New $1,968 Social Security Checks For Retirees – Here Are The 2025 Payment Dates

When the Social Security Administration (SSA) announced the 2025 cost-of-living adjustment (COLA) of 2.5% on October 10, it sparked concern among many beneficiaries. While the adjustment reflects a cooling inflation rate, the modest increase has left many retirees wondering how far their checks will stretch in the new year.

Let’s break down the impact of the 2025 COLA, what it means for retirees, and what steps you can take if the increase isn’t enough to meet rising costs.

Increase

No two beneficiaries have identical Social Security checks, as amounts depend on individual earnings history. However, every recipient benefits from the same 2.5% COLA increase, whether they receive retirement, disability, or survivor benefits.

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For context, the average Social Security check for retired workers in 2024 is approximately $1,920 per month. Applying the 2.5% adjustment, the average beneficiary will see an increase of about $48, bringing their monthly payment to $1,968.

Those who receive more than the average check will see a larger increase, while those earning less will see a smaller one. To calculate your specific increase, simply multiply your current monthly benefit by 1.025.

Calculation

Benefit Amount (2024)	Increase (2.5%)	New Benefit (2025)
$1,920	$48	$1,968
$2,500	$62.50	$2,562.50
$3,000	$75	$3,075

While the increase provides some additional income, rising Medicare Part B premiums—expected to go up by $10—may reduce the net impact, leaving many retirees with less breathing room than anticipated.

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Financial Shortfalls

If the COLA isn’t enough to cover expenses, retirees may need to explore alternatives to stretch their finances.

Impact

With Medicare premiums rising, many beneficiaries will see part of their COLA increase absorbed by healthcare costs. For instance, after accounting for the premium hike, the average retiree’s $48 increase shrinks to just $38—a modest gain that might not match the rising costs of food, utilities, or housing.

COLA

The COLA is calculated using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which focuses on younger, urban workers’ expenses. Advocates for seniors argue that the CPI-E—an index tailored to those aged 62 and older—would better reflect retirees’ needs, such as healthcare costs. However, changes to this calculation method remain unlikely in the near term.

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Strategies

If your Social Security check isn’t enough, here are some options to consider:

• Dip into savings cautiously: Use retirement accounts or savings as a last resort but maintain a safety net for emergencies.
• Seek part-time work: A part-time job can boost income while providing social interaction and healthcare benefits.
• Cut non-essential expenses: Trim discretionary spending to free up funds for essentials.

Increased Payments

Beneficiaries will see the 2.5% COLA reflected in their checks beginning in January 2025. The schedule varies depending on your birthdate:

• December 31, 2024: Supplemental Security Income (SSI) recipients.
• January 3, 2025: Beneficiaries who started receiving Social Security before May 1997 or those receiving both Social Security and SSI.
• January 8, 2025: Birth dates between the 1st and 10th of the month.
• January 15, 2025: Birth dates between the 11th and 20th of the month.
• January 22, 2025: Birth dates between the 21st and 31st of the month.

Moving Forward

While the 2025 COLA provides a small financial boost, it may fall short of addressing rising costs for many retirees. By staying informed and investigating options to supplement income or reduce expenses, beneficiaries can better navigate these financial challenges.

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