Millions of people in the United States who get Social Security will be affected by important dates in the new payment schedule for January 2025. After the first payment of the month was made on January 8, all eyes are now on January 15, which is the next important date.
A lot of retirees and other eligible people will get their monthly checks on that day, which will give them financial security at the start of the new year.
Along with the payment on January 15, this month’s schedule will end on January 22, which is also the last scheduled payment date for beneficiaries. To get the most out of the benefits the Social Security Administration (SSA) offers, you need to know how this system works and what you need to do to get each payment.
That you should know about the payment on January 15 for the second group
The payment made on January 15 is the second big payment of the month. This is meant for a certain group of recipients who meet certain conditions. People who want to be eligible must have started getting benefits after May 1997 and have been born between the 11th and 20th of any month.
Millions of Americans in this group depend on their Social Security payments to pay for things like housing, health care, and other necessities. The SSA sets up a schedule that makes sure payments are always made on time. This way, the millions of people who are eligible, from retirees to people with disabilities, are always in line to get their money.
How beneficiaries will receive their Social Security payments
People who are expecting to get their checks on January 15 should remember the following. First, most payments will be made through direct deposit, which makes sure that the money gets sent quickly and safely. But there are also paper checks. People who still get paper checks may have to wait a little longer for their money because payments sent by mail may take a few extra days to arrive.
And on January 22, Social Security payments for the month come to an end. The last payment for this month is due on January 22, which comes after the payment on January 15. People whose birthday is between the 21st and 31st of any month will get payments this time, ending the January 2025 cycle.
What changes can beneficiaries expect to see in Social Security payments for 2025 compared to previous years?
If you want to know the official details, especially about cost-of-living adjustments (COLA), wait until the Social Security Administration (SSA) makes its annual announcement, which usually happens in October of the previous year. The actual changes in benefits in 2025 will depend on inflation, the economy, and any new laws that Congress passes.
Cost-of-Living Adjustment (COLA)
Annual COLA Determination
Inflation data from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) during a certain measurement period (usually the third quarter of the previous year) is used by the SSA to figure out a COLA every year.
What to Expect for 2025
Since the COLA for 2025 will be based on inflation data from the third quarter of 2024, that number will not be official until the SSA looks it over and makes the announcement, which should happen in October 2024.
If inflation trends stay the same, beneficiaries can usually expect their monthly payments to go up by a small amount. If inflation is much higher or lower than in previous years, the COLA could change.
Medicare Part B premiums, which are often taken out of Social Security checks, can change a beneficiary’s monthly net income, even though they do not change their Social Security payment directly. In most cases, when Part B premiums go up, retirees’ net benefit amount goes down. This is true even if their gross Social Security benefit has gone up due to COLA.