October 2024 is an important month for recipients of Supplemental Security Income (SSI), Social Security Disability Insurance (SSDI), and retirement benefits. The Social Security Administration (SSA) has confirmed the payment dates for October, while beneficiaries also await news of the 2025 Cost-of-Living Adjustment (COLA) increase. Here’s what to expect and how the changes will impact your payments.
Payment Dates
For Supplemental Security Income (SSI) recipients, the next payment is scheduled for October 1, 2024. This will be the only payday for SSI beneficiaries in October, and the maximum payment amounts will be $943 for individuals and $1,415 for married couples.
Social Security retirement and SSDI beneficiaries will receive their payments on staggered dates based on their birthdays:
- October 3: For those who were on Social Security before May 1997 or who receive both SSI and SSDI/retirement benefits.
- October 9: For beneficiaries with birthdays between the 1st and 10th of the month.
- October 16: For beneficiaries with birthdays between the 11th and 20th of the month.
- October 23: For beneficiaries with birthdays between the 21st and 31st of the month.
These scheduled payments ensure a smooth distribution of funds for millions of Americans who depend on Social Security benefits.
Increase Announcement
On October 10, 2024, the SSA will announce the 2025 COLA increase. While past years have seen higher adjustments, projections suggest a more modest increase this time around, likely around 2.5%. This reflects the cooling of inflation in recent months. Despite the smaller increase, the COLA remains crucial for ensuring Social Security beneficiaries maintain their purchasing power in the face of rising costs of goods and services.
2024 COLA Impact
Starting in January 2024, Social Security beneficiaries will see a 3.2% COLA increase applied to their payments. SSI recipients will receive their adjusted payments earlier, beginning on December 29, 2023.
For the average retired worker receiving approximately $1,920 per month in August 2024, this COLA will result in a $61 increase, bringing their monthly benefit to about $1,981. Similarly, average survivor benefits of $1,509 will rise by roughly $48, and average SSDI payments of $1,540 will go up by about $49.
While this increase will provide financial relief, it’s important to note that some of the COLA boost may be offset by rising Medicare Part B premiums, which are deducted from most Social Security payments. The exact amount of the Medicare premium increase will be announced in late 2024, and any rise in premiums will reduce the net increase in benefits for many recipients.
| Benefit Category | Current Amount | COLA Increase | New Amount |
|---|---|---|---|
| Retired Worker (Avg) | $1,920 | $61 | $1,981 |
| Survivor Benefits (Avg) | $1,509 | $48 | $1,557 |
| SSDI (Avg) | $1,540 | $49 | $1,589 |
COLA’s Role
The Cost-of-Living Adjustment (COLA) is designed to help Social Security benefits keep up with inflation. By increasing payments based on changes in the Consumer Price Index (CPI), COLA adjustments help protect seniors and others who depend on Social Security from losing purchasing power as the cost of living rises. Although inflation has cooled recently, COLA ensures that benefits grow in line with the economy’s overall cost increases over time.
SSDI Eligibility
To qualify for Social Security retirement or disability benefits, you need to earn a minimum number of work credits over your lifetime. This requirement ensures that only individuals who have contributed to the Social Security system through payroll taxes can receive benefits. Additionally, it’s important to remain compliant with SSA rules to continue receiving benefits, particularly if you’re a disability recipient, where work limitations apply.
Medicare Premiums
In 2024, the maximum amount of earnings subject to Social Security tax will rise to $168,600. Workers under full retirement age will also face an earnings limit of $22,320, with $1 deducted from their benefits for every $2 earned over this limit. These changes are intended to keep the Social Security system funded while ensuring that higher earners contribute their fair share.
Future Payments
With payment dates set and the 2025 COLA increase announcement around the corner, it’s important for Social Security beneficiaries to plan ahead. For retirees and SSDI recipients, addressing your specific payment schedule will help ensure you know when your money is arriving. Staying informed about potential Medicare premium increases and tax changes can also help you manage your finances effectively. For those receiving both SSI and other benefits, be sure to plan for the early COLA adjustments that begin in late December.
Though the upcoming COLA increase may be smaller than in previous years, it still plays a critical role in helping millions of Americans stay afloat as the cost of living rises. By staying informed and managing your finances carefully, you can make the most of the changes ahead.
FAQs
When will the SSA announce the 2025 COLA increase?
The SSA will announce the 2025 COLA increase on October 10, 2024.
What is the maximum SSI payment in October 2024?
The maximum SSI payment is $943 for individuals and $1,415 for couples.
When will retirees receive their Social Security payments in October?
Retirees will receive payments on October 3, 9, 16, or 23, based on their birthdate.
How much will the 2024 COLA increase Social Security benefits?
The 2024 COLA will increase benefits by 3.2%, or about $61 for the average retiree.
Will Medicare premiums reduce the COLA increase?
Yes, rising Medicare premiums may offset some of the COLA increase.
