As 2024 draws to a close, Social Security Administration (SSA) pensioners prepare to receive their final payouts of the year. With November underway, only three distributions of up to $900 left before recipients receive a Cost-of-Living Adjustment (COLA) boost in January 2025.
This adjustment, projected to be around 2.5%, provides some relief from inflation for people who rely on Social Security. The SSA has scheduled these last payments, and while they may appear ordinary, there are several distinguishing features to note.
Social Security payments in November and December
The SSA follows a set calendar for Social Security payments, with the first of each month being particularly important for those receiving Supplemental Security Income (SSI) benefits.
The SSI program, which has approximately 7.5 million registrants, is intended to help people with impairments, blindness, or restricted income. SSI payments are typically issued on the first of each month, but December 2024 marks an exception to this rule.
In November, SSI members will get two payments. The first was delivered on November 1 and costs up to $900, while the second will arrive on November 29. Why make two payments in one month? This second check, for up to $900, is an advance on the December payment because December 1 is a non-business day.
By changing the payment to November 29, the SSA assures that SSI beneficiaries do not have any delays in getting their payments over the holiday season in December.
How SSI and Social Security payments are funded
Understanding the financial discrepancies between the SSI and Social Security systems is critical. Although both are overseen by the Social Security Administration, they are funded differently. SSI is supported by the United States Department of Treasury, with some states providing additional assistance to their inhabitants. In contrast, Social Security retirement payments are funded by income taxes paid by all employees in the country.
Simply put, SSI is a Treasury-financed assistance program, whereas Social Security retirement and disability benefits are paid via employee and company contributions. This distinction explains why the SSI payment schedule may occasionally require further adjustments, such as advancing payments that fall on weekends or holidays.
When does the Cost-of-Living Adjustment take effect?
For those who rely on Social Security, the new year will bring a 2.5% rise in payouts due to the COLA. This adjustment is calculated each year to account for increased living costs, allowing beneficiaries to keep their purchasing power despite inflation. However, the final payments for 2024 will be the customary levels, with the change taking effect only in January 2025.
This rise will help both Social Security seniors and those participating in other SSA-managed programs, such as SSI. As a result, individuals who rely on these benefits will experience a small but welcome boost to their personal income in the next year.
How are SSI and Social Security payments distributed?
The SSA uses a structured system to distribute SSI and Social Security benefits. When the first of the month occurs on a weekend or holiday, SSI members are often paid in advance for December monies on November 29. These changes are intended to guarantee that beneficiaries receive their payments without any needless delays.
Social Security retirement payments, on the other hand, are distributed at various periods throughout the month depending on the recipient’s date of birth.
Those born in the first ten days of the month receive payments in the second week, while those born in the second or third ten days receive them later. This staggered system enables the SSA to manage finances more efficiently and ensures that payments are dispersed in an orderly fashion.
Final details on the last Social Security payments of 2024
With these last three payments, the SSA will complete its 2024 payment schedule. In summary, beneficiaries will receive:
- okA first SSI payment on November 1, up to $900.
- A second SSI payment on November 29, corresponding to the December payment.
- A final payment in December for retirement beneficiaries, with checks arriving based on each person’s birth date.
To stay informed about these payments and future adjustments, beneficiaries can check the SSA’s website, where the schedule and any relevant changes are updated annually.
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