In December 2024, Social Security beneficiaries in the United States will receive their last payments before the Cost of Living Adjustment (COLA) increase takes effect, increasing their monthly checks.
This adjustment, determined annually in October by the Social Security Administration (SSA), is based on indicators of inflation and economic conditions, and for fiscal year 2025, a 2.5% increase was announced on October 10, 2024, as indicated by the consumer price index, known as CPI-W.
Upcoming adjustments and Social Security payment schedule
Those who receive retirement benefits already know that the payment schedule is organized based on their dates of birth, and wire transfers are sent on the second, third, and fourth Wednesday of each month.
For example, those who had a birthday between the 1st and the 10th of any month received their payments on Wednesday 4. Then, those who had a birthday between the 11th and the 20th received their check on December 18, while those whose birthday birthdays fall between the 21st and the 31st will get their final distribution on December 24 (advanced from the regular date, that should be December 25, as it is a holiday).
The maximum retirement benefit for those who decided to retire at age 70 in 2024 is $4,873. However, the amount may vary depending on when each individual chose to start their benefits. For example, those who started at age 67 receive less, $3,822 monthly.
Starting next month, you’ll receive more money from Social Security
Starting December 31, 2024, Social Security benefits will be met by the 2025 cost of living adjustment (COLA). According to the SSA, based on the CPI-W, this will be 2.5%, much lower than that of 2024, which was 3.2%, and that of 2023, which was an impressive 8.7%.
In reality, the adjustment should be reflected in payments from January 1, 2025, but that day is a holiday. So, the Supplemental Security Income (SSI) payment, which should be distributed that day, is moved forward to December 31. Recipients will receive their first payment with the COLA adjustment of $967 on December 31, instead of the standard payment of $943.
Then, the next date for retirees receiving Social Security is January 8, 2025. From then on, the maximum amount will increase to $5,108 for retirees age 70 and $4,018 for those who turn 67, the full retirement age.
If Social Security benefits do not arrive on the expected date, it is vital to take prompt action to resolve the issue. First, check the payment calendar on the SSA official website to confirm the scheduled date. If the payment is still pending, contact the SSA directly at 1-800-772-1213 to report the situation.
Be sure to document all communications and the information provided for effective follow-up. It may also be helpful to review your bank account to ensure there were no errors with direct deposits, and get in touch with your bank to determine that there was not an error there.