December sees some changes for Social Security payments. While the Social Security administration releases a calendar each year specifying the dates as to when you will receive your payments, it can still sometimes come as a surprise when there are changes to a regular routine of payments you have gotten used to over the year. In addition, this month will see the cost-of-living-adjustment (COLA) statistic be implemented for some beneficiaries payments.
The end of the year sees disruption to regular payment schedules
December is not the only month where there are slight changes to the regular Social Security payment schedule. Generally, those who receive Supplementary Security Income (SSI) receive their payments on the first of each month. However, this year, the first of December fell on a weekend which meant that SSI beneficiaries received two payments in November instead, one for their November payment and one for their December payment.
However, because January 1st 2025 is a federal public holiday, SSI beneficiaries will still receive a payment in December. It is important to remember however that this “bonus” payment is for January. Beneficiaries will receive their payment on December 31st. These payments will reflect the COLA increase you can expect all your 2025 payments to have. However, if you receive both Social Security and SSI payments, you will still receive your first 2025 payments on January 3rd.
How to check if you will be receiving a bonus payment this month
If you are still unsure if you will be receiving a bonus payment or not this month, check the following schedule to confirm which payments you can expect:
- Dec. 31: SSI recipients will receive their new cost-of-living adjustment (COLA), which will reflect their January 2025 benefit.
- Jan. 3: Individuals who claimed Social Security before May 1997 or who receive both Social Security and SSI will see their new 2025 COLA in their payments on this date.
- Jan. 8: Those born between the 1st and 10th of the month will receive their updated COLA with this payment.
- Jan. 15: Recipients born between the 11th and 20th of the month will get their new COLA on this date.
- Jan. 22: People born between the 21st and 31st will see their cost-of-living increase with this payment.
How is Social Security changing for 2025
Next year, Social Security beneficiaries will see their payments increase due to the new COLA statistic for 2025. Next year, payments are expected to increase by 2.5%. COLA is an increase in income or benefits to keep pace with rising living costs, particularly inflation. The statistic for 2025 is based on the increase in the Consumer Price Index for Wage Earners and Urban Employees (CPI-W) for the third quarters of 2023 through 2024. The COLA statistic is also applied to Supplementary SSI payments and Disability payments.
In addition, with the Trump administration gearing up to take office for a second presidential term at the start of next year, there are questions surrounding what the future of Social Security will look like. Currently, Social Security is set to be depleted by the start of 2030. While President-elect Donald Trump has assured beneficiaries that no changes will be made to their payments during his presidency, policy makers have cautioned that, to increase the longevity of the fund, payments must either be reduced to beneficiaries or higher Social Security tax rates must be implemented.
It is important for beneficiaries to note however, that the fund becoming depleted does not mean that Social Security will cease to exist. While the trust fund may run out of reserves, Social Security will still be able to pay benefits through ongoing payroll taxes, which continue to be collected from workers. However, without the trust fund’s reserve, Social Security would only be able to pay a portion of the promised benefits, and those payments could be reduced unless Congress takes action to address the shortfall. Regardless, President Trump is expected to implemented changes regarding payments.
