In the United States, the cost of living adjustment (COLA) is a key change to Social Security payments. Its purpose is to keep beneficiaries’ purchasing power stable in the face of inflation.
The rate of increase was set at 3.2% for 2024, which was a big jump from previous years. However, the 2025 COLA will not start right away for all Disability retirees because it will depend on their payment dates and the group they are in.
One group of Disability retirees will get their last payment under the 2024 COLA on December 18. The adjustment will still be in effect for the rest of the year.
Because of the increase that happened in January, this payment will be more than the one that was sent out in December 2023. Even so, the changes that the 2025 COLA will bring will not happen until the beginning of next year. This means that some retirees will not be able to use the new adjustment right away.
When planning your personal finances, it is important to know how these payments are split up and when the new changes take effect. It is just as important to know about the last payment of 2024 and what to expect when the 2025 COLA starts for Disability retirees as it is about the other payments that year.
Last payments with the 2024 COLA for Disability retirees
The last payment for the 2024 COLA will be sent to Group 3 Disability retirees on December 18. This is a very important date. This 3.2% change has stayed the same all year, making sure that those who benefit can handle the problems that inflation causes.
This payment will follow the same rules as previous ones, but it is important to remember that it will be more than the payment made in December 2023, before the current COLA was put in place. Even though this increase is not brand new, it still makes a big difference for people 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.
People who meet these requirements will get their check on the set date, just like they did in previous months in 2024. But beneficiaries should keep in mind that this is the last payment that will be changed under the current COLA.
In 2025, the new percentage will be used instead. In the coming weeks, all other Disability retirees will still be able to get their payments.
When does the 2025 COLA for Disability retirees arrive?
The 2025 COLA, which is set at 2.5%, will start to work in January 2025. Because inflation has been going down lately, this percentage will be less than the 2024 COLA. This means that, for Disability retirees, their first adjusted check will come on the dates set for January, depending on their payment group.
In contrast to some other programs, Social Security applies the COLA consistently once the new year starts. This means that no beneficiary will get the 2025 increase in December.
This can be confusing because payments made in late 2024 are still subject to the adjustment for this year. This means that some beneficiaries will not see the effects of the new adjustment until January.
The 2025 COLA is meant to make sure that retirees can keep up their standard of living even if the economy changes.
But because the percentage is lower than it was in 2024, some beneficiaries may not see as big of an increase in their monthly checks. This fact shows how important it is to plan for costs and keep track of important dates on the Social Security calendar.
Finally, the 2025 COLA will bring about new changes, but not all Disability retirees will be able to get them right away. For now, the payment on December 18, 2024, will end the year with the current change.
This will be the last time that monthly checks have gone up by a large amount. As an interesting aside, the 2025 COLA will show up early on December 31st for people who have an accepted SSI check and set up Direct Deposit as a way to get their money.