Pre – 1997 Retirees Alert – Final 2024 Social Security Payments and What to Expect with the 2025 COLA Increase

For retirees who began collecting Social Security before May 1997, the Social Security Administration (SSA) has some important updates regarding upcoming payment dates and the 2025 Cost-of-Living Adjustment (COLA). These adjustments aim to accommodate holiday scheduling, ensure timely payments, and provide an increase to monthly benefits starting next year.

Let’s break down the specific payment details for November and December and explain how the 2025 COLA increase will impact retirees.

Payments

The SSA has adjusted the payment schedule for those who retired and began receiving Social Security benefits before May 1997. Traditionally, these retirees would receive their payment on the 3rd of each month.

However, due to November 3, 2024, falling on a Sunday, the SSA will distribute these payments earlier, on November 1. By advancing the date, SSA ensures timely access to funds, as banks are unable to process payments on weekends.

Additionally, those who receive Supplemental Security Income (SSI) will see their payments aligned with this updated schedule. Retirees with SSI benefits will receive their November payment on November 1, with no further Social Security payments for that month.

Payment Schedule

For SSI beneficiaries, there are specific payment dates to note:

• November Payment: November 1, 2024
• December Payment: November 29, 2024 (for the December disbursement)

These payments occur before the usual first-of-the-month schedule, aligning with weekend or holiday adjustments. This change ensures that SSI recipients receive their benefits without delay.

December Payments

The December payment for pre-1997 retirees remains on schedule and will be issued on December 3, 2024. This payment will be the last monthly check at the current rate, as the SSA will implement the 2025 COLA adjustment starting with the January 2025 payment.

No additional scheduling adjustments are anticipated for December, allowing retirees to expect their funds on the typical payment date.

COLA Increase

The SSA has announced a 2.5% COLA increase for 2025, designed to keep Social Security payments in line with inflation and rising living expenses. Here’s what this increase means for retirees:

• Average Monthly Boost: On average, retirees will see an additional $50 per month starting in January 2025. This adjustment will be reflected in the January 3, 2025, payment for pre-1997 retirees.
• Annual Increase: The $50 monthly raise equates to approximately $600 in extra income per year, providing a moderate but essential boost for those relying on Social Security.

The COLA increase can be especially impactful for retirees with limited income who depend heavily on Social Security benefits as a primary income source. While modest, the additional funds contribute to improved financial stability, helping retirees manage everyday expenses.

COLA

For retirees on a fixed income, inflation erodes purchasing power, making it harder to cover basic necessities like housing, groceries, and medical expenses. The annual COLA adjustment is designed to mitigate this impact by keeping benefits aligned with changes in the Consumer Price Index (CPI). The 2.5% increase for 2025, though moderate, is a necessary adjustment to help retirees keep up with rising costs.

With rising healthcare costs and other inflationary pressures, the COLA increase represents a vital financial cushion, especially for retirees who are economically vulnerable. This is even more crucial for low-income retirees who may also qualify for SSI, as they depend on Social Security and SSI benefits to meet their needs.

Key Takeaways

Here’s a summary of essential points for pre-1997 Social Security recipients regarding payment schedules and the 2025 COLA:

• November Payment: Delivered on November 1, 2024, instead of November 3, due to weekend scheduling.
• December Payment: Scheduled for December 3, 2024, without changes.
• 2025 COLA Increase: A 2.5% increase takes effect in January 2025, providing an average of $50 extra per month.
• Annual Boost: Retirees can expect an additional $600 per year as a result of the COLA adjustment.

These adjustments and the 2025 COLA increase underscore the SSA’s commitment to maintaining financial stability for retirees, especially those on limited incomes who depend on timely and sufficient Social Security payments.

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