As the year draws to a close, it’s crucial for Social Security retirees to stay informed about important dates and updates that can impact their benefits. One such critical date is November 20, 2024. Here’s why this date matters and what steps you should take to ensure you’re prepared for the upcoming changes.
Understanding the 2025 Cost-of-Living Adjustment (COLA)
In October 2024, the Social Security Administration (SSA) announced a 2.5% cost-of-living adjustment (COLA) for 2025, marking the smallest increase in four years. This adjustment is designed to help beneficiaries maintain their purchasing power amid inflation.
Impact on Average Benefits
As of September 2024, the average monthly Social Security benefit for retirees was approximately $1,921, totaling $23,052 annually. With the 2.5% COLA, the average monthly benefit will increase to about $1,969, or $23,628 annually, starting in January 2025.
Why November 20 Matters
To access your personalized COLA notice and understand how the adjustment affects your specific benefits, it’s essential to have a personal my Social Security account. The SSA has indicated that beneficiaries need to create their accounts by November 20, 2024, to view their COLA notice online in early December.
Benefits of a my Social Security Account
A my Social Security account offers several advantages:
- Immediate Access to COLA Notices: View your benefit adjustments as soon as they’re available.
- Manage Benefits: Update personal information, manage direct deposit details, and access benefit statements.
- Tax Documents: Easily obtain your SSA-1099 form for tax purposes.
- Replacement Cards: Request a replacement Social Security card if needed.
How to Create a my Social Security Account
Follow these steps to set up your account:
- Visit the SSA Website: Go to www.ssa.gov/myaccount.
- Choose a Credential Service Provider: You can create your account through Login.gov or ID.me.
- Provide Personal Information: Enter your Social Security number, date of birth, and other identifying details.
- Verify Your Identity: Complete the verification process as prompted.
- Create a Username and Password: Set up your login credentials for future access.
Alternative: Physical COLA Notices
If you prefer not to create an online account, the SSA will mail physical COLA notices throughout December 2024. However, having an online account allows for earlier access to your benefit information, aiding in timely financial planning.
Budgeting Tips for Retirees
Understanding your benefit adjustments can help in effective budgeting. Consider the following tips:
- Calculate After-Tax Income: Know your net income to plan expenses accurately.
- Forecast Expenses Conservatively: Account for housing, transportation, and food costs, anticipating potential increases.
- Save for Unexpected Expenses: Allocate a portion of your income to an emergency fund.
- Monitor Spending: Regularly review your expenses to identify areas for adjustment.
| Date | Action Required | Purpose |
|---|---|---|
| October 2024 | SSA announces 2025 COLA | Inform beneficiaries of benefit adjustments |
| November 20, 2024 | Deadline to create my Social Security account | Access COLA notice online in early December |
| Early December 2024 | Online COLA notices available | View personalized benefit adjustments |
| December 2024 | Physical COLA notices mailed | Receive benefit adjustment details by mail |
| January 2025 | Adjusted benefits disbursed | Receive updated monthly benefit payments |
Why is November 20, 2024, an important date for Social Security retirees?
Creating a my Social Security account by this date allows you to access your 2025 COLA notice online in early December, facilitating timely financial planning.
How does the 2.5% COLA affect my benefits?
The 2.5% COLA increases the average monthly benefit from $1,921 to approximately $1,969, starting in January 2025.
What if I don’t create a my Social Security account by November 20?
You will receive your COLA notice by mail in December, but creating an online account provides earlier access to your benefit information.
