The Social Security COLA is an increase in checks sent month to month. The calculation of the COLA is carried out based on the Consumer Price Index for Salaried Workers in Urban Areas and Administrative Workers (CPI-W), so as not to affect the purchasing power of the beneficiaries.
Everyone is counting down the days until the COLA announcement, but this is only the beginning. We are a few days away from knowing what the Social Security cost of living adjustment (COLA) will be for 2025. Current projections place it at around 2.5%, less than the 3.2% increase in beneficiaries this year. But this could still have some change. Much of the attention is focused on the date the announcement itself will be made, but there are also two key dates to take into account related to the cost of living adjustment for next year 2025.
Dates of importance for COLA Increase
The first date is October 10.
The Social Security Administration will officially carry out the cost of living adjustment for next year 2025, on October 10. At that moment, you will have the latest information you need to make your calculation. The figure of the consumer price index for urban wage earners and clerical employees (CPI-W) for the month of September 2024. The government will calculate the average of this figure with the data for the month of July and August and will compare them with the average data from the third quarter of last 2023. The difference between them will be the adjustment for cost of living.
Technically, the COLA is not immediately applied to your checks. The government applies it to your primary insurance amount (PIA). That’s the benefit you would qualify for if you claim Social Security at your full retirement age (FRA). Subsequently, if you applied for Social Security at any other time, your benefit is adjusted up or down to calculate the new payment amount for 2025.
The second date is December 2, 2024
Beneficiaries receive personalized COLA notices. At the beginning of December, the Social Security Administration will be sending personalized notices to all Social Security beneficiaries, indicating the exact amount of how much they will receive in 2025. If you have created an account in my Social Security Before mid-November, you will be able to review your COLA notice through the Message Center. You can also sign up to have an alert or text message sent to your email to let you know when the notice is available.
The Social Security Administration will also mail notices about the cost of living adjustment in December. However, sending these notices to millions of beneficiaries takes time, so the Social Security Administration asks that you not contact it regarding missing cost-of-living adjustment notices until January 2025.
The third date is basically three: January 15, 08, 22, 2025.
These are the scheduled dates for sending the first checks with COLA 2025 already included. Technically, the Social Security Administration will apply the 2025 COLA to your payment for the month of December 2024. But if Social Security checks are received in the month after the due month, you will not receive your first payment with the COLA until January 2025.
The exact date will depend on the day of the month in which you were born, as follows
- Born between the 1st and 10th of any month: January 8, 2025.
- Born between the 11th and 20th of any month: January 15, 2025.
- Born between the 21st and 31st of any month: January 22, 2025.
Beneficiaries will continue to receive payments on the second, third or fourth Wednesday of each month, depending on their date of birth. Those who receive Supplemental Security Income (SSI) will see an increase in their checks even sooner. These benefits are normally paid on the first day of the month, but since January 1, 2025 is a federal holiday, these checks will be sent on December 31 of this year, 2024.
Once you know how much you will receive from Social Security and possibly SSI in 2025, you can start planning your budget for next year. If you have any questions or concerns about how the COLA will affect your checks, you can contact the Social Security Administration. But consider waiting until you have received your COLA notice in December, as this may answer many questions.