dates and requirements to get retirement benefits

According to Vibes.okdiario, The Social Security Administration (SSA) has announced significant updates regarding the Cost-of-Living Adjustment (COLA) for 2025, including new payment dates for beneficiaries. This information is vital for current recipients, new applicants, and workers in their 50s and 60s seeking to understand their eligibility for Social Security benefits.

2025 COLA Increase Details

The SSA has confirmed that the 2025 COLA increase will be approximately 2.5%. While this marks a decrease from the 2024 adjustment of 3.2% and the 2023 adjustment of 8.7%, it aligns closely with the average COLA of 2.6% seen over the last decade. Although the increase is modest, it remains beneficial for recipients.

Who Receives the First Payments with the 2025 COLA Increase?

The first group to receive the COLA increase will be recipients of Supplemental Security Income (SSI), a federal benefit program. SSI recipients will see this 2.5% boost reflected in their payments on December 31, 2024, making them the first to benefit from the adjustment.

Following the SSI payments, the first Social Security payments reflecting the 2025 COLA will be issued on January 3, 2025. This payment will be available to two specific groups of beneficiaries: some Disability Insurance (SSDI) recipients and certain retirees. To qualify for the January 3 payment, individuals must meet one of the following criteria:

• Have started receiving Social Security payments before May 1997.
• Be an eligible SSI recipient while also receiving retirement or SSDI benefits.

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Payment Schedule for Retirees and SSDI Recipients

For those who do not qualify for the January 3 payment, the next round of payments will occur on the second, third, and fourth Wednesdays of January 2025:

• January 8: Payments for individuals born between the 1st and 10th of the month.
• January 15: Payments for individuals born between the 11th and 20th.
• January 22: Payments for individuals born between the 21st and 31st.

Eligibility Requirements for Social Security Retirement Benefits in 2025

To qualify for Social Security retirement benefits in 2025, American workers must meet several requirements, two of which are essential:

1. Work Credits: Workers must have earned a minimum of 40 work credits to file for retirement benefits. This number may be lower for those applying for Disability Insurance.
2. Age Requirement: Individuals cannot apply for retirement benefits until they are at least 62 years old, the earliest age at which they can begin receiving benefits.

The 2025 COLA increase will also affect the earnings required to obtain work credits. In 2024, one quarter of coverage (work credit) is based on earnings of $1,730, which will increase to $1,810 in 2025. Consequently, workers will need to earn more to accumulate the necessary credits.

Once workers have acquired the required 40 credits and reach the age of 62, they can file for Social Security benefits, which are essential for retirement income.

Conclusion

Staying informed about the 2025 COLA increase and the associated payment schedule is crucial for Social Security beneficiaries. Understanding the eligibility requirements will help current and future recipients navigate their financial planning effectively. For those eligible, the upcoming adjustments will provide essential support during retirement.