As we approach the end of the year, Social Security recipients are eagerly awaiting the announcement of the 2025 Cost-of-Living Adjustment (COLA), which is expected to be confirmed by the Bureau of Labor Statistics on October 10, 2024.
This adjustment aims to offset inflation and increase Social Security benefits for retirees, survivors, the disabled, and Supplemental Security Income (SSI) recipients.
However, there has been some confusion regarding the timing of this increase and whether it will affect payments scheduled for the remainder of October 2024. Let’s dive into the details and clarify how the payments will be impacted.
Key October Payment Dates
The last two Social Security payments in October are scheduled for the following dates:
- October 16, 2024: Payments will be sent to beneficiaries born between the 1st and the 10th of the month.
- October 23, 2024: Payments will be sent to beneficiaries born between the 11th and the 20th of the month.
It’s important to note that these payments will not reflect the COLA increase that will be announced on October 10, 2024. Instead, the COLA adjustment will take effect starting with the payments issued in January 2025.
When Will the COLA Increase Apply?
Although the COLA increase will be announced in October, the adjustments won’t be reflected in payments until January 2025. The Social Security Administration (SSA) requires time to implement the new rates, and any increase will only affect payments issued after the start of the new year. This means that the payments you receive in October and the rest of 2024 will still be based on the pre-COLA adjustment rates.
In January 2025, beneficiaries will begin to see an increase in their payments, likely reflecting a COLA increase of around 2.5% to 3.2%, depending on inflation data at the time of the announcement.
Current Social Security Payment Averages
To provide context, here’s a breakdown of the average Social Security payments beneficiaries currently receive under different categories:
| Category | Average Monthly Payment (2024) | Expected Payment After COLA (2.5%) |
|---|---|---|
| Retirement Benefits (Age 67) | $1,900 | $1,948 |
| Survivor Benefits | $1,505 | $1,543 |
| Disability Benefits (SSDI) | $1,537 | $1,575 |
| SSI Benefits (Individual) | $698 | $715 |
The above table reflects an average projected increase of 2.5%. Keep in mind that your individual payment may vary based on your age, earnings, and other factors, so the exact amount will differ.
Will the Increase Cover All Beneficiaries?
The COLA applies to all Social Security recipients, regardless of whether they are currently receiving benefits or are waiting to start. If you qualify for benefits but haven’t yet started receiving them, the COLA will be applied once your payments begin.
How Is the COLA Determined?
The COLA is determined by comparing the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of the current year to the same quarter from the previous year. The percentage increase in the CPI-W becomes the COLA, which is designed to keep Social Security payments in line with inflation.
For 2024, the increase was 3.2%, down from the substantial 8.7% increase seen in 2023. This year’s increase is expected to be around 2.5% to 3%, reflecting slower inflation compared to recent years.
What to Do If You Don’t Receive Your Payment?
If your Social Security payment for October doesn’t arrive on the expected date, the SSA advises waiting at least three postal days before contacting them. You can also check the status of your payment through your My Social Security account, where you’ll find up-to-date information on payment details and any potential delays.
| Birth Date Range | October 2024 Payment Date | Will it Include COLA? |
|---|---|---|
| 1st – 10th | October 9, 2024 | No |
| 11th – 20th | October 16, 2024 | No |
| 21st – 31st | October 23, 2024 | No |
Conclusion
While the COLA increase will be announced in October 2024, it won’t affect your Social Security payments until January 2025. The increase is expected to be modest compared to the last two years, with projections ranging between 2.5% and 3.2%.
This adjustment is crucial for helping beneficiaries keep up with rising living costs due to inflation. As always, it’s important to stay informed and check your My Social Security account for updates.
FAQs
1. Will I receive the 3.2% increase in October 2024?
No, the COLA increase takes effect starting with January 2024 payments. October payments will be at the current rate.
2. When will I receive my first payment with the COLA increase?
If you receive SSI, your first increased payment will be on December 29, 2023. For Social Security, the increase will appear in your January 2024 payment.
3. How much will my payment increase?
The average retiree will see a $59 monthly increase, bringing the average benefit to $1,907.
4. What if I don’t receive my COLA notice in the mail?
You can view your new benefit amount starting in December 2023 by logging into your my Social Security account.
5. Why is the 2024 COLA smaller than last year’s?
The 3.2% increase reflects a reduction in inflation compared to previous years, down from the 8.7% COLA in 2023, which was one of the largest increases in recent history due to high inflation rates.
References
- Social Security Administration (SSA) blog: www.ssa.gov
- Kiplinger: www.kiplinger.com
- Senior Citizens League (TSCL): www.seniorsleague.org
