Big Day For Retirees- Social Security Payments Arrive Tomorrow With 2025 COLA Increase – Are You Eligible?
Millions of Americans are set to receive their Social Security payments on Wednesday, May 21, 2025, with a 2.5% Cost-of-Living Adjustment (COLA) boosting monthly benefits.
This adjustment aims to help beneficiaries keep pace with inflation and rising living costs.
Who Will Receive a Payment on May 21?
The Social Security Administration (SSA) issues payments based on beneficiaries’ birth dates:
- May 14: Recipients born between the 1st and 10th of any month.
- May 21: Recipients born between the 11th and 20th of any month.
- May 28: Recipients born between the 21st and 31st of any month.
Additionally, individuals who began receiving benefits before May 1997 typically receive payments on the 3rd of each month, regardless of their birth date.
Those receiving both Supplemental Security Income (SSI) and other Social Security benefits usually get SSI on the 1st and other benefits on the 3rd.
Understanding the 2025 COLA Increase
The 2.5% COLA for 2025 is designed to offset inflation, ensuring that Social Security benefits maintain their purchasing power.
This adjustment affects over 72.5 million beneficiaries, including retirees, disabled individuals, and SSI recipients.
How Much Will You Receive?
The COLA increase translates to higher monthly payments across various beneficiary categories:
| Beneficiary Category | 2024 Average Monthly Benefit | 2025 Average Monthly Benefit |
|---|---|---|
| All Retired Workers | $1,927 | $1,976 |
| Aged Couple (Both Receiving Benefits) | $3,014 | $3,089 |
| Disabled Workers | $1,542 | $1,580 |
| SSI Recipients (Individual) | $943 | $967 |
| SSI Recipients (Couple) | $1,415 | $1,450 |
The maximum monthly benefit for someone retiring at age 70 in 2025 is $5,108, up from $4,873 in 2024.
Key Changes in 2025
- Earnings Limits: For beneficiaries under full retirement age, the annual earnings limit is $23,400. Earnings above this threshold may reduce benefits.
- Taxable Maximum: The maximum amount of earnings subject to Social Security tax has increased to $176,100.
- Full Retirement Age: For individuals born in 1960 or later, the full retirement age is now 67.
Social Security payments scheduled for May 21, 2025, will reflect a 2.5% COLA increase, benefiting millions of Americans.
Eligible recipients can expect higher monthly checks, with the average retirement benefit rising to $1,976 and maximum benefits reaching up to $5,108.
FAQs
How is the COLA determined?
The COLA is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). If the CPI-W increases, Social Security benefits are adjusted accordingly to maintain purchasing power.
When will the next COLA be announced?
The SSA typically announces the COLA for the upcoming year in October, based on third-quarter CPI-W data.
Can I receive both SSI and Social Security benefits?
Yes, individuals can receive both SSI and Social Security benefits if they meet the eligibility criteria for both programs. SSI is need-based, while Social Security benefits are based on work history.