New Date for COLA Increase Payment

Starting December 31, 2024, Supplemental Security Income (SSI) recipients will receive a boost in their monthly payments, thanks to the 2025 cost-of-living adjustment (COLA). This 2.5% increase is designed to help beneficiaries manage rising living costs. Here’s everything you need to know about the COLA increase, payment schedules, and eligibility criteria.

COLA Adjustment and Payment Dates

SSI payments are typically made on the first of each month. However, when January 1 falls on a federal holiday, payments are distributed earlier. In 2025, January 1 is a federal holiday, so SSI payments will be issued on December 31, 2024, ensuring that beneficiaries receive their payments without any delay.

New SSI Payment Amounts for 2025

The 2.5% COLA increase means higher monthly SSI payments. Here’s what the new amounts will look like:

• Individual Recipients: The maximum payment will increase from $943 to $967.
• Eligible Married Couples: Payments will rise from $1,415 to $1,450.
• Essential Persons (Caregivers): Payments will increase from $472 to $484.

These adjustments help ensure that SSI recipients can better keep up with inflation and other rising costs.

Eligibility Requirements for SSI

To qualify for SSI, individuals must meet certain income and resource requirements and must meet one of the following conditions:

• Be at least 65 years old
• Have a qualifying disability
• Be blind

SSI is particularly important for individuals with limited resources, offering additional income to cover basic living expenses. It’s also beneficial for those who receive low Social Security retirement or SSDI benefits.

How COLA Is Calculated

The annual COLA adjustment is determined based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures inflation.

Key points about COLA:

• The adjustment is based on the percentage increase in the CPI-W from the third quarter of the previous year to the third quarter of the current year.
• If there’s no increase in the CPI-W, there will be no COLA adjustment.
• The COLA announcement is made each October, and the new payment amounts take effect with the first payment of the following year, typically paid in January.

For 2025, the 2.5% increase will apply to the December 31, 2024, payment, which is for January 2025 expenses. Beneficiaries will typically be notified of their updated payment amounts in early December, either by mail or through their my Social Security account.

Also Read – Last Chance to Apply for New Jersey’s ANCHOR Program – Stimulus Checks up to $1,750

Preparing for the COLA Adjustment

• Check Your Payment Amount: Log in to your my Social Security account to view your updated benefit notice, which will be available online in early December.
• Plan for January: Keep in mind that the December 31 payment is for January 2025 expenses. Budgeting ahead is essential.
• Update Your Information: Make sure your contact details and bank account information are current with the Social Security Administration (SSA) to avoid delays in receiving your payments.

FAQs

What is the 2025 COLA increase for SSI? The 2025 COLA increase is 2.5%, and it will take effect on December 31, 2024, for January 2025 payments.

Why is the payment made on December 31, 2024? January 1, 2025, is a federal holiday, so payments are issued earlier to ensure timely distribution.

What is the new maximum SSI payment for individuals? The maximum SSI payment for individuals will increase to $967 in 2025.

How is COLA calculated? COLA is calculated based on the increase in the CPI-W from the third quarter of the previous year to the third quarter of the current year.

When will I receive my COLA notice? COLA notices will be mailed in early December and will also be available online via your my Social Security account.

By staying informed and planning ahead, SSI recipients can make the most of their updated benefits and ensure they stay on track with their financial needs in the coming year.

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