COLA Increase 2025: Know Expected Monthly Increase Amount, Eligibility & Payment Dates

As of Now in 2024, almost 67 million citizens or 1 out of every 5 U.S. residents received social security monthly income. The Social Security Administration (SSA) manages the financial aid provided to the retired seniors, low-income individuals and their families. The citizens with any disability and children are also benefitted by the SSA programs. The eligible citizens who paid to social security during their employment years are provided with a monthly income of social security for their monthly expenses.

These social security income payments are based on the change in the cost-of-living adjustments (COLA). The COLA in 2024 is 3.2% which is implemented for the recipients. Through this blog, I will cover all the details regarding the COLA increase in 2025 which will include its expected rise in the following year along with how does SSA calculate it and major changes on can expect in social security payments.

COLA Increase in 2025 Update

The SSA is known to make adjustments in the Social Security monthly payments based on the annual increase in COLA. In 2024, the COLA is increase by 3.2% which is said to be the least in past three years. The COLA in 2022 was 5.9% and the following of it was the highest in decades with an increase of 8.7%. The COLA increase plays a key role while determining the average monthly aid provided to eligible citizens of the country via SSA. As of May 2024, it is expected that the cost of living may rise by 3.3% in the following year. But according to some reports, by the fall of 2024, we can expect an increase up to 3.5% for 2025. As a consequence, the beneficiaries can expect a major change in their monthly pension. The majority of the beneficiaries under the social security payments are the retired seniors, disabled or survivor citizens along with the low-income children and households.

The SSA uses the consumer price index (CPI) to calculate the average COLA increase annually which is based on consumer’s full basket of goods and services. The SSA provides the social security income under several programs which are categorized on the needs of the recipients. These programs include Supplemental Social Income (SSI), Social Security Disability Insurance (SSDI) and Veterans’ Affairs (VA) benefits. All these financial support programs are responsible to assist the needy citizens if they qualify the eligibility criteria set by the federal government of America. The payment is deposited directly to the respective bank accounts of the claimants by the department on the scheduled payment dates.

Attention! No COLA Increase Will Occur Until January 2025

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COLA Increase 2025 Quick Details

Post title COLA Increase 2025
Country The USA
Department SSA
Category Government aid
Beneficiaries Retirees, low-income and disabled citizens
For year 2025
Expected COLA increase 2.6%
Official website

COLA Increase 2025: Know Expected Monthly Increase Amount, Eligibility & Payment Dates

How Will COLA 2025 Impact Social Security?

As I have mentioned earlier, the COLA increment will impact the average social security payment for the beneficiaries. In 2024, the average social security income for an eligible individual is $943 per month on qualifying the eligibility criteria. For a married couple, if they opt to file jointly, their average income is set at $1,415 per month in 2024. SSA also provides the disability benefits of $1,550 per month but the recipient may have to show their disability proof and the payment will depend on the degree of disability. If the expected COLA of 3.3% or 3.5% implemented in 2025, then you can expect the following changes:

Category COLA 2024 (3.2%) COLA 2025 (3.3%) COLA 2025 (3.5%)
For individual $943 $974.1 $976
For married couple $1,415 $1,461.7 $1,464.50
For disabled citizen $1,550 $1,601.2 $1,604.25

Eligibility Criteria for the COLA Increase Benefits in 2025

The social security income is received by a certain group of people who fall in the category of certain guidelines set by the U.S. government. You can check the eligibility criteria in the following points:

  • A person must be a citizen of the United States of America. In addition to it, a person must reside in one of the fifty states or territories of the country.
  • The federal government has set the earliest year for the retirement is 62. Thus, a person must be 62 years old or above to be eligible for the COLA increase in 2025.
  • The increment will be claimed only by the SSI, SSDI and VA beneficiaries.
  • The person must have a valid Social Security Number (SSN) in order to be eligible.
  • The income of the recipient must not exceed the threshold limit.
  • If a disabled citizen is filing for the social security benefits, then the department will ask for a proof of the disability which must be signed by a professional healthcare staff.
  • A person must have at least 40 work credits to be eligible which is equals to minimum 10 years of employment years.

COLA Increase 2025 Social Security Payment Dates

We can expect the official announcement of the COLA increase of 2025 by October 2024 via SSA. the COLA 2025 will implement on 1st of January 2025 and the beneficiaries will be able to get an increase in their social security payments. The SSA usually distributes the monthly payment on five different payment dates. At first, the SSI beneficiaries receiving the aid before April 1997 are distributed with the income on the first of each month. apart from that, the department issued the second payment for SSDI beneficiaries on third of each month who filed their social security before April 1997. It is advised that the payment will arrive a day before in case of a holiday.

In addition to it, there are still three more payment dates for the beneficiaries who are receiving their social security income after April 1997. The payment dates will be based on birth dates of the beneficiaries which will be distributed on second, third and fourth Wednesday of the month. If your birth date falls between 1st and 10th of the month, your payment will arrive on second Wednesday of the month. If your birth date falls between 11th and 20th of the month, then you can expect your payment on third Wednesday of the month. Finally, if your birth date falls between 21st and 31st of the month, the SSA will distribute your payment on the fourth Wednesday of the month.

COLA Increase 2025 Fact Checks

SSA will announce the COLA increase for 2025 in October of this year which will be implemented in January 2025. On implementing the expected COLA increase, social security beneficiaries may expect a rise in their monthly supplemental income. However, the aforementioned details regarding the COLA increase in 2025 are considered as early estimations based on the recent rise in cost of living and does not intend to provide false information. The social security recipients are advised to wait for SSA to provide credible updates on COLA which is expected to arrive in October 2024. For more information, you can also visit the official website of SSA.

Disclaimer: As per the rise in living expenses, the early speculations are being taken regarding the expected COLA increase for 2025. The details in the post are sourced by the official news website of USA today and it is advised to the beneficiaries that the number may vary as per the official announcement via SSA.

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