Social Security beneficiaries can expect changes in their payments in 2025. The Social Security Administration (SSA) has released the official payment schedule for next year. The SSA makes five rounds of payments each month.
SSI claimants receive their benefits on the first day of the month. Those in the Retirement, Survivors, and Disability Insurance (RSDI) program who started receiving benefits before May 1997 get paid on the third day of the month. RSDI beneficiaries who began receiving benefits after May 1997 are paid based on their birth date.
Those born between the 1st and the 10th receive payments on the 2nd Wednesday of the month. Those born between the 11th and the 20th get paid on the 3rd Wednesday. And those born between the 21st and the 31st receive their benefits on the 4th Wednesday.
If the payment date falls on a weekend or federal holiday, the payment is made on the preceding business day. The amount of Social Security payments will also change in 2025. The SSA increases payments each year based on the cost of living adjustment (COLA).
The official COLA for 2025 hasn’t been announced yet, but the Senior Citizens League predicts it could be around 2.63%. If confirmed, beneficiaries from all programs will see an increase in their payments starting in January. On October 10, the SSA is expected to announce the official COLA for 2025.
This is a critical date for anyone receiving Social Security benefits.
Social Security payment schedule changes
Millions of seniors rely on these benefits to cover most or all of their retirement expenses.
Recent high inflation has made it challenging for seniors to live on Social Security alone. However, inflation is starting to cool, which may lead to a smaller COLA for 2025. Estimates indicate the 2025 COLA may be around 2.57%, lower than the 3.2% raise seniors received in January 2024.
If you’re concerned about a potentially lower COLA, it’s important to take action. Evaluate your spending and look for areas to reduce expenses. Consider relocating to a more affordable area or downsizing to a smaller home.
If these options aren’t feasible, part-time gig work could help supplement your income. In New Jersey, nearly 1.7 million residents receive Social Security income, with $3.35 billion in total monthly payments in 2023. The median monthly payment for a retired worker in New Jersey is $2,100.
Assuming a 2.57% COLA in 2025, beneficiaries could see an additional $53.97 per month. Despite adjustments through COLA, increases may not always adequately reflect the rising costs faced by seniors. A survey indicated that many seniors had to deplete their savings due to high prices and feared their retirement income wasn’t sufficient for essential costs.
The Social Security Administration offers tools and resources to help individuals estimate their potential payments. The Quick Calculator provides benefit estimates based on input information, and users can create online accounts for personalized estimates and to manage their benefits. Stay informed about the official COLA announcement on October 10 and utilize the available resources to plan your retirement income effectively.
April Isaacs is a news contributor for DevX.com She is long-term, self-proclaimed nerd. She loves all things tech and computers and still has her first Dreamcast system. It is lovingly named Joni, after Joni Mitchell.
