Technically speaking, this is the 2024 COLA, as it goes into effect in December 2024. However, because Social Security is paid a month in arrears, this increase will be reflected in the payment that beneficiaries receive in January. For this reason, it is often referred to as the 2025 COLA.

Social Security retirement and disability benefits for 2025 will start to roll out for millions of Americans as early as Tuesday and throughout January. Why it matters: Benefits increase by 2.5% and about $50 a month but it's the lowest benefit increase in recent years.

Because of the calendar, Social Security recipients who get Supplemental Security Income benefits get their first 2025 check on Dec. 31, 2024.

SSI payments usually go out on the first day of the month but are going out earlier for January, February and March.

Each year, tens of millions of retirees collecting Social Security benefits anxiously await the upcoming COLA, or cost-of-living-adjustment (COLA). The COLA is a pivotal part of the Social Security program that reflects the next year's increase in Social Security benefits.

Calendar changes mean some recipients will get January payments today. Another quirk occurs at the end of 2025.