Mark your calendar: 3 2025 Social Security cost of living adjustment (COLA) dates you should know

We're just weeks away from finally learning what Social Security's cost of living adjustment (COLA) will look like in 2025. Current projections put it at around 2.5%, less than the 3.2% that beneficiaries received this year. But that could change a little.

Much of the attention was focused on the announcement date itself. But there are also two other important dates related to COLA 2025 to note.

1. Oct. 10: The Social Security Administration will announce the 2025 COLA

The Social Security Administration will officially announce the 2025 COLA on October 10th. Then we get the final information we need to calculate it – the September 2024 Consumer Price Index for Urban Wage Earners and Office Workers (CPI). W) Figure. The government will average this with July and August data and compare it to the average data for the third quarter of 2023. The difference will be the COLA.

Technically, the COLA is not applied directly to your checks. The government applies it to your primary insurance amount (PIA). This is the benefit you would be entitled to if you filed for Social Security at full retirement age (FRA). If you then applied at a different time, your benefit will be adjusted up or down to calculate your new 2025 payment amount.

However, you can get a pretty good estimate of your 2025 benefit by adding the COLA percentage to your current checks. For example, if the COLA is 2.5% and you currently receive $2,000 per month, you would add another 2.5%, or $50 per month, to your checks in 2025.

December 2, 2024: Beneficiaries receive personalized COLA notifications

In early December, the Social Security Administration will send personalized notices to all Social Security recipients detailing how much they will receive in 2025. If you have created a My Social Security account by mid-November, you will be able to view your COLA notification through your Message Center. You can also sign up for an email or SMS alert so you know when the alert is available.

The Social Security Administration will also be sending COLA notices throughout December. However, it takes time to send these notices to millions of benefit recipients. Therefore, the Social Security Administration asks that you not contact them about missing COLA notices until January 2025.

3. 8/15/22, 2025: The first checks go out with the 2025 COLA included

Technically, the Social Security Administration will apply the 2025 COLA to your December 2024 payment. However, because you don't receive Social Security checks until a month after they're due, you won't receive your first COLA payment until January 2025.

The exact date depends on the day of the month you were born, as follows:

• Born on the 1st to 10th of a month: January 8, 2025
• Born on the 11th to 20th of a month: January 15, 2025
• Born on the 21st to 31st of a month: January 22, 2025

Depending on their date of birth, beneficiaries will continue to receive payments on either the second, third or fourth Wednesday of each month.

Those receiving Supplemental Security Income (SSI) will see an expansion of these checks even sooner. These benefits are usually paid out on the first of the month. However, since January 1, 2025 is a holiday, these checks will be issued on December 31, 2024.

Once you know how much you'll receive from Social Security (and possibly SSI) in 2025, you can start planning your budget for next year. If you have questions about how the COLA affects your checks, you can contact the Social Security Administration. But consider waiting until you receive your COLA notice in December, as that could answer a lot of questions.