The Social Security Administration (SSA) is set to distribute another round of payments this week, with millions of retired and disabled Americans set to receive their benefits. Given the vast number of beneficiaries, the SSA staggers its payments based on birthdates and claim dates to ensure smooth delivery. This year, the SSA expects to distribute around $1.5 trillion in benefits, covering retirement, disability, and survivor payments.
Schedule
If you’re a Social Security recipient, your payment date depends on your birthdate and when you claimed your benefits. This week, specifically on Wednesday, September 18th, payments will be sent to those born between the 11th and the 20th of any month. Here’s a breakdown of the typical Social Security payment schedule:
- Second Wednesday (September 11th): For those born between the 1st and 10th.
- Third Wednesday (September 18th): For those born between the 11th and 20th.
- Fourth Wednesday (September 25th): For those born between the 21st and the 31st.
These dates apply to beneficiaries of the retirement, survivor, and disability insurance (RSDI) programs. If you started receiving benefits before May 1997, your payment will arrive on the third of each month, unless it falls on a weekend or holiday.
To qualify for these payments, retirees must have met specific criteria such as full retirement age, sufficient working credits, and Social Security contributions. If you haven’t yet reached full retirement age, be sure to review these requirements with a Social Security expert or financial advisor to ensure you’re on track.
COLA
One of the most anticipated announcements from the SSA each year is the cost of living adjustment (COLA), which helps beneficiaries keep pace with inflation. The official 2025 COLA announcement will be made on October 10, and the latest projections suggest a 2.5% increase. This is slightly lower than the 2.57% projection made in August.
The COLA is calculated based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures inflation during the third quarter of the year. While the COLA helps boost payments, it’s important to note that the amount can vary slightly depending on final inflation figures in September.
In 2024, retirees are receiving a 3.4% increase, and in 2023, beneficiaries enjoyed a notable 8.7% increase due to soaring inflation. However, the projected COLA for 2025 is more modest, reflecting the current economic conditions.
Payments
If the 2.5% COLA becomes official, retirees and disabled workers will see their monthly Social Security payments increase in January 2025. The table below outlines the estimated payment increases for different groups:
| Retirement Age | Current Payment | 2.5% COLA | 2.57% COLA |
|---|---|---|---|
| Average Retiree | $1,900 | $1,949 | $1,950 |
| Age 62 | $2,710 | $2,778 | $2,780 |
| Age 67 | $3,822 | $3,917 | $3,920 |
| Age 70 | $4,873 | $4,995 | $4,998 |
Survivor Benefits
Survivor benefits, like retirement and disability payments, will also increase. Here’s what beneficiaries can expect based on the projected COLA rates:
| Beneficiary Type | Current Payment | 2.5% COLA | 2.57% COLA |
|---|---|---|---|
| Average Survivor | $1,505 | $1,542 | $1,544 |
| Individual | $1,773 | $1,817 | $1,819 |
| Two Children | $3,653 | $3,744 | $3,747 |
These increases may be modest, but for those receiving the maximum monthly benefits, they can make a significant difference in retirement income. For example, someone who retires at age 70 in 2024 could see their maximum benefit rise from $4,873 to nearly $5,000.
Maximum Benefits
If you’re aiming to receive the highest possible Social Security payments, it’s important to know that your benefits depend on a variety of factors, including your full retirement age and your earnings over your 35 highest-earning years.
For 2024, the maximum benefit at full retirement age is $3,822, but it can increase to $4,873 if you delay retirement until age 70. However, retiring early at 62 reduces your maximum benefit to $2,710.
Maximizing your benefits requires careful planning. Consulting with a financial advisor or Social Security expert is a wise move to ensure you understand the rules and requirements that apply to your unique situation.
Looking Ahead
With the official COLA announcement set for October 10, it’s important for all Social Security beneficiaries to stay informed about upcoming changes. These updates, while minor for some, can have a substantial impact on those who rely heavily on Social Security income. Be sure to keep an eye on the SSA’s website for the most up-to-date information and consult with a professional if you need guidance on how these changes will affect your benefits.
FAQs
When is the next Social Security payment?
The next payment is on September 18th for those born between the 11th and 20th.
How is the 2025 COLA determined?
The COLA is based on the CPI-W from the third quarter of 2024.
What is the projected 2025 COLA increase?
The 2025 COLA is estimated to be around 2.5%.
How much will I receive with the COLA?
A 2.5% COLA will add approximately $46.80 to a $1,870 benefit.
Can I increase my Social Security benefits?
Yes, delaying retirement and maximizing your earnings can increase your benefits.
