A MAJOR Social Security change is coming in just weeks after select recipients received their final payment of $943.
The annual update comes from the Social Security Administration (SSA) and affects those who benefit from one of its programs.
Some Social Security recipients have only days before their check amounts are updated (stock image)[/caption]
The payment increase comes due to the schedule set by the Social Security Administration (stock image)[/caption]
Around 72.5 million Americans depend on the SSA’s portfolio of programs, especially Supplemental Security Income (SSI).
SSI assists those with limited access to income and resources who have disabilities at any age or who are 65 and older.
Eligible candidates who fall into those categories must also have less than $2,000 in assets as an individual or $3,000 as a couple to benefit from SSI funds.
Money from the SSI program is sent out every month through a check or direct deposit, and the amount is updated every year through the cost-of-living adjustment (COLA).
The COLA is determined by the SSA in October based on inflation rates and economic trends in the United States.
A 2.5% increase was announced on October 10, 2024, for the 2025 tax year, the lowest in four years.
PAY UP
That means SSI recipients will receive an average payout amount of $967 each month in 2025, up from $943 this year.
Again, these are the averages, and amounts will vary depending on variables personal to each recipient, like income, assets, and more.
The 2.5% increase will still apply no matter what.
SSI recipients can see when they will get their monthly distributions through a schedule on the administration’s website.
A final payment of $943 already went out on November 29, Black Friday.
Typically, SSI payments are always sent out on the first day of each month.
So, why was there a distribution on the 29th?
DATE DYNAMICS
There are exceptions when a date falls on a weekend or federal holiday, making November and December complicated this year.
What are the different Social Security payments?
Social Security provides a source of income when you retire or if you cannot work due to a disability.
There are four main types of Social Security benefits:
- Retirement – a monthly check that replaces part of your income when you reduce your hours or stop working altogether.
- Social Security Disability Insurance (SSDI) or “disability” provides monthly payments to people who have a disability that stops or limits their ability to work.
- Supplemental Security Income (SSI) – provides monthly payments to people with disabilities and older adults who have little or no income or resources.
- Survivor benefits – monthly payments to eligible family members of people who worked and paid Social Security taxes before they died.
November 1 fell on a Friday, so there was a $943 payment then, but December 1 arrived on Sunday, making the nearest weekday November 29.
That’s because the Black Friday distribution represents funds for December.
Still, the SSA calendar shows another distribution for December 31, which is the first going out for January 2025, as the 1st is New Year’s Day — a federal holiday.
Given that it’s for next year, the COLA increase also applies, making the payment worth $967 instead of $941.
Recipients can use the calendar to make sense of other awkward dates coming up in 2025, like in February and March, given the Leap Year.
There are more recent updates from the SSA that Americans should remain aware of.
Thousands of Social Security recipients are also at risk of not getting benefits in one US state.
The SSA also issued a grim warning earlier this month about a potential “funding freeze” and “50-year low.”
