Many Americans are surprised to learn that Social Security payments slated until the end of 2024 will include some vital news. Although all payouts are for the current year, some will include the 2025 cost-of-living adjustment (COLA).
This annual adjustment, meant to balance inflation, allows beneficiaries to preserve their purchasing power while prices rise. As a result, it is normal to get this rise in the corresponding year, 2025, rather than the previous year.
One of the most important payments in this regard will be Supplemental Security Income (SSI), which will be issued on December 31, 2024. As previously stated, this payment will be delivered in 2024, but with the established increment.
The primary goal of everything related to this SSI benefit advance is to keep residents from not receiving their monthly benefit on time, so some of them may receive it even sooner.
Who gets Social Security with Cost of Living in December 2024?
The 2025 cost-of-living adjustment (COLA) will be applied to Supplemental Security Income (SSI) beneficiaries who are scheduled to collect on December 31, 2024. Because January 1 is a federal holiday, the Social Security Administration is issuing this advance to ensure the payment arrives on time. As a result, beneficiaries will get the new adjusted amount just before the end of the year.
Supplemental Security Income is primarily intended at seniors over the age of 65, those with disabilities or blindness, and children who meet the stated criteria. This service is essential for people with little income and resources. Finally, the objective of SSI is to assist people who are most in need.
As a result, advancing the payment with the COLA guarantees that these beneficiaries may better afford basic needs at the end of the year, when things can be difficult in some homes. Similarly, it is true that this benefit will be paid no later than the beginning of January. Finally, no American will have to wait too long.
On the other hand, the 2025 COLA has been set at 2.5%, indicating that payments will rise considerably. For example, a recipient who receives the maximum amount of $943 in 2024 can anticipate an increase in his or her check to $967 in January 2025.
While the increase may appear insignificant, it has a good impact by providing additional cushion to cover daily expenses, particularly for those with modest resources. Still, in this situation, we’re talking about the maximum check, which not all Americans can obtain.
This COLA advance also helps beneficiaries plan their finances as they approach the new year, which can be a tough time for many Americans. With the rise beginning in December, it is easier to budget and ensure a smoother financial transition.
Of course, all of this makes sense if we’ve enabled Direct Deposit. This form of collection is immediate, therefore the SSI payment will arrive in the checking account without having to wait. Those who have not engaged Direct Deposit will have to wait a few days, but the money will arrive in their current account within three days at most.
Also See:- How would a U.S. government shutdown affect Social Security pensions?