DDN – As we move into 2025, many retirees are eagerly anticipating their Social Security payments, which will reflect the Cost of Living Adjustment (COLA).
However, some retirees in their 70s may face a delay in receiving their new Social Security payments on January 7th, 2025. For these individuals, it’s important to understand the reasons behind the delay and the impact it may have on their financial planning for the month.
Social Security Payment Schedule: A Breakdown
The Social Security Administration (SSA) has a well-established payment schedule, and retirees are grouped into different categories based on their birth dates.
The SSA uses these birth date ranges to determine when each beneficiary will receive their monthly benefits. While some retirees will see their payments deposited on January 7th, 2025, many individuals in their 70s will need to wait a little longer.
For retirees who are in the 70 to 74 age group, payments are not always sent out on the first Wednesday of the month. These individuals typically belong to the second or third group, which means their payments will arrive on later dates, depending on their specific birthday ranges.
As a result, they won’t receive their payment on January 7th, as their checks will be sent in the second week of January, or even later in the month.
Why the Delay?
The delay for retirees in their 70s occurs due to the Social Security Administration’s birth date-based payment system. The SSA processes payments in the following order:
Because retirees in their 70s generally fall into Group 2 or Group 3, their payments for January 2025 will be issued on January 8th or later. The delay is simply a matter of which group they belong to based on their birth date.
Impact of the Delay
While the delay may cause inconvenience for some retirees, it’s important to note that this is a standard procedure established by the Social Security Administration. The payments for retirees in their 70s are still being processed, and those who have direct deposit set up will see the funds deposited into their accounts shortly after they are issued. For retirees who rely on checks, the postal delivery may take a little longer.
Retirees need to plan for this delay, especially those who may be relying on their Social Security checks for immediate living expenses. Financial institutions often offer options to help retirees manage their funds until the payment arrives, such as short-term loans or lines of credit. Additionally, retirees can always check the status of their payments through the SSA’s online portal or by calling their customer service.
COLA Adjustment and Payment Increases
The January 2025 Social Security payments will reflect the updated Cost of Living Adjustment (COLA), which is designed to help beneficiaries keep pace with inflation.
This year, COLA is expected to provide a substantial increase in Social Security payments, helping retirees cope with rising living costs. The COLA increase will vary based on the amount of each individual’s Social Security benefits.
Retirees should check the updated benefit amounts to see how the COLA adjustment has impacted their monthly checks. For those who are receiving the maximum allowable benefit, the payment could reach up to $5,180 per month.
Social Security Payment Schedule for January 2025:
| Group | Eligibility | Payment Date |
| Group 1 | Retirees born before May 1997 | January 7, 2025 |
| Group 2 | Retirees born between May 1st and 10th | January 8, 2025 |
| Group 3 | Retirees born between 11th and 20th | January 15, 2025 |
| Group 4 | Retirees born between 21st and 31st | January 22, 2025 |
Final Thoughts
While some retirees in their 70s may not receive their Social Security payments on January 7th, 2025, understanding the Social Security payment schedule can help mitigate any concerns. The delay is due to the birth date-based payment system, which ensures that payments are distributed fairly and efficiently. The COLA adjustment should provide retirees with an increased benefit to help offset inflation, though the exact amount will depend on their individual benefits.
Retirees should stay informed about their payment schedule and consider signing up for direct deposit to ensure they receive their funds as soon as they are issued. If there is any confusion or concern about payment dates, retirees can always contact the Social Security Administration for clarification.
Reference: Thousands of retirees in their 70s won’t get new Social Security payment on January 7th
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