLA adjustment, the SSA offers several resources to help:

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• My Social Security Account: Visit the SSA website to create a “My Social Security” account where you can access your payment information, review your benefits, and stay informed about any changes.
• Social Security Office: You can also contact your local Social Security office or call the SSA’s toll-free number at 1-800-772-1213 for more information.

Conclusion

As the end of 2024 approaches, Social Security beneficiaries have a lot to look forward to. With the 3.2% COLA increase taking effect in January 2025, those receiving payments early in December will be able to enjoy their COLA-adjusted benefits ahead of time. Whether you’re a Social Security retiree or an SSI recipient, these early payments will provide important financial support as we head into the new year.

Stay informed, mark your calendars for the early payment dates, and be sure to budget accordingly as the COLA increase begins to impact your monthly benefits. The Social Security Administration’s efforts to ensure timely payments demonstrate their commitment to supporting beneficiaries during the holiday season and beyond.