The holiday season brings with it some changes to Social Security payments, as the schedule adjusts for weekends and public holidays. December also marks the implementation of the 2025 cost-of-living adjustment (COLA), which will increase benefits for many recipients in the coming year. Here’s what you need to know about the adjustments this month, the COLA increase, and the outlook for Social Security in 2025.
Payment Schedule
Social Security payment schedules often shift in December due to the holidays, creating some deviations from the regular routine. Here’s how payments are being adjusted this month:
- Supplementary Security Income (SSI) Payments: Normally, SSI payments are made on the first of the month. However, since December 1 fell on a weekend this year, beneficiaries received their December payment early, in November.
- December 31 “Bonus” Payment: Because January 1, 2025, is a federal holiday, SSI beneficiaries will receive their January payment a day early, on December 31. While it might feel like a bonus payment, it is actually the first payment for 2025.
For those who receive both Social Security and SSI benefits, your first Social Security payment for 2025 will still arrive on January 3, 2025, separate from the early SSI payment.
Payment Dates
If you’re unsure about when to expect your payments, here’s a quick guide to the remaining schedule:
| Date | Payment |
|---|---|
| Dec. 31 | SSI recipients will receive their January 2025 payment, reflecting the new COLA increase. |
| Jan. 3 | Social Security recipients who claimed benefits before May 1997 or who receive both Social Security and SSI will receive their first 2025 payment. |
| Jan. 8 | Beneficiaries born between the 1st and 10th of the month will receive their first 2025 Social Security payment with the updated COLA. |
| Jan. 15 | Those born between the 11th and 20th will see their updated COLA in this payment. |
| Jan. 22 | Recipients born between the 21st and 31st will receive their first COLA-adjusted payment on this date. |
By keeping track of these dates, you can plan your finances around the changes to the schedule.
Social Security
In 2025, Social Security benefits will increase by 2.5% due to the cost-of-living adjustment (COLA). This adjustment is calculated based on the Consumer Price Index for Wage Earners and Urban Employees (CPI-W) from the third quarter of 2023 through the third quarter of 2024.
The COLA ensures that Social Security payments keep pace with inflation, helping beneficiaries maintain their purchasing power amid rising costs. This increase applies to all Social Security benefits, including retirement, disability, and Supplementary Security Income (SSI) payments.
Future
As the Trump administration prepares to take office for a second term, concerns about Social Security’s long-term solvency have resurfaced. Currently, the Social Security trust fund is projected to run out of reserves by 2030. While President-elect Trump has promised that no reductions will be made to beneficiary payments during his presidency, policymakers are investigating options to extend the fund’s longevity.
Options under discussion include reducing payments, raising the retirement age, or increasing Social Security tax rates. Without action, the depletion of the trust fund would mean that Social Security could only pay a portion of promised benefits, funded solely through ongoing payroll taxes.
Beneficiaries
It’s essential to understand that Social Security will not disappear if the trust fund is depleted. Payroll taxes will continue to provide funding for benefits, though payments may be reduced if Congress does not act to address the shortfall.
President Trump’s administration is expected to propose changes to safeguard the system’s future, but any reforms will require congressional approval. Beneficiaries should stay informed about potential changes and prepare for adjustments in the years ahead.
Significant
December brings not only changes to Social Security payment schedules but also the beginning of the 2025 cost-of-living adjustment, which will boost benefits for recipients. While these adjustments ensure timely payments during the holidays, the future of Social Security remains a topic of concern. As COLA increases help offset inflation, discussions about long-term solvency and potential reforms are expected to shape the program’s direction in the coming years.
FAQs
Why is there a December 31 SSI payment?
January 1 is a holiday, so the payment is sent early.
What is the COLA increase for 2025?
The COLA increase for 2025 is 2.5%.
When will I receive my COLA-adjusted Social Security payment?
Payment dates depend on your birth date, starting January 3.
Will Social Security end if the trust fund is depleted?
No, payroll taxes will still fund partial benefits.
What changes might be made to Social Security?
Potential reforms include raising taxes or adjusting benefits.