As the year draws to a close, pre-1997 Social Security retirees are anticipating their remaining payments for 2024, especially with the upcoming 2.5 percent Cost-of-Living Adjustment (COLA) set for 2025. Understanding the payment schedule and the impact of the COLA is crucial for effective financial planning.
Social Security Payment Schedule for Pre-1997 Retirees
Retirees who began receiving Social Security benefits before May 1997 have a consistent payment schedule. Their benefits are disbursed on the third day of each month. If the third falls on a weekend or federal holiday, payments are made on the preceding business day. For the remainder of 2024, the payment dates are as follows:
| Month | Payment Date | Day of the Week | Notes |
|---|---|---|---|
| November | November 1 | Friday | Adjusted due to November 3 (Sunday) |
| December | December 3 | Tuesday | Regular payment date |
| January 2025 | January 3 | Friday | Includes 2025 COLA increase |
Understanding the 2025 COLA Increase
The Social Security Administration has announced a 2.5 percent COLA for 2025, aimed at countering inflation and maintaining beneficiaries’ purchasing power. This adjustment will be reflected in the January 3, 2025, payment for pre-1997 retirees.
For instance, if a retiree currently receives 1,500 dollars monthly, the new benefit amount will be approximately 1,537.50 dollars.
Impact on Supplemental Security Income (SSI) Recipients
For those receiving both Social Security and SSI benefits, it is important to note that SSI payments are typically disbursed on the first of each month. However, when the first falls on a weekend or holiday, payments are made on the preceding business day.
In December 2024, SSI recipients will receive their payment on December 31, 2024, which will include the 2.5 percent COLA increase.
Preparing for the COLA Adjustment
Beneficiaries should anticipate receiving official notification from the Social Security Administration detailing the exact increase in their benefits. This information is typically available in December. To access this information promptly, retirees are encouraged to set up a personal my Social Security account online.
Conclusion
Understanding the payment schedule and the forthcoming COLA increase is essential for pre-1997 Social Security retirees. By staying informed, beneficiaries can better manage their finances and plan for the year ahead.
FAQs
1. When will the 2025 COLA increase be reflected in my payment?
The 2.5 percent COLA increase will be included in the payment disbursed on January 3, 2025.
2. How can I find out the exact amount of my new benefit?
The Social Security Administration will send notifications in December detailing the new benefit amounts. You can also access this information through your personal my Social Security account online.
3. What if I receive both Social Security and SSI benefits?
If you receive both benefits, your Social Security payment will be on January 3, 2025, and your SSI payment, reflecting the COLA increase, will be on December 31, 2024.
4. Do I need to apply for the COLA increase?
No, the COLA increase is automatic and will be applied to your benefits without any action required on your part.
5. Will the payment dates change in 2025?
For pre-1997 retirees, the payment schedule remains the same, with benefits disbursed on the third of each month. Any changes due to weekends or holidays will be communicated by the Social Security Administration.