Social Security COLA increase showing up in December payment instead of January - is this normal?
I'm a bit confused about my Social Security payment schedule and the COLA increase timing. I started receiving my retirement benefits in May of 2024 when I was 64 (took it early). My January 2025 deposit (which I understand is for December 2024) suddenly went up by about $75. I was expecting the COLA increase wouldn't show up until the February payment (for January 2025). Did anyone else notice this? Is this how it normally works? I thought COLA increases were applied starting with January benefits. I have taxes withheld from my SS checks if that makes any difference. Just want to make sure there wasn't some kind of mistake that might need to be corrected later.
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QuantumQuasar
The COLA increase actually takes effect with December benefits, which are paid in January. So what you're seeing is exactly right! The Social Security COLA for 2025 is being applied to your December 2024 benefit that was paid in January 2025. It's confusing because people often say "COLA starts in January" but they really mean "January payments" which are for December benefits. Hope that makes sense!
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Andre Dupont
•Thank you so much! That's a relief to hear. I was worried there might have been some kind of error that would get corrected later with a reduction. So I guess when they announce the COLA increase each October, it actually takes effect with the December benefit payment that arrives in January?
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Zoe Papanikolaou
yep this is normal happens every year... the COLA hits in dec payment which u get in jan... confusing i know lol
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Andre Dupont
•Thanks for confirming! I'm still getting used to all these Social Security timing quirks since I just started last year.
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Jamal Wilson
Yes, this is exactly correct. The cost-of-living adjustment (COLA) for Social Security benefits applies to benefits payable for December, which are received in January. This has been the pattern since 1983 when the payment schedule was changed. So if you received an increase in your January deposit, that's your COLA increase being applied to your December benefit. There's nothing unusual happening with your benefits. Also, the amount of taxes withheld might have changed slightly too, based on the new benefit amount, which could affect the net deposit you received.
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Mei Lin
•But wait I'm confused. I JUST applied for SS retirement last month and won't get my first payment until February. Will I still get the COLA increase or did I miss it because I wasn't on benefits in December??
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Liam Fitzgerald
I had the exact same question last year! Here's what I learned: the COLA applies to December benefits (paid in January). Social Security announces the COLA in October, then it takes effect with December benefits. Just to make sure you're aware - the COLA for 2025 is 3.2%, so that $75 increase seems about right depending on your benefit amount. If your monthly benefit was around $2,300, then a 3.2% increase would be approximately $74. Also, if you're still working while collecting Social Security before your Full Retirement Age (FRA), remember that the earnings limit went up slightly with the new year too.
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Andre Dupont
•Thank you for that detailed explanation! Yes, my benefit is right around $2,350 so that math checks out perfectly. And good reminder about the earnings limit - I am working part-time and staying under the limit, but I need to check what the new 2025 limit is.
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Amara Nnamani
My deposit when up too but I don't think it was a full 3.2%. Is anyone else getting shortchanged on their COLA? I swear the SSA always finds a way to give us less than promised!!!
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Jamal Wilson
•The 3.2% COLA is applied to your base benefit amount (PIA), but what you actually receive can be affected by Medicare premiums and tax withholding. If you have Medicare Part B, the premium increased from $174.70 to $185.50 in 2025, which would reduce your net increase. Also, if you have taxes withheld, the withholding would be calculated on the new higher amount, further affecting what you see deposited.
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Mei Lin
My sister in law told me that the SSA sometimes makes mistakes with the COLA and then takes back money later in the year!! Do we need to double-check their math or something? I don't want to spend this extra money if they're gonna ask for it back!!
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QuantumQuasar
•I've never heard of SSA routinely making COLA calculation errors that they later reclaim. The COLA calculation is pretty straightforward - they just multiply your benefit by the COLA percentage. If you're concerned, you can check your mySocialSecurity account online which should show your new benefit amount, or call the SSA directly to confirm. But I wouldn't worry about them asking for the increase back.
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Giovanni Mancini
Speaking of calling SSA - if anyone needs to talk to an actual human at Social Security, I recently used a service called Claimyr that got me through to a rep in under 10 minutes instead of waiting on hold for hours. I was trying to understand my COLA increase last month since mine seemed off, and the SSA rep was able to explain exactly how it was calculated. Saved me so much time! They have a video demo at https://youtu.be/Z-BRbJw3puU that shows how it works. Their website is claimyr.com - definitely worth it when you need answers quickly.
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Mei Lin
•Omg THANK YOU! I've been trying to get through to SSA for days about my application status and keep getting disconnected after waiting forever. Definitely going to try this!
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Amara Nnamani
•Does it actually work? I've tried calling SSA like 20 times this month and either get disconnected or told to call back later. Their phone system is THE WORST.
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Giovanni Mancini
•@profile6 Yes, it definitely works! I was skeptical too but was desperate after trying for a week to get through. The system calls SSA for you and navigates the phone tree, then calls you once they have an agent on the line. I was able to talk directly with an SSA representative about my COLA calculation questions and got everything sorted out in one call.
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Jamal Wilson
Just to address the question from @profile7 above: If you're just starting Social Security benefits now, you'll still receive the current COLA rate on your benefits going forward. You didn't "miss" the COLA by not being on benefits in December. The COLA is already built into the benefit rates for 2025. Your initial benefit calculation will include the 2025 COLA. For everyone: Remember that the COLA is applied to your primary insurance amount (PIA), which is your basic benefit before reductions for early retirement or increases for delayed retirement. So the actual percentage increase in your check might not be exactly 3.2% if you're receiving reduced or increased benefits.
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Mei Lin
•Oh that's such a relief! Thank you for explaining this. I was worried I'd be stuck with the 2024 rate for a whole year.
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Zoe Papanikolaou
my mom said back in the day COLA used to be way bigger like 5-8% every year... we really getting the short end now with these tiny increases while everything costs way more smh
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Liam Fitzgerald
•Your mom is right that COLAs were much higher in the late 1970s and early 1980s - there was an 11.2% increase in 1981 and a 14.3% increase in 1980! But those were times of much higher inflation. The COLA is designed to match inflation as measured by the CPI-W (Consumer Price Index for Urban Wage Earners and Clerical Workers). So while the increases may seem small, they're supposed to be keeping pace with inflation.
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