In just a few weeks, we will find out the Social Security cost-of-living adjustment (COLA) for 2025. Current estimates suggest it will be about 2.5%, which is lower than this year’s 3.2% adjustment. However, this figure could change slightly.

While much focus is on the announcement date, there are two other essential dates related to the 2025 COLA that you should keep in mind.

1. October 10: Announcement of the 2025 COLA

The Social Security Administration will reveal the 2025 COLA on October 10. This announcement will include the crucial September 2024 Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). This data will be averaged with the figures from July and August to determine the COLA based on comparisons with the average from the third quarter of 2023.

The COLA isn’t directly added to your checks; it adjusts your primary insurance amount (PIA), which is your benefit amount if claimed at your full retirement age (FRA). If you claim your benefits at another time, the COLA will adjust your benefit up or down for 2025.

You can estimate your 2025 benefit by adding the COLA percentage to your current payments. For instance, with a COLA of 2.5% and a current monthly benefit of $2,000, your payment in 2025 would approximate $2,050.

2. December 2024: Individual COLA notifications for beneficiaries

In early December, personalized notices detailing the specific amount beneficiaries will receive in 2025 will be distributed. Those who set up a my Social Security account by mid-November can access their COLA notice through their Message Center. They can also opt for email or text alerts to be notified when this information is available.

The Social Security Administration will also be mailing out COLA notices throughout December, but due to the volume of accounts, beneficiaries are advised not to inquire about any missing notices until January 2025.

3. January 8/15/22, 2025: First checks reflecting 2025 COLA

The COLA will technically be applied to your December 2024 payment, but since Social Security disburses checks for the prior month, the first payment with the COLA will arrive in January 2025.

Your payment date in January will depend on your birthdate, as outlined below:

• Born between the 1st and 10th: January 8, 2025
• Born between the 11th and 20th: January 15, 2025
• Born between the 21st and 31st: January 22, 2025

Following this, payments will continue on either the second, third, or fourth Wednesday of each month based on your birthdate.

If you’re receiving Supplemental Security Income (SSI), your benefit will increase even sooner. SSI payments, which are typically made on the first of the month, will be issued on December 31, 2024, due to January 1, 2025, being a federal holiday.

Once you know your future Social Security (and possibly SSI) benefits for 2025, you can effectively plan your budget for the upcoming year. If you have questions about the COLA and how it impacts your benefits, consider reaching out to the Social Security Administration, but it may be best to wait until your COLA notice arrives in December, as it might provide clear answers.

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