If a person in the United States qualifies for Supplemental Security Income (SSI), they will get up to $943 a year. On the other hand, the COLA has gone up by 2.5%, but it won’t take effect until December 31, 2024.
After always being due on the first of the month, how is an SSI payment due on December 31? This is because January 1, 2025, is a holiday for the government. In 2024, retirees can get a check or direct deposit for up to $967.
Supplemental Security Income amounts on December 31 due to COLA
The amount of money you get after this boost will depend on how much you paid. So, if your Supplemental Security Income payment is $100 a month, you will only get an extra $2.50 after December 31.
That means:
- 5 extra dollars if your SSI check is worth $200
- 7.5 extra dollars if your check is worth $300
- 10 extra dollars if your check is worth $400
- 12.5 extra dollars if your check is worth $500
- 15 extra dollars if your check is worth $600
- 17.5 extra dollars if your check is worth $700
- 20 extra dollars if your check is worth $800
- 25 extra dollars if your check is worth $1,000
Who can receive more than $967 from their SSI payment on Dec. 31, 2024?
The most that these people can get from SSI is $1,450 a year if they are married and eligible. It was $1,415 before. This means that there will be an increase of $35 thanks to the 2025 COLA.
A person who is needed may also get Supplemental Security Income. But for these people, the most they can get is now $484, up from $472.
Just so you know, SSI can be for people who don’t make much money and don’t have many resources. Still, there is one more requirement besides being at least 65 years old, having a disability, or being blind. If your retirement or SSDI check is low, this will be a great way to make up the difference.
How often is the COLA calculated and when will future adjustments take effect?
The cost-of-living adjustment (COLA) for Social Security benefits is calculated annually and takes effect the following year. Here are the key points about the COLA calculation and timing:
- The COLA is based on the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of the previous year to the third quarter of the current year.
- If there is no increase in the CPI-W, there is no COLA for the next year.
- The COLA is announced each October and takes effect with the December benefits that are paid in January.
- For 2025, the COLA will be 2.5%. This increase will begin with benefits payable to Social Security beneficiaries in January 2025.
- Increased payments to SSI recipients will begin on December 31, 2024.
- COLA notices informing beneficiaries of their new benefit amount are typically mailed out in early December. Most beneficiaries can view their COLA notice online in early December, via their my Social Security account, before receiving it in the mail.