The Social Security program has many rules and can be complex, and there are certain dates retirees should mark on their calendars. For instance, retirees know that they will receive their monthly benefits on a Wednesday, depending on when their birthday is, and that the annual cost-of-living-adjustment (COLA) usually comes out in early to mid-October.

Now, with the year winding down, all Social Security retirees should mark Nov. 20 as another date to remember. Here's why.

Your 2025 COLA

In October, the Social Security Administration (SSA) announced the COLA for 2025. Each year, benefits are increased to help maintain purchasing power with inflation. Inflation has soared recently, so retirees have experienced some nice benefit hikes. Inflation finally slowed this year, which is bad for COLAs but does slow the rise in consumer prices, ideally making the cost of living more manageable.

The SSA announced that next year's COLA will be 2.5%, the smallest COLA in four years. The average Social Security check for retirees in September was roughly $1,921, or $23,052 annually. The 2.5% increase will bring the average monthly benefits to $1,969, or $23,628 annually.

New benefit payments will begin in January 2025, but everyone receives different amounts based on when they started claiming benefits, how many years they worked and how much they made in earnings throughout their careers. Social Security can be a significant portion of a retiree's income.

Nearly nine out of 10 people over 65 received benefits as of June 30 this year, according to the SSA, and benefits represent roughly 30% of income for people over 65. But note that 37% of men and 42% of women who collect benefits use Social Security for at least half of their income, while 12% of men and 15% of women rely on Social Security for at least 90% of their income.

It can be helpful for retirees to know the amount they will receive from Social Security for the following year so they can begin budgeting. That's why all retirees should create their personal my Social Security account by Nov. 20. The account is free and allows retirees to request a replacement Social Security card, receive a 1099 tax form, check the status of an application, estimate their future benefits and manage their current benefits.

Retirees can also view their COLA notice on the account and see how much their benefits will increase next year starting in early December. However, to get the notification, retirees need to create their accounts by Nov. 20.

A physical letter will still be sent out

Many people prefer to avoid the internet when possible, so you don't need one of these accounts. The SSA will be mailing physical COLA notices throughout the entire month of December.

However, budgeting can lead to better decision-making, and a key part of budgeting is knowing how much money you can spend. So if you have a few extra minutes, it might be worth signing up for a my Social Security account by Nov. 20 to see your future benefits as soon as possible.

If you do plan to create a budget, here are a few tips that might help you through the process:

• Calculate your after-tax income to know how much money you\'ll have to spend.
• Be conservative when forecasting expenses for housing, transportation and food. Things rarely go according to plan.
• Try to stash a little money away each month for unexpected expenses.
• Track your progress to see where you spent too much and improve your forecasting in the future.

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