Latest news with #Cost-of-LivingAdjustment
Hindustan Times
02-05-2025
- Business
- Hindustan Times
SSI beneficiaries to receive two payments in May 2025, none in June—Here's why
Millions of Americans receiving Supplemental Security Income (SSI) will see two deposits in May 2025 instead of the usual one. The US Social Security Administration (SSA) has confirmed that SSI beneficiaries will be paid on both May 1 and May 30, due to a calendar adjustment caused by June 1 falling on a Sunday, as reported by USA Today. Also read: Social Security May payment: Here's why SSI recipients will see two deposits in the same month While this may appear as a bonus or a special stimulus, the second May payment is actually the advance deposit for June. This long-standing SSA practice ensures that recipients are not left waiting if a scheduled payment date falls on a weekend or federal holiday, as reported by CNET. This means there will be no SSI payment in June, so beneficiaries are encouraged to budget carefully. The increased monthly benefit—$967 for individuals and $1,450 for eligible couples—reflects the 2025 Cost-of-Living Adjustment (COLA) of 2.5%, helping recipients cope with rising expenses and inflation. *May 1 – Regular monthly SSI payment *May 3 – Social Security payments for those receiving both SSI and Social Security *May 8 – Social Security payments for individuals with birthdays between the 1st and 10th *May 15 – Social Security payments for birthdays between the 11th and 20th *May 22 – Social Security payments for birthdays between the 21st and 31st *May 30 – Early SSI payment for June These payment dates include both SSI and Social Security distributions. Those receiving multiple benefits may see deposits on more than one date. With two SSI deposits landing in May, it's crucial for recipients to budget the second payment to last through June, as there will be no deposit that month. Recipients are also advised to keep track of the schedule and monitor their bank accounts to ensure payments arrive as expected. Direct deposit continues to be the safest and most efficient method for receiving payments. For those relying on mailed checks, delivery may take longer and should be accounted for when planning monthly finances. Also read: IRS tax refund schedule: Will your deposit arrive this week? Find out This dual-payment month is a normal occurrence within the SSA's system, not an anomaly or mistake. However, it serves as a timely reminder of the importance of financial awareness—especially for seniors, people with disabilities, and others who depend on fixed monthly income. For millions across the United States, the SSI program is a lifeline. Understanding the timing and structure of these payments is key to navigating the months ahead with financial stability.
Yahoo
22-02-2025
- Business
- Yahoo
Social Security checks have lost 20% of their buying power since 2010 — here's how much it's costing US retirees
Each year, the Social Security Administration (SSA) adjusts the amount of money that recipients receive in benefits, helping to account for factors such as inflation. Ideally, the adjustments give the 68 million Social Security benefit recipients more purchasing power during their retirement years. But according to a 2024 study from The Senior Citizens League, these benefit checks have actually lost significant buying power over the years. I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) A near-record number of Americans are grappling with $1,000 car payments and many drivers can't keep up. Here are 3 ways to stay ahead Protect your retirement savings with these 5 essential money moves — most of which you can complete in just minutes Here we'll take a look at the benefit amounts of past and present to see how this came to be. The SSA's annual adjustment to benefit payments is known as the Cost-of-Living Adjustment, or COLA. It was designed to safeguard the purchasing power of Social Security Income (SSI) benefits from decline due to inflation. In 2025, Social Security benefit checks will get a 2.5% bump thanks to the COLA. These adjustments can go higher, as we saw back in 2022 when Social Security benefit checks increased by 8.7% due to high-inflation rates following the COVID-19 pandemic. On paper, the annual COLA looks like a decent increase that gives retirees a larger Social Security check. And while that's true — the average monthly Social Security check in 2010 was $1,164, while the average check as of January, 2025, is $1,976 — COLA appears to have slowly fallen behind the rate of inflation over the years. As The Senior Citizens League's study notes, Social Security benefits have lost 20% of their buying power since 2010, which means monthly benefit checks today are worth 20% less than they were about 15 years ago. Read more: Home prices in America could fly through the roof in 2025 — here's the big reason why and how to take full advantage (with as little as $10) Though COLA is an attempt to ensure that Social Security checks match the pace of inflation, the adjustment often falls short. Take 2024, for example. While 2024's COLA added a 3.2% bump to benefit checks, the inflation rate sat at 3.4%. And then there's 2022, when the COLA boosted benefit checks by 5.9% despite an inflation rate that sat at 7%. A 1.1% difference may not seem like much, but the discrepancies between the rate of inflation, rising prices and COLA can be harmful to retirees, especially those who rely on benefit checks as a major chunk of retirement income. Consider the escalating costs of many of today's essentials. Expenses like transportation have gone up by a staggering 96.6% since 2010, while housing has risen by 81.2%. And then there's food and beverage, which rose by 56.7% in the last 15 years. In order to compensate for the Social Security benefit losing 20% of its value, retirees would need to earn $370 more per month, or $4,440 more per year. Without these compensating funds, retirees relying on Social Security alone will have a tough time safeguarding their finances from the sting of inflation. The first thing you should look into is maximizing your Social Security benefit. Your age at retirement — in relation to your full-retirement age — can have a big effect on the size of your benefit checks. For example, if you were to retire in 2025 at 62 years old, your maximum benefit would be $2,831 per month. But if you retired this year at 67, your max benefit would jump to $4,018. And if you were able to delay claiming your Social Security benefit and retire at 70, your max benefit would jump even higher to $5,108. If the Social Security benefit is losing some of its value, you may want to do your best to get the fattest benefit check that you can. For those nearing retirement who are still working, you may want to think about putting more money into investment accounts like an Individual Retirement Account (IRA) or a 401(k). Each year, the IRS updates its contribution limits for these investment accounts. With the Social Security benefit losing value, the more money you can save before retirement, the less you'll have to rely on Social Security in your golden years. For those who are already retired, taking on a part time job — if you're able to — could help stave off the effects of rising costs and a depreciating Social Security benefit. It's not ideal — after all, you ideally want to relax and enjoy your golden years — but it could help with expenses and keeping up with inflation. Jamie Dimon issues a warning about the US stock market — says prices are 'kind of inflated.' Crashproof your portfolio with these 3 rock-solid strategies This self-made $500M real estate mogul reveals his 'essential' US portfolio that he says Amazon 'can't hurt' — here's how everyday investors can copy his secret formula Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Sign in to access your portfolio
Yahoo
27-01-2025
- Business
- Yahoo
First Social Security payments of 2025 coming soon; what to know in NJ
Over 162,000 New Jerseyans who are low-income, blind or disabled and rely on payments from the Social Security Administration will see their first paychecks for 2025 this week — and they will include a slight increase in funds. The first round of paychecks for those who quality under the Supplemental Security Income (SSI) program will include a 2.5% increase due to the Cost-of-Living Adjustment (COLA), and while it's the smallest increase since 2021, CNBC reported, it'll still add a few extra bucks to the wallet. Here's what to know about when your payments will arrive and what to expect. Payments for the roughly 163,000 New Jersey residents who receive Supplemental Security Income will get their payments a day earlier than usual, on Jan. 31. Since Feb. 1 falls on a weekend, benefits are always paid out earlier rather than after the date expected. It will vary based off your income, type of disability and how many people live in our household. On average, a person getting $1,920 in monthly benefits this year can expect to see a roughly $48 increase, according to Mary Johnson, an independent analyst of the nation's Social Security and Medicare programs. The maximum monthly SSI benefit is $967 for an individual and $1,450 for a couple, compared to $943 and $1,415, respectively, in 2024. On average, expect roughly an extra $50 more in your pocket. If you haven't received your payment, the Social Security Administration recommends waiting three working days before contacting the government agency. Remember, weekends are not considered working days. To find out more about your benefits under social security, make sure to create a my Social Security account through the Social Security Administration's website. More information can also be found on the Social Security fact sheet, which explains all the changes made in 2025. Lori Comstock is a New Jersey-based journalist with the Mid-Atlantic Connect Team. This article originally appeared on Social Security checks expected this week; what to know in NJ
