The Social Security Administration (SSA) has unveiled the payment schedule for December, revealing a striking difference this month—there will be five payments, including Supplemental Security Income (SSI), which was already disbursed. This increase in the number of payments may raise questions among beneficiaries, but it’s not due to any bonus or extra checks. Instead, it reflects adjustments made for holidays and payment deadlines.
In December, an extra SSI payment will be issued on December 31 instead of January 1, 2025, because New Year’s Day falls on a holiday. This change ensures beneficiaries receive their Supplemental Security Income on time. Importantly, these payments will also incorporate the first 2.5% Cost-of-Living Adjustment (COLA) increase for 2025.
Why Does Social Security Adjust Benefits Annually?
The SSA’s mission, established in 1935, is to prevent seniors from falling into poverty by providing financial support. However, inflation has challenged this goal over time. To address this, the SSA introduced COLA in 1975, ensuring that benefits keep pace with rising prices. COLA adjustments are calculated using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). By measuring the prices of over 200 goods and services, COLA ensures that Social Security benefits remain relevant to beneficiaries’ needs.
When Will Retirees and SSDI Recipients Receive Their Increased Payments?
For retirees and SSDI recipients, the increased payments will be distributed across four paydays in January 2024. Here’s the breakdown:
- January 3, 2024: Beneficiaries who started receiving Social Security before May 1997 will receive their payments. The maximum payment could reach $5,180, though the average is expected to be $1,907.
- January 8: For those born between the 1st and the 10th of the month.
- January 15: For those born between the 11th and the 20th of the month.
- January 22: For those born between the 21st and the 31st of the month.
How Are Social Security Maximum Benefits Updated?
The SSA adjusts various thresholds and benefit levels each year based on the COLA. These updates include:
- Maximum Taxable Earnings: The highest income level subject to Social Security taxes.
- Retirement Earnings Test Amount: The exempt amount for those continuing to work post-retirement.
- Substantial Gainful Activity (SGA): The income level that determines eligibility for Disability Insurance benefits.
Increased Social Security Benefit For Retirees
Retirement benefits are also adjusted depending on the age at which beneficiaries claim them. Here’s a look at the expected maximum benefits for 2025:
| Expected Maximum Benefit | |
| 62 | $2831 |
| 65 | $3374 |
| 66 | $3795 |
| 67 | $4043 |
| $5108 |
When will Social Security Fairness Act be effected?
Act will effected in 2025.
Extra money from social security this month
Yes, You can expect increased social security in January month. There is 2.5 % COLA increased to be applied on existing payment.
What changes are coming to social security in 2025
There will be 2.5 % COLA increase and also Social Security Fairness Act affect which is probably seen effected in 2025.
Who qualifies for the January 3 payment?
The January 3 payment is for beneficiaries who started receiving Social Security benefits before May 1997.
Why does the SSA adjust Social Security payments annually?
The SSA adjusts payments annually to combat inflation and ensure that beneficiaries maintain their purchasing power. This is done through the COLA mechanism.
