The Social Security cost of living (COLA) is a mechanism used by the Social Security Administration (SSA) that seeks to protect the purchasing power of retirees and beneficiaries against inflation. It is applied every year following the price index called CPI-W, which measures when goods and services increased at the federal level (averaged) and tells the SSA and other federal allocations (such as SNAP benefits) how much they must increase to keep up with the increase. inflation.
In 2025, this adjustment will be 2.5%, providing much-needed relief to those who rely on these payments to cover their daily needs. In order to keep beneficiaries informed, it is essential to know the key dates related to this adjustment, as well as how and when it will be reflected in their bank accounts. As the new year approaches, it is essential to stay on top of these details to ensure a smooth financial transition.
The COLA and other important changes that you will see in 2025 in your Social Security payments
To start, you should be receiving a personalized letter from the SSA in your mailbox explaining the entire mechanism of the COLA adjustment. This notice will indicate the exact amount each person will receive, ensuring that everyone is informed about their new benefit check. Additionally, for those who have an account in the “My Social Security” portal, a short message will be sent to your inbox.
But before we head into 2025, there is still one last month and there are three pending payment dates, which are as follows:
- Wednesday, December 11: Beneficiaries born between the 1st and 10th of the month.
- Wednesday, December 18: Beneficiaries born between the 11th and 20th of the month.
- Marts December 24: Beneficiaries born between the 21st and 31st of the month (it is moved forward one day because the 25th is a national holiday).
Social Security dates for January 2025
Now, entering January, beneficiaries of Social Security retirements will have payment dates already defined by the SSA calendar. These dates are the following:
- Friday January 3, 2025: Payment sending date for those who receive Social Security since before May 1997, or who receive both Social Security and SSI (the latter is sent on the previous December 31).
- Wednesday, January 8, 2025: Beneficiaries born between the 1st and 10th of the month.
- Wednesday, January 15, 2025: Beneficiaries born between the 11th and 20th of the month.
- Wednesday, January 22, 2025: Beneficiaries born between the 21st and 31st of the month.
When will the COLA 2026 adjustment be announced
The cost of living (COLA) for the year 2026 will generally be announced in October 2025. This announcement will be based, as every year, on inflation marked by the CPI-W. The last year of Joe Biden’s government was marked by declining inflation and slowing price increases. It remains to be seen what President-elect Donald Trump’s economic policies will be and what the impacts will be on American household economies.
The last ten years of COLA increases were fluctuating because there was everything from global war crises to a pandemic. The highest in the last decade was in 2023, with a notable increase of 8.7%. This adjustment was driven by a significant increase in inflation, which reflected rising prices in goods and services, especially food and energy. On the other hand, the lowest COLA in those same ten years was recorded in 2016, when there was no adjustment, as inflation remained low and did not reach the threshold necessary to justify an increase in benefits.