When will COLA 2025 payments be sent?

The Social Security Administration (SSA) has announced a 2.5% cost-of-living adjustment (COLA) for 2025 to ensure that benefits keep pace with inflation. This adjustment is based on the increase in the Consumer Price Index for Wage Earners and Urban Employees (CPI-W) for the third quarters of 2023 through 2024. Social Security and Supplemental Security Income (SSI) recipients will see their payments increase beginning in January 2025.

As for tax rates, Social Security and Medicare contributions are the same as last year: salaried employees will continue to pay 7.65%, while the self-employed will pay 15.30%. The Social Security portion (6.20%) applies to earnings up to the taxable maximum, which increases from $168,600 in 2024 to $176,100 in 2025. Medicare taxes (1.45%) apply to all income, with an additional 0.9% for individuals earning more than $200,000 ($250,000 for married couples filing jointly).

Income thresholds

The income thresholds for receiving Social Security subsidies have also been updated. To obtain coverage in 2025, individuals must earn $1,810, up from $1,730 in 2024. Retirement income limits have also increased: those retiring before full retirement age can earn up to $23,400 annually ($1,950 monthly) with no reductions. In the year of full retirement age, the limit increases to $62,160 annually ($5,180 monthly). Once beneficiaries reach full retirement age, there are no earnings limits.

Disabled people, retirees and surviving spouses

For individuals receiving disability benefits, the Substantial Gainful Activity (SGA) threshold increases to $1,620 per month for non-blind individuals and $2,700 per month for blind individuals. The Trial Work Period (TWP) threshold increases to $1,160 per month. SSI benefits will also increase: individuals will receive $967 per month (up from $943 in 2024) and couples, $1,450 per month (up from $1,415 last year).

Average Social Security payments will also increase with the COLA adjustment. Retired workers will see their monthly benefits increase from $1,927 to $1,976, while elderly couples where both are receiving benefits will see an increase from $3,014 to $3,089. Surviving spouses with two children will see their benefits increase from $3,669 to $3,761, and elderly unmarried surviving spouses will receive $1,832, up from $1,788 previously. Disabled workers, along with their spouses and children, will see their benefits increase from $2,757 to $2,826.

Students

The SSI program includes updates for students, with income exclusions increasing to $2,350 per month and $9,460 per year. Beneficiaries can check their updated benefits through their My Social Security online account, allowing them to stay informed of these changes and their impact.

When will the increased Social Security payments be sent?

These are the Social Security payment dates in 2025 according to the COLA schedule:

• December 31, 2024: Supplemental Security Income (SSI) payments with the 2025 COLA will be issued on this date.
• January 8, 2025: Regular Social Security payments for individuals with birthdates 1 through 10 will be distributed.
• Jan. 15, 2025: Payments will be paid for persons born between Jan. 11-20.
• January 22, 2025: Payments will be distributed for birthdates 21 through 31.

Beneficiaries receiving both SSI and Social Security will receive their SSI payment on December 31, 2024, while their Social Security payment will follow the usual January schedule.

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