The checks issued by the Social Security Administration for both Age Retirement and Disability cannot increase during the year. The same check we get as retirees in the United States within the month of January is the same check we will get for the rest of the months of the year. Thus, it is not possible to get a COLA increase in the middle of the year 2024.
What is certain is that the August 2024 payments are higher than the August 2023 payments. Specifically, the Social Security Administration increased retirement checks by 3.2% over the previous year. Thus, the maximum checks in this year 2024 are higher than in previous years. This means that beneficiaries may get a slightly higher benefit in the months of 2024 compared to the months of previous years.
The COLA is calculated each year from inflation in the third quarter of the month. So July, August and September inflation are key to determining what the Social Security Administration’s COLA will be in the coming year 2025. And until then there will be no increase in retirement benefits. Other types of benefits may have increases, such as Supplemental Security Income, but that increase is for other reasons and always on an individual basis.
When will the Social Security Administration’s COLA 2025 take effect?
Starting in January 2025 we will see an increase in Social Security Administration checks. This is true every year, although the COLA may come a few days earlier than 2025 due to an irregularity in the calendar. But either way, even if the payment arrives early it still belongs on the 2025 payment schedule.
This payment will be the January Supplemental Security Income. This payment will appear in the checking account of thousands of Americans on December 29, 2024. But that will only be an exception and will still be part of next year’s schedule. Likewise, all other January payments will also have the COLA 2025.
In short, until the 2025 payment schedule begins, we may not see a new COLA. Any increases in 2024 benefits are in reference to the prior years check. We will have to wait until October to find out what the final COLA will be.