As we approach the end of 2024, Social Security beneficiaries are eagerly anticipating their December payments. This year’s schedule brings some unique quirks and important dates that recipients should be aware of, especially as we look ahead to the changes coming in 2025. Let’s dive into the details of what Social Security recipients can expect in the coming weeks and months.
December 2024 Payment Schedule
The Social Security Administration (SSA) has set specific dates for December payments, which vary based on the type of benefit and the recipient’s birth date. Here’s a breakdown of the key dates:
- November 29, 2024: Supplemental Security Income (SSI) recipients received their December payment early due to December 1 falling on a Sunday.
- December 3, 2024: Beneficiaries who started receiving Social Security before May 1997 got their payments.
- December 11, 2024: This is a key date for many recipients. Those born between the 1st and 10th of any month will receive their payments on this day.
- December 18, 2024: Beneficiaries born between the 11th and 20th of the month will get their checks.
- December 24, 2024: Those born between the 21st and 31st will receive their benefits just before Christmas.
It’s crucial to note that SSI recipients will receive an additional payment on December 31, 2024. This payment is actually an advance for January 2025, issued early because January 1 is a federal holiday.
Current COLA and Benefit Amounts
The December 2024 payments will still reflect the 3.2% Cost-of-Living Adjustment (COLA) that was implemented at the beginning of the year. For the average beneficiary, this means a monthly payment of about $1,907. This amount will remain consistent for the December payments.
Looking Ahead: Changes Coming in 2025
As we move into the new year, Social Security recipients can expect some changes:
- New COLA for 2025: The SSA has announced a 2.5% COLA for 2025. While this is lower than recent years, it still represents an increase in benefits.
- Increased Average Benefit: With the new COLA, the average monthly benefit is expected to rise to approximately $1,970 in 2025.
- Earlier COLA Implementation for Some: Most beneficiaries will see the new COLA reflected in their January 2025 payments. However, SSI recipients will see the increase in their December 31, 2024 payment, which is technically their January 2025 benefit paid early.
- Changes to Income Cap: For current workers, the income cap for Social Security taxes will increase to $176,100 in 2025, up from $168,600 in 2024.
Payment Schedule for Early 2025
The payment schedule for the start of 2025 is as follows:
- December 31, 2024: SSI recipients get their January 2025 payment (with new COLA).
- January 3, 2025: Payment for those who receive both Social Security and SSI, or who started receiving benefits before May 1997.
- January 8, 2025: For those born between the 1st and 10th of the month.
- January 15, 2025: For those born between the 11th and 20th of the month.
- January 22, 2025: For those born between the 21st and 31st of the month.
Impact of the New COLA
While the 2.5% COLA for 2025 is a welcome increase, it’s lower than the adjustments seen in recent years. This reflects the cooling of inflation rates from their pandemic highs. On average, beneficiaries can expect an increase of about $50 per month in their Social Security checks.
However, some senior advocacy groups argue that this increase may not be sufficient to cover the rising costs of living that many older Americans face. The effectiveness of the COLA in maintaining seniors’ purchasing power remains a topic of ongoing debate.
What Recipients Should Know
- Check Your Mail: The SSA is mailing COLA notices throughout December 2024. These letters will outline how your benefits will change with the cost-of-living increase.
- Online Access: Beneficiaries can log into their personal my Social Security account to view their COLA notice starting in early December, provided their account was created before November 20, 2024.
- Patience is Key: The SSA requests that people wait until January to contact them about their notices, allowing time for all information to be properly updated in their systems.
- Be Aware of Calendar Quirks: As we’ve seen with the December payments, the specific day of the week can affect when payments are received, especially around holidays.
- Plan for the New Year: With the new COLA taking effect in January (or December 31 for SSI recipients), it’s a good time to review and adjust your budget accordingly.
Conclusion
As we wrap up 2024 and look toward 2025, Social Security beneficiaries can expect some changes to their payments. While the December 11, 2024 payment is a key date for many recipients, it’s important to be aware of the full schedule and upcoming adjustments. The new year brings a modest increase in benefits, reflecting the current economic conditions and inflation rates.
Remember, staying informed about these changes and planning accordingly can help ensure financial stability throughout the year. If you have any questions about your specific benefits or payment dates, don’t hesitate to reach out to the Social Security Administration for clarification.