According to Vibes.okdiario, The Social Security Administration (SSA) has officially announced the implementation of the 2025 Cost-of-Living Adjustment (COLA) increase. This article provides essential details about the new payment dates for retirement benefits in the United States, alongside eligibility information for new applicants and individuals in their 50s or 60s. Stay informed about important updates regarding these payments and your eligibility status.
Details of the 2025 COLA Increase
The SSA has confirmed that the COLA increase for 2025 will be approximately 2.5%. This increase is notably lower than previous years, being about 0.7% less than in 2024 and 6.2% lower than in 2023. Over the last decade, COLAs have averaged around 2.6%, making this adjustment just slightly lower at 2.5%. Nevertheless, it remains a significant increase rather than a reduction.
First Recipients of the 2025 COLA Increase
The first group to receive the 2.5% COLA increase will be Supplemental Security Income (SSI) recipients. These federal benefit payments will be issued with the new increase on December 31, 2024, making SSI recipients the earliest to benefit from this adjustment.
Following the SSI payment, the first Social Security payments reflecting the COLA increase will be made on January 3, 2025. This payment will be distributed to two specific groups: some Disability Insurance (SSDI) beneficiaries and select retirees. To qualify for the January 3 payment, individuals must meet one of the following criteria:
- Have started receiving Social Security payments before May 1997.
- Be an eligible recipient of SSI while also receiving retirement or SSDI benefits.
Payment Schedule for Retirees and SSDI Recipients
For those who do not qualify for the January 3 payment, the next scheduled payments will occur on the second, third, and fourth Wednesdays of January. Here’s the breakdown of the payment dates based on birth dates:
- January 8, 2025: Payments for individuals born from the 1st to the 10th.
- January 15, 2025: Payments for individuals born from the 11th to the 20th.
- January 22, 2025: Payments for individuals born from the 21st to the 31st.
Eligibility Requirements for Social Security Retirement Benefits in 2025
To qualify for Social Security retirement benefits, American workers must meet several criteria, with two essential requirements:
- Work Credits: Workers must have earned enough work credits to file for retirement benefits. As of 2024, the minimum number of work credits required is 40. However, this number may be lower for those applying for Disability Insurance rather than retirement benefits, particularly for younger workers.
- Age Requirement: Individuals cannot apply for retirement benefits until they reach the age of 62, which is the earliest age to begin receiving payments from the SSA.
Changes in Work Credit Earnings Due to the COLA
The 2025 COLA increase will also impact the earnings required to obtain work credits. According to Social Security’s COLA Fact Sheet, the earnings needed for a quarter of coverage will rise from $1,730 in 2024 to $1,810 in 2025. As a result, workers will need to earn more in 2025 to receive the same number of work credits. Once individuals accumulate 40 credits and reach age 62, they can apply for Social Security retirement benefits, which is a necessary step to receive payments in retirement.
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