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Social Security Boost: 2.5% Increase Coming in January 2025—What You Need to Know

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Starting January 2025, Social Security recipients will see a 2.5% increase in their monthly benefits due to the Cost-of-Living Adjustment (COLA) announced by the Social Security Administration (SSA). This adjustment aims to help retirees and others on Social Security maintain their purchasing power as living costs continue to fluctuate.

What Does the 2.5% Increase Mean for You?

For the average Social Security recipient, the 2.5% boost will translate to an additional $50 per month. This brings the average monthly benefit up to approximately $1,976 from $1,927. While not as significant as previous adjustments, the increase still provides additional financial support for retirees and those on disability benefits.

Why Is the COLA Lower This Year?

The 2.5% COLA for 2025 marks a drop from the 3.2% adjustment in 2024 and the record-breaking 8.7% increase in 2023. The smaller adjustment reflects the lower inflation rates the U.S. economy has experienced over the past year.

When Will You Receive the New Payments?

The updated payments will begin in January 2025 and follow the usual Social Security payment schedule:

If your birthday falls between the 1st and 10th of the month, you will receive your payment on the second Wednesday.

Birthdays between the 11th and 20th receive payments on the third Wednesday.

Birthdays between the 21st and 31st receive payments on the fourth Wednesday.

For January 2025, payments will be made on January 8, 15, and 22, depending on your birth date.

Changes for SSI Recipients

Supplemental Security Income (SSI) recipients will also benefit from the 2.5% increase. For individuals, the maximum monthly SSI payment will rise from $943 in 2024 to $967 in 2025.

Stay Informed

The SSA will send official notifications about the updated benefit amounts to beneficiaries via mail in early December. If you have questions about your benefits or need personalized information, visit the official SSA website or contact your local office directly.

Although the 2.5% COLA is modest compared to previous years, it offers essential support for millions of Americans who rely on Social Security. Beneficiaries are encouraged to plan their budgets accordingly to make the most of the increase.

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