The year 2025 will bring important news for Social Security beneficiaries in the United States, with an increase in monthly payments and truly notable changes in distribution schedules, as already established by the Social Security Administration (SSA) itself.
These adjustments, designed to respond to the rising cost of living, will benefit millions of retirees, survivors, people with disabilities, and beneficiaries of the Supplemental Security Income (SSI) program.
How Social Security payments will be distributed in 2025
The Social Security Administration (SSA) will organize the distribution of monthly payments in five specific rounds throughout each month. Beneficiaries will receive their funds based on the following criteria:
- Days 1 and 3 of the month: Payments for SSI recipients and those receiving benefits for retirement claimed before May 1997, disability, or survivors. Also included in this group are those expatriate retirees who have settled in another country.
- Second Wednesday: benefit payments for retirees and disabled workers (SSDI) who have birthdays between the 1st and 10th of any month. The assigned date is January 8.
- Third Wednesday: benefit payments for retirees and disabled workers (SSDI) who have birthdays between the 11th and 20th of any month. The assigned date is January 15.
- Fourth Wednesday: benefit payments for retirees and disabled workers (SSDI) who have birthdays between the 21st and 31st of any month. The assigned date is January 22.
Moving forward, we must also mention that December 31 brings a particularity. The Supplemental Security Income (SSI) payment defined for the month of February is brought forward to this date, because the 1st is a Saturday and the SSA does not send payments on holidays or weekends.
All payments increase from January 2025
The major change ushering in the new year will be a 2.5% cost of living adjustment (COLA). This increase, confirmed by the Bureau of Labor Statistics, is intended to mitigate the impact of inflation on beneficiaries’ essential expenses, such as food, health care and housing.
For example, the average monthly benefit for a retiree will increase from $1,900 in 2024 to $1,947 in 2025. Other beneficiaries will also see proportional increases in their payments based on their age and situation:
- Beneficiaries at age 62: from $2,710 to $2,777.
- Beneficiaries at age 67: from $3,822 to $3,917.
- Beneficiaries at age 70: from $4,873 to $4,994.
As a brief reminder, the COLA is calculated based on the consumer price index known as CPI-W, prepared by averaging the months of the third quarter of the year ending and comparing it with the same period of the previous year. If the index shows an increase, the percentage of that increase is used to adjust Social Security, SSDI, and SSI benefits for the following year, ensuring that payments reflect changes in the cost of living due to inflation.