Starting January 2025, Social Security recipients aged 65 will see their monthly payments rise to an average of $1,622. This increase is part of a 2.5% cost-of-living adjustment (COLA) by the Social Security Administration (SSA), aimed at helping retirees cope with inflation. Here’s what you need to know about this change and how to check your payment status.
What is COLA and How Does It Impact You?
The COLA adjustment ensures Social Security benefits keep pace with inflation. For 2025, the increase is 2.5%, slightly below the 20-year average of 2.6%. While this may seem small, it translates to approximately $50 more per month for most recipients. For example, the average monthly benefit for retirees is now expected to reach $1,920.
Why Your Payment Amount May Differ
Although the average monthly payment for 65-year-olds is $1,622, the amount you receive could be higher or lower. Here’s why:
- Lifetime Earnings: Social Security benefits are based on your highest 35 years of earnings. Higher lifetime earnings result in larger payments.
- Age of Claiming: If you start claiming benefits at 65, you’ll receive less than if you wait until your full retirement age (FRA) or later. For those born in 1960 or after, the FRA is 67. Claiming at 65 results in a 13.3% reduction, while waiting until 70 can increase your benefit by up to 24%.
- Work History: A longer or higher-paying career typically leads to increased benefits.
How to Check Your Payment Status
To stay on top of your Social Security payments, take these simple steps:
- Create a My Social Security Account: Visit the SSA website to set up a secure account. This portal provides access to your payment schedule, benefit estimates, and personal records.
- Review Your Statement: Check your annual Social Security statement to confirm your earnings record and get an updated benefit estimate.
- Know Your Payment Date: Social Security payments are distributed based on your birthdate:
- Birthdates 1st–10th: Paid on the second Wednesday of the month.
- Birthdates 11th–20th: Paid on the third Wednesday.
- Birthdates 21st–31st: Paid on the fourth Wednesday.
Tips to Maximize Your Social Security Benefits
If you want to make the most of your Social Security income, consider these strategies:
- Delay Your Claim: Waiting to claim benefits until after your FRA can significantly increase your monthly payment.
- Keep Working: Additional years of high earnings can replace lower-earning years in your benefits calculation.
- Explore Spousal and Survivor Benefits: Married couples and widows or widowers may qualify for additional benefits based on their spouse’s earnings record.
What’s Next for Retirees?
The upcoming payment increase reflects the SSA’s ongoing efforts to ensure retirees can maintain their standard of living despite rising costs. Whether you’re planning to claim benefits soon or are already receiving them, it’s essential to stay informed and take steps to maximize your income.
