Many Social Security recipients usually receive a single check each month, but due to a quirk in the calendar, some older Americans did not receive a check at the beginning of December. Additionally, some beneficiaries may experience their annual cost-of-living adjustment taking effect this month, earlier than the usual start date in January. While the Social Security Administration plans its payment schedule well ahead of time, the payment dates for this month may catch some seniors off guard, either positively or negatively.
In a specific case, individuals who receive Supplemental Security Income (SSI) from Social Security received an extra payment in November due to the unique calendar positioning in December. Normally, SSI recipients, including disabled adults and low-income seniors, receive their checks on the first day of the month. However, because December 1 fell on a Sunday this year, these beneficiaries received their December payment on November 29.
Despite this early payment, SSI recipients will still receive their regular December payment, as January 1 falls on a federal holiday. This means the January 2025 SSI payment will be issued on December 31. Nevertheless, those who receive both Social Security and SSI will receive their January 2025 payment on January 3.
The 2025 cost-of-living adjustment was set at 2.5% in October by the Social Security Administration, marking the smallest increase since 2021 based on recent inflation rates. This adjustment will, on average, raise monthly benefits by around $50, with the typical payment in 2025 reaching $1,976 per month. Most Social Security recipients will see the new COLA reflected in their January payment, except for those receiving their January SSI checks on December 31, who will notice the increase in that payment.
Recipients can expect their new 2025 COLA payments on the following dates:
– Dec. 31: SSI beneficiaries will receive their new cost-of-living adjustment with the payment representing their January 2025 benefit.
– Jan. 3: Those who claimed Social Security before May 1997 or receive both Social Security and SSI will see their new 2025 COLA reflected in their checks on this day.
– Jan. 8: Recipients born between the 1st and 10th of the month will receive their new COLA payment.
– Jan. 15: Recipients born between the 11th and 20th of the month will receive their new COLA payment.
– Jan. 22: Those born between the 21st and 31st of the month will receive their cost-of-living increase.
To check your new COLA, the Social Security Administration will be sending out COLA notices in December detailing how your benefits will change with the cost-of-living adjustment.
Social Security recipients who created their my Social Security accounts before November 20 can access their COLA notice starting in early December. The Social Security Administration advises individuals to refrain from contacting them regarding their notices until January.
A notable change affecting current workers is set to take place in 2025 within the Social Security program. The income cap, which is the threshold above which earnings are not subject to taxation for Social Security, will increase to $176,100 next year, up from the current year’s $168,600. In essence, any income exceeding $176,100 will not be subject to the payroll tax for Social Security, which stands at 6.2% for workers and an additional 6.2% for employers.
Some legislators have pushed for the elimination of the income cap, arguing that it places a disproportionate tax burden on middle- and lower-income workers compared to the 6% of Americans who earn above the threshold. They contend that removing the threshold would also aid in alleviating the program’s financial strain. However, these initiatives have not gained significant support in Congress thus far.
As for the timing of Social Security recipients’ initial payment in 2025, the schedule is determined based on individuals’ birthdays. The payment dates for the first month of 2025 are as follows:
– Birthdays between January 1-10 will receive Social Security benefits on January 8
– Birthdays between January 11-20 will receive Social Security benefits on January 15
– Birthdays between January 21-31 will receive Social Security benefits on January 23
For the complete payment schedule throughout 2025, individuals can refer to the details provided.
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