Social Security update: Payments of up to $5,108 to go out this week

The first round of Social Security retirement benefits for 2025 will be paid this week.

Social Security benefits form the bedrock of retirement income for millions of older Americans. January 2025 marks the first month of boosted benefits for this year due to the Cost of Living Adjustment (COLA), which raises payments on an annual basis to halt the erosion of purchasing power. All SSA administered benefits are subject to the rise, including retirement and disability payments.

What to Know

Due to the huge number of recipients, not every claimant gets their money on the same date each month. The date a beneficiary is paid is determined by various factors, including the type of benefit and their date of birth.

This week, Social Security beneficiaries with a birthday that falls between the 1st and 10th of any given day of the month can expect their monthly payment on Wednesday, January 8.

Thanks to the COLA, the estimated average retirement benefit will increase by around $49 a month, from $1,927 to $1,976, the SSA has confirmed.

The maximum amount available to retirees who stop working at the Full Retirement Age - currently 67 years old - is $4,018. If you take your benefits at the earliest possible age of 62, your maximum payment would be $2,831. But if you retire at age 70, you could get a maximum of $5,108 per month.

However, most retirees do not receive the maximum benefit available, which is dependent on how much you earned during your working years.

What People Are Saying

Independent Social Security and Medicare policy analyst Mary Johnson: "The 2025 COLA will be the lowest received by Social Security beneficiaries since 2021, at the same time inflated prices persist on key essentials such as housing, meats, auto insurance, any type of service and repairs. Despite it being the lowest COLA since 2021, a 2.5 percent COLA would be considered about average."

AARP CEO Jo Ann Jenkins, in a statement to Newsweek: "This adjustment means older Americans will receive needed relief to help better afford essential items from groceries to gas. Inflation took a financial toll this past year, particularly on retirees, who often rely on Social Security as a key source of income. Even with this adjustment, we know many older Americans who rely on Social Security may find it hard to pay their bills. Social Security is the primary source of income for 40 percent of older Americans.

What's Next

The next tranche of retirement payments will be made on Wednesday, January 15, followed by another payment on January 22. The SSA says you should wait three working days before contacting the government agency if a payment hasn't arrived as expected.