According to Vibes.okdiario, The annual Cost of Living Adjustment (COLA) helps Social Security recipients offset inflation by boosting their monthly payments. For 2025, a 2.5% COLA increase will apply, but not all beneficiaries will see this adjustment in November or December. Here’s what you need to know.
Who Will See the COLA Boost and When?
SSI Recipients: December 31, 2024
For those on Supplemental Security Income (SSI), the new COLA increase will reflect in payments on December 31, 2024. This early adjustment gives SSI beneficiaries a head start on the cost-of-living increase, helping offset inflation-related costs before the new year begins.
Retirees and SSDI Recipients: January 2025
Retirees and those receiving Social Security Disability Insurance (SSDI) will receive the first payments with the 2.5% COLA increase in January 2025, on the following dates:
- January 3, 2025
- January 8, 2025
- January 15, 2025
- January 22, 2025
How Much Will the COLA Increase Add to Your Benefits?
The 2.5% COLA increase means an additional $2.50 per every $100 in benefits. For example:
- A $1,000 payment will increase to $1,025.
- A $500 payment will increase to $512.50.
- A higher monthly benefit, such as $4,000, will increase to $4,100.
The larger your current benefit, the greater the dollar increase from COLA.
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Eligibility for SSI on December 31 with the COLA Increase
SSI recipients eligible on December 31, 2024, will receive the boosted payment. To qualify for SSI, beneficiaries must meet the following conditions:
- Income Requirement: Have low income and limited resources.
- Age or Disability Status:
- Be at least 65 years old
- Have a qualifying disability
- Be blind
Additional residency and other requirements may apply, but most individuals who meet the above criteria are likely to meet the broader eligibility conditions.
Social Security Strategies
If you haven’t filed for Social Security yet, consider delaying your claim beyond Full Retirement Age (FRA) to increase your monthly benefit amount. Delayed Retirement Credits accumulate for those who wait, increasing the benefit received upon filing. When combined with COLA adjustments, this strategy can lead to a more substantial monthly income.
The 2.5% COLA for 2025 offers much-needed relief for Social Security beneficiaries, helping them keep pace with rising living costs. By understanding these updates, recipients can better plan for the year ahead and make informed decisions about their Social Security benefits.
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