For those who rely on Social Security benefits, December can be a confusing month when it comes to payment schedules. Due to how the calendar falls, some people may notice changes, with some receiving early payments or adjustments to their cost-of-living increase.
Here’s everything you need to know about the December and January Social Security payments, including how the COLA (Cost-of-Living Adjustment) will affect you.
December SSI Payments
Supplemental Security Income (SSI) recipients received an extra payment in November. Normally, SSI payments are made on the first of the month, but because December 1st fell on a Sunday this year, the payment for December was sent out early, on November 29th.
This meant some recipients got two payments in November—one for November’s benefits and one covering December.
However, there’s more! SSI recipients will still receive a payment in December, as January 1st is a federal holiday. This means their payment for January 2025 will be sent early, on December 31st. This will be a full payment, including the new cost-of-living adjustment (COLA).
If you receive both Social Security and SSI benefits, your January 2025 payment will be issued on January 3rd, following the SSA’s regular schedule.
When Will the COLA Increase Show Up?
In October, the Social Security Administration announced a 2.5% COLA increase for 2025. This is the smallest increase since 2021, and it’s tied to inflation rates. As prices have stabilized post-pandemic, the increase is smaller than in recent years.
On average, this increase will add about $50 to monthly payments. This means the typical Social Security check will increase to $1,976 per month. For most recipients, this COLA increase will start with their January payment.
However, if you’re receiving SSI, your January payment, which you will receive early on December 31, will already include the COLA adjustment.
When to Expect Your COLA Adjustment?
The Social Security Administration has set the following dates for the 2025 COLA increases:
- December 31: SSI recipients will receive their January 2025 payment early, and it will include the COLA increase.
- January 3: Those who started receiving Social Security benefits before May 1997, or those who receive both Social Security and SSI, will get their adjusted payment on this date.
- January 8: Social Security recipients born between the 1st and 10th of the month will see their COLA increase.
- January 15: Those born between the 11th and 20th will get their new COLA adjustment.
- January 22: People born between the 21st and 31st will see their payment with the updated COLA.
How to Find Your New COLA Amount?
The Social Security Administration will send out COLA notices by mail throughout December. These letters will explain how the new COLA will affect your monthly payments.
If you’ve set up a Social Security account before November 20, you can also log in starting in early December to check your COLA details online.
It’s recommended to wait until January before contacting the SSA if you have any questions about your COLA notice.
What’s Changing for Social Security in 2025?
While the COLA increase affects Social Security recipients, there are also changes in store for current workers. The income cap—the maximum earnings subject to Social Security taxes—is increasing for 2025.
The new cap will be set at $176,100, up from $168,600 this year. This means any income over $176,100 will not be taxed for Social Security.
Workers will still pay a 6.2% payroll tax on earnings up to the cap, and employers will match that tax. Some lawmakers have proposed removing the income cap altogether, arguing that it would relieve the tax burden on middle- and lower-income workers, while addressing funding issues within the Social Security system.
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Archer Bannister is a journalist with 4 years of experience covering hard-hitting stories. Currently working with Mikeandjonpodcast, Archer specializes in delivering timely and in-depth updates on a variety of topics, including crime news, politics, and national issues affecting the USA. His expertise and dedication to delivering accurate, impactful news make him a trusted voice for audiences seeking to stay informed on critical topics.
