The Social Security Administration (SSA) confirmed in the last few hours that retirement benefit payments for the month of January 2025 will begin to be distributed this week. There are three payments in total, but not all of them will go together, but rather they will be distributed on three different dates.
Social Security payments will be made on the second, third, and fourth Wednesdays of the month, in line with the usual schedule. Beneficiaries are grouped according to their date of birth. Let’s look together at what the distribution dates will be like.
A Social Security payment is sent in a matter of hours
The first payment will be sent on January 8, then there will be a second payment for another group on January 15, and a final one on January 22, and they will be grouped based on their dates of birth.
Those born between the 1st and 10th of each month will receive their payments on Wednesday, January 8, while those born between the 11th and 20th will receive their payments on the third Wednesday, which is January 15. Finally, beneficiaries born between The 21st and 31st will collect their checks on the fourth Wednesday, which is January 22nd.
The amounts to be distributed among the millions of beneficiaries are variable, and it is different in each case. The maximum amount of Social Security benefits in 2025 varies depending on each person’s retirement age.
There are changes to the Social Security system that you should know about
For those who reach full retirement age, the maximum Social Security benefit is $4,018 per month. This amount is determined based on multiple factors, including earnings during the employment period and the number of years worked. Full retirement age, which varies by year of birth, represents the time at which an individual can begin receiving their Social Security benefit without this amount being reduced due to early receipt.
Those who decide to retire at age 62, which is the minimum age at which Social Security benefits can be claimed, will only be able to receive a maximum amount of $2,831 per month. This amount is significantly less than the benefit they would receive by waiting until FRA.
The reduction in the amount is due to what is known as an “anticipation adjustment.” Generally speaking, beneficiaries who choose to begin receiving their payments before reaching their full retirement age will have their benefits reduced by a percentage that depends on how many months before that date they begin receiving them.
For example, deciding to retire at age 62 can result in a reduction of approximately 30% compared to the amount they would receive upon reaching full age.
Is it a good idea to wait until age 70 to retire?
On the other hand, those who choose to wait until age 70 to start receiving their benefits can maximize their monthly income to a maximum of $5,108. This amount reflects what is known as “delayed retirement credits,” which allows beneficiaries to increase their monthly benefit for each additional month they choose to wait beyond their full retirement age.
These credits accumulate and increase the benefit amount once the individual begins receiving it, resulting in significantly higher income for those who can afford to wait.
Additionally, all Social Security beneficiaries will receive a 2.5% cost-of-living adjustment (COLA) on their benefit checks, effective January. Other major changes include an increase in the wage limit for Social Security taxes, which will be $176,100, as well as an increase in the earnings limit for workers under full retirement age, which will rise to $23,400. To obtain a credit in 2025, a wage or self-employment income of $1,810 will be required.
