To the surprise of many United States citizens, Social Security payments scheduled for the end of 2024 will bring with them some important news. Although these payments are sent in the current year, some will include the 2025 cost-of-living adjustment (COLA). This annual adjustment, implemented to offset inflation, allows beneficiaries to maintain their purchasing power without being affected by rising prices. Therefore, it is customary to get this increase in the corresponding year, that is, 2025, and not in the year prior to the increase.
One of the most relevant payments in this regard will be the Supplemental Security Income (SSI), which will be delivered on December 31, 2024. This payment is sent in 2024, as we have said, but will carry with it the established increase. The main purpose of everything related to this advance of the SSI benefit is to prevent citizens from not having their monthly benefit on time, so some of them may get it even earlier.
Who gets Social Security with Cost of Living in December 2024?
The 2025 cost-of-living adjustment (COLA) will be advanced to Supplemental Security Income (SSI) recipients scheduled to collect on December 31, 2024. Because January 1 is a federal holiday, the Social Security Administration is making this advance to ensure that the payment arrives without delay. Thus, beneficiaries will have access to the new adjusted amount just before the end of the year.
Supplemental Security Income is aimed primarily at adults over age 65, people with disabilities or blindness, and children who qualify under the established criteria. This program is vital for those with limited income and resources. Ultimately, the goal of SSI is to help those most in need.
For that reason, advancing the payment with the COLA included ensures that these beneficiaries can more easily afford basic expenses at this end of the year when things can be so difficult in some households. Likewise, it is also true that the payment of this benefit would arrive at the beginning of January at the latest. So, in the end, no American will have to wait too long.
On the other hand, the 2025 COLA has been set at 2.5%, which means that payments will experience a noticeable increase. For example, a beneficiary who gets the maximum amount of $943 in 2024 can expect an increase that raises his or her check to $967 in January 2025. While the increase may seem small, it has a positive impact by providing more cushion to cover everyday expenses, especially for households with limited resources. Still, in this case we are talking about the maximum check, something not all Americans can have.
This COLA advance also makes it easier for recipients to organize their finances heading into the new year, a time that can be very difficult for some Americans. With the increase starting in December, it is easier to plan expenses and ensure a more stable financial transition.
Of course, all of this makes sense if we have Direct Deposit activated. This method of collection is immediate, which means that the SSI payment will appear in the checking account without having to wait. Those who do not have Direct Deposit activated will have to wait a few days, but in a matter of 3 days maximum the money appears in the current account.
