Cost of Living Adjustment and Eligibility and Payment Dates for 2025 – The Cost of Living Adjustment (COLA) for Social Security benefits is a topic of significant interest as we approach 2025. COLAs are expected to be around 2.6% in 2025, reflecting a slowdown in inflation.
More than 66 million Americans, including retirees, disabled workers, and their dependents, depend on this adjustment.
Here’s what you need to know about the 2025 COLA, including the amount, eligibility criteria, and payment schedule.
COLA (Cost of Living Adjustment) – what is it?
As a result of inflation, Social Security and Supplemental Security Income (SSI) benefits are adjusted every year by the Cost of Living Adjustment (COLA).
Beneficiaries’ purchasing power remains stable as the cost of living increases. According to the Bureau of Labor Statistics, the adjustment is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Cost of Living Adjustment and Eligibility and Payment Dates for 2025
Cost of Living Adjustment and Eligibility and Payment Dates for 2025
Percentage of COLA (Cost of Living Adjustment) in 2025
In 2025, the COLA is expected to be 2.6%. In 2024, it was 3.2%. There has been a slowdown in inflation throughout 2024, which has led to the COLA adjustment.
Despite this lower percentage than previous years, beneficiaries still receive an increase in payments to keep up with rising living costs.
COLA (Cost of Living Adjustment) eligibility for 2025
COLA eligibility for 2025 remains the same as previous years. This applies to:
- People who receive Social Security benefits as retirees.
- Workers who receive Social Security Disability Insurance (SSDI).
- Benefits received by survivors of deceased family members.
- COLA adjustments are also available to recipients of Supplemental Security Income (SSI).
Dates for payments
In January 2025, Social Security beneficiaries will receive the COLA increase. Payment dates are as follows:
- Payments will be made on the second Wednesday of January 2025 to those born from the 1st to the 10th of the month.
- The payments will be made on the third Wednesday of January 2025 for those born between the 11th and the 20th of the month.
- Payments will be made on the fourth Wednesday of January 2025 for those born between the 21st and the 31st of the month.
COLA (Cost of Living Adjustment) comparison table for 2025
| Year | COLA Percentage | Inflation Rate | Beneficiary Payment Dates |
|---|---|---|---|
| 2023 | 8.7% | High Inflation | January 2024 |
| 2024 | 3.2% | Moderate Inflation | January 2025 |
| 2025 | 2.6% (Projected) | Low Inflation | January 2026 (Based on Birthdate) |
Final thoughts
Cost of Living Adjustment and Eligibility and Payment Dates for 2025 – Despite a cooling inflation environment, the 2025 COLA adjustment is essential to maintain the purchasing power of Social Security beneficiaries.
The increase will be reflected in January 2025 payments for retirees, disabled workers, and SSI recipients, ensuring that their benefits keep pace with rising living costs.
The 2025 COLA remains a vital tool in protecting millions of Americans’ financial well-being, even though it is lower than recent years.
