The cost of living adjustment (COLA) is a key adjustment to Social Security payments in the United States, designed to maintain the purchasing power of beneficiaries in the face of inflation. For 2024, this increase was set at 3.2%, which represented a significant increase compared to previous years. However, the 2025 COLA will not be effective for all Disability retirees immediately, as it will depend on specific payment dates and the group to which they belong.
The last payment under the 2024 COLA for one group of Disability retirees is scheduled for December 18, keeping the adjustment in effect throughout this year. This payment will be higher than the one issued in December 2023, reflecting the increase applied in January. Despite this, the changes that the 2025 COLA will bring will not be implemented until the beginning of next year, leaving some retirees without immediate access to the new adjustment.
Knowing how these payments are distributed and when the new adjustments are applied is crucial to planning personal finances. The last payment of 2024 and what to expect with the start of the 2025 COLA for Disability retirees is just as important as the rest of the year’s payments, so knowing all the details is critical.
Last payments with the 2024 COLA for Disability retirees
December 18 will be a key date for Group 3 Disability retirees, as the last payment for the 2024 COLA will be issued. This 3.2% adjustment has remained constant throughout the year, ensuring that beneficiaries can meet the economic challenges caused by inflation.
Although this payment follows the same rules as previous payments, it is important to note that it will be higher than the payment issued in December 2023, when the current COLA had not yet been implemented. This increase, although not new, continues to make a significant difference in the finances of those who depend on Social Security.
To get this payment, beneficiaries must meet the usual conditions:
- Have begun getting benefits after May 1997.
- Have a birthday between the 11 and 20 of the month.
Those who meet these requirements will get their check on the established date, with no variations from previous months in 2024. However, beneficiaries should remember that this will be the last payment adjusted under the current COLA before the new percentage takes effect for 2025. All other Disability retirees will still be able to collect payments in subsequent weeks.
When does the 2025 COLA for Disability retirees arrive?
The 2025 COLA, set at 2.5%, will begin to take effect in January of next year. This percentage will be lower than the 2024 COLA, reflecting the slowdown in inflation in recent months. For Disability retirees, this means that their first adjusted check will arrive on scheduled dates in January, depending on their payment group.
Unlike other programs, Social Security implements the COLA uniformly once the calendar year begins, so no beneficiary will get the 2025 increase in December. This can lead to some confusion, as late 2024 payments are still subject to the current year’s adjustment, meaning that some beneficiaries will have to wait until January to notice the impact of the new adjustment.
The 2025 COLA seeks to ensure that retirees can maintain their standard of living despite economic changes. However, due to its lower percentage compared to 2024, some beneficiaries may see a less significant increase in their monthly checks. This fact highlights the importance of planning for expenses and being mindful of key dates on the Social Security calendar.
In conclusion, the 2025 COLA will bring new adjustments, but will not be immediately available to all Disability retirees. In the meantime, the December 18, 2024 payment will close out the year with the current adjustment, marking the end of a period of significant increases in monthly checks. Although it is true that, as a curiosity, the 2025 COLA will appear early on December 31st for those citizens who have an accepted SSI check and activate Direct Deposit as a collection method.
