In November, some Americans will receive two Social Security payments due to a scheduling quirk. Normally, the Social Security Administration (SSA) distributes payments on the second, third, and fourth Wednesdays of each month for retirement benefits, and Supplemental Security Income (SSI) is paid on the first of the month.
However, when the first of the month falls on a weekend or holiday, payments are moved earlier. In 2023, December 1st lands on a Sunday, so SSI beneficiaries will receive their December payment a day early, on Friday, November 29th. Along with their regular payment on November 1st, this means two SSI payments will be sent out in November.
This doesn’t mean beneficiaries will get extra money; it’s just an advance on December’s payment. About 7.4 million Americans rely on SSI, which provides financial support to disabled individuals and low-income seniors.
Social Security Cost-of-Living Adjustment (COLA) for 2025
In addition to the November payment adjustment, Social Security recipients were recently informed of the cost-of-living adjustment (COLA) for 2025. The COLA for 2025 is set at 2.5%, marking a smaller increase compared to the 3.2% adjustment in 2024. Despite the lower increase, the SSA expects that this will still provide some financial relief to beneficiaries. On average, retirement benefits will increase by about $50 per month starting in January 2025.
The COLA is determined by the Consumer Price Index (CPI) and is designed to help Social Security payments keep up with inflation. However, as inflation has moderated in the past year, the size of the adjustment has decreased. The 2025 COLA is closer to the historical average of 2.6%, a sharp contrast from the 8.7% adjustment beneficiaries saw in 2023, which was driven by record-high inflation peaking at 9.1% in June 2022.
Impact of COLA on Retirees
While the upcoming 2.5% increase will provide a modest boost to retirees, many older Americans still face financial challenges. AARP CEO Jo Ann Jenkins noted that while the COLA adjustment helps, inflation continues to impact retirees, especially those heavily dependent on Social Security as a primary income source. Basic expenses like food and fuel have stretched many Americans’ budgets, making the yearly adjustment essential, though often insufficient to fully offset rising costs.
The SSA estimates that over 70 million Americans benefit from Social Security payments, including retirees, disabled workers, and their families. Although inflation is no longer as severe as it was in 2022, prices for essential goods and services remain elevated, underscoring the importance of even modest increases like the one scheduled for 2025.
Understanding the Payment Schedule
For those unfamiliar with Social Security’s payment schedule, it is based on the recipient’s date of birth:
- Payments are sent on the second Wednesday if your birthday falls between the 1st and 10th of the month.
- Payments are sent on the third Wednesday if your birthday is between the 11th and 20th.
- Payments are sent on the fourth Wednesday if your birthday is between the 21st and the 31st.
Supplemental Security Income, which is separate from Social Security retirement benefits, follows a different schedule and is usually delivered on the first of the month, unless it falls on a weekend or holiday.
Future Outlook for Social Security Benefits
The size of future COLA adjustments will largely depend on inflation trends. If inflation remains moderate, as it has in recent months, Social Security recipients should expect COLAs closer to the historical norm of 2-3%. However, if inflation spikes again, as it did in 2022, future adjustments could be larger to help recipients keep pace with rising prices.
For many Americans, particularly retirees and disabled individuals, Social Security is a financial lifeline. While the upcoming 2.5% adjustment for 2025 may seem small compared to recent years, it plays an essential role in helping millions of beneficiaries maintain their purchasing power amidst ongoing economic challenges.
FAQs
1. Will Social Security recipients receive two payments in November?
Yes, but only Supplemental Security Income (SSI) recipients. The second payment in November is an advance for December, as Dec. 1 falls on a Sunday.
2. Does the second November payment mean extra money?
No, the second payment is not extra. It is an early payment for December due to the weekend date shift.
3. How much is the 2025 Social Security COLA?
The 2025 COLA is set at 2.5%, resulting in an average increase of about $50 per month for Social Security retirement benefits.
