If you’re on Social Security, you may see a boost in your monthly check this January. Thanks to the 2.5% Cost-of-Living Adjustment (COLA) for 2025, the average payment for retired workers will be $1,916. But not everyone will receive the same amount. Here’s how to check your eligibility and find out when your payment will arrive.
How Are Social Security Benefits Calculated?
The $1,916 average applies to retired workers, but the actual payment you receive depends on several factors:
- Your Lifetime Earnings: The Social Security Administration (SSA) looks at your 35 highest-earning years. If you worked fewer than 35 years, years without earnings will lower your benefit amount.
- Your Retirement Age: Did you claim benefits before your Full Retirement Age (FRA)? If so, your monthly payment will be lower. For those born in 1960 or later, the FRA is 67. Delaying retirement beyond your FRA can increase your payments by up to 8% per year until age 70.
- The 2025 COLA: The 2.5% increase for 2025 aims to help beneficiaries keep up with inflation.
January 2025 Payment Schedule
Your payment date is determined by your birthdate:
- If you were born between the 1st and 10th: Expect your deposit on Wednesday, January 8, 2025.
- If you were born between the 11th and 20th: Your payment will arrive on Wednesday, January 15, 2025.
- If you were born between the 21st and 31st: You’ll receive your payment on Wednesday, January 22, 2025.
If you receive Supplemental Security Income (SSI), your payment for January will be deposited on December 31, 2024, since January 1 is a holiday.
Who Qualifies for These Payments?
- Retired Workers: To receive Social Security retirement benefits, you need at least 40 work credits (about 10 years of work).
- Disability (SSDI) Recipients: If you have a qualifying disability and meet work credit requirements based on your age, you can receive benefits through SSDI.
- Low-Income Seniors and Disabled Individuals (SSI): SSI benefits are available to those with limited income and resources. In 2025, resource limits are $2,000 for individuals and $3,000 for couples.
Tips to Maximize Your Social Security Benefits
- Double-Check Your Earnings Record: Mistakes in your earnings history can cost you money. You can view your record online by creating a “my Social Security” account.
- Choose the Right Time to Retire: Delaying your benefits past your Full Retirement Age can significantly increase your monthly payment.
- Stay Informed: Social Security rules and benefits change periodically. Visit the official SSA website for updates.
Final Thoughts
With the new COLA adjustment, Social Security payments are set to give retirees and other beneficiaries a little extra cushion. Understanding how your benefits are calculated and when you’ll receive them can help you plan your budget more effectively. Make sure to review your records and consider delaying retirement if you want to boost your future income.
If you’re still unsure about how much you’ll receive, log into your “my Social Security” account or contact the SSA directly. Stay ahead of the game and maximize your benefits!