If you are wondering why you received an extra payment on December 31, we regret to inform you that it is not an extra payment, but your first social security payment for the year 2025.
This is primarily due to the fact that the 1st is a holiday, and because it is a holiday, Social Security does not want its payment to be delayed in order to avoid inconvenience to any beneficiaries. We will explain what happened and why you received it earlier.
Advances in SSI payments
As you are aware, Social Security is a vital source of support for millions of Americans who, like water in May, wait each month for this payment to arrive in order to end the month in the most dignified manner. However, calendars frequently undergo unexpected changes.
This is what happened on December 31, 2024, when some Supplemental Security Income beneficiaries received an additional payment; it’s a mystery, right? We are here to help you solve the mystery of your first payment in 2025.
The main reason for this “extra” payment is that when a payment day coincides with a weekend or federal holiday, the Social Security Administration decides to move the date to ensure that beneficiaries receive their money on time.
In this case, because January 1, 2025 is a federal holiday due to New Year’s Day, the corresponding payment was moved to the last business day of the year, December 31, 2024. That is why you see this “extra” payment in your bank account.
Give me more details
This advance has been applied specifically for SSI beneficiaries, who are typically paid on the first of each month.
You must keep in mind that there will be no more first payments in January, and you will have to wait until February 1st to receive the next one, so you must plan your spending carefully so that you are not in a hurry in the final days.
What is the payment that I have received then?
As previously stated, the payment you received is your SSI payment for January, including the additional cost of living adjustment (COLA).
That is, the 2.5% implemented in 2025 to compensate for the effects of inflation while ensuring that all beneficiaries’ pockets do not lose purchasing power. You are already aware that this adjustment affects other Social Security beneficiaries, but they will not have the option of receiving a payment unless it coincides with a national holiday.
How is the COLA adjustment calculated?
The COLA adjustment is automatically applied to each payment and is 2.5% higher than what Social Security provides.
This adjustment is calculated using the CPI-W, and the price changes in the third quarters of the previous year and this year are taken into account to estimate how much prices have risen or fallen, so that by adding that percentage to the payments, users are unaware that there has been a change in inflation.
We are currently experiencing a relatively low COLA because we are finally overcoming the inflation crisis; this means that the COLA is expected to be much smaller, if not nonexistent, within the next few years.
You understand, the payment on the 31st was nothing more than what you were entitled to for meeting certain requirements.
Read Also :- Confirmed – These are the days that SSDI benefits will be paid in January 2025 if you meet these requirements
