For about 70 million people in the U.S., the Social Security Administration (SSA) does more than run a program—it’s the paycheck they can’t afford to lose. Most seniors are counting on the retirement benefit to cover the bills when they stop working. Meanwhile, some workers who earn the least rely on Supplemental Security Income (SSI) just to make ends meet, and people who can’t work because of a disability get regular disability payments. All these supports keep the safety net strong and stop many households from slipping into poverty.
When the Cost-of-Living Adjustment (COLA) Arrives
Every October 15, the SSA announces how much larger the COLA will be for the coming year. This increase, shown as a percentage, lifts every check the agency sends out—retirement, SSI, and disability—so the dollars keep pace with rising costs. The COLA is figured with numbers from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) collected until the end of September. Right now, analysts expect the COLA to land around 2.6% to 2.7%. If that holds, the larger checks will start going out in January.
Why It Pays to Wait Before Claiming Benefits
When you reach retirement age, the Social Security Administration gives you options: take your benefits early and get a smaller monthly check, or wait a few years to get a bigger check later. Once your benefit amount starts, it stays the same for the most part, going up only with a cost-of-living adjustment (COLA). If you have the runway to put off retirement benefits, the bigger monthly payment you earn later can turn out to be a great financial move.
A Rare Treat For SSI-Only Recipients: Double Benefits
This fall, SSI-only beneficiaries get an unexpected little windfall: two SSI checks within the same month. Monthly SSI benefits usually arrive on the first day, but when that day is a holiday or weekend, the check gets paid early on the last business day before the holiday. So when Labor Day fell on September 1, September money arrived early on August 29. A similar early payment is coming for November, which will arrive in early October since November 1 is on a Saturday.
Using SSA’s Schedule to Budget Wisely
Understanding SSA’s predictable payment calendar makes it easier for beneficiaries to budget rent, groceries, and medical bills. But remember that holidays and weekends can bump benefits up a day or two, and it’s wise to plan for that. Also, mark your calendar for October 15, when the SSA usually announces the COLA for the coming year. That bump may add hundreds of dollars more to your checks, helping you stretch your budget a little further.
October’s announcements—SSI’s double payment and the soon-to-be-revealed cost-of-living adjustment—show how crucial it is to stay in the loop. Circle the date on your calendar, visit SSA.gov for the official word, and consult your financial adviser if you’re thinking about when to file for retirement. Some simple planning can protect your money in the years ahead.
