In January 2025, Social Security recipients in the U.S. will see an increase in their benefits due to the annual Cost-of-Living Adjustment (COLA). This adjustment is crucial for over 70 million beneficiaries, helping to ensure their benefits keep pace with inflation.
Expected COLA for 2025
The COLA is calculated based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures inflation in goods and services. For 2025, the COLA is projected to be between 2.5% and 2.7%, according to recent CPI-W data. While this is a more modest increase compared to the 3.2% boost in 2024, it reflects ongoing inflation trends. The final COLA percentage will be confirmed after reviewing inflation data from the third quarter of 2024 (July to September).
January 2025 Payment Schedule
Social Security benefits follow a structured payment schedule based on the beneficiary’s birth date and program enrollment. Here’s the payment timeline for January 2025:
| Program | Payment Date | Details |
|---|---|---|
| Supplemental Security Income (SSI) | December 31, 2024 | Paid early due to the New Year’s Day holiday |
| Retirement, Survivors, Disability Insurance (RSDI) | January 3, 2025 | For beneficiaries who applied before May 1997 |
| RSDI (birthdays 1st-10th) | January 8, 2025 | Second Wednesday of January |
| RSDI (birthdays 11th-20th) | January 15, 2025 | Third Wednesday of January |
| RSDI (birthdays 21st-31st) | January 22, 2025 | Fourth Wednesday of January |
SSI recipients will receive their January 2025 payment early on December 31, 2024, because of the federal holiday on January 1.
Projected Increases by Benefit Type
Based on the estimated COLA of 2.57%, here’s how different Social Security benefits are expected to change in 2025:
| Benefit Type | Average Monthly Benefit in 2024 | Estimated Increase (2.57%) | New Average Monthly Benefit |
|---|---|---|---|
| Retirement Benefits | $1,914 | +$49 | $1,963 |
| Survivor Benefits | $1,508 | +$39 | $1,547 |
| Disability Benefits | $1,483 | +$38 | $1,521 |
| SSI Benefits (single) | $914 | +$24 | $938 |
These projections provide beneficiaries with an idea of how their monthly payments may be adjusted.
Factors Influencing Social Security Benefits
Several elements determine the amount of Social Security benefits a person receives:
- Claiming Age: Taking benefits before reaching full retirement age results in reduced payments, while delaying them can increase the monthly amount.
- Work History and Earnings: Benefits are calculated based on a lifetime of earnings, with higher average earnings leading to larger monthly payments.
- Type of Benefit: Different Social Security benefits—such as retirement, disability, and survivor benefits—have their own calculation methods and payment structures.
