The Social Security Administration (SSA) has announced a 2.5% increase in benefits for over 72.5 million Americans in 2025, thanks to the Cost-of-Living Adjustment (COLA). But who will receive this boost in their checks? Both Social Security and Supplemental Security Income (SSI) recipients will notice the increase, designed to address rising basic living costs.
What is the Cost-of-Living Adjustment (COLA)?
The COLA ensures that the purchasing power of Social Security and SSI benefits is not eroded by inflation. The adjustment is based on the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) between the third quarter of the previous year and the same period in the current year.
Cost-of-Living Adjustment in 2025: When Does it Start?
The COLA will officially take effect in January 2025. However, some recipients will receive their adjusted payments earlier due to the SSA payment schedule.
Social Security Payment Schedule for 2025
The SSA organizes payments based on the type of benefit and recipient characteristics:
- Supplemental Security Income (SSI): Payments are made on the 1st of each month.
- Group 1 Retirees: Individuals who began receiving benefits before May 1997 will receive payments on the 3rd of each month.
- Group 2 Retirees: Birthdates between the 1st and 10th of the month will receive payments on the second Wednesday.
- Group 3 Retirees: Birthdates between the 11th and 20th of the month will receive payments on the third Wednesday.
- Group 4 Retirees: Birthdates between the 21st and 31st of the month will receive payments on the fourth Wednesday.
Who Will Receive the COLA Increase First?
According to the SSA schedule, Supplemental Security Income (SSI) recipients will be the first to receive the increase. Although their payment was initially scheduled for Wednesday, January 1, 2025, it will be advanced to Tuesday, December 31, 2024, since January 1 is a federal holiday.
