July might be the turning point for the social security recipient as they will be getting their regular monthly benefits. But here is a catch, soon there will be an inflation adjustment followed by new policy rollouts like updated overpayment recovery and other healthcare benefits. This month would determine how you may have to tweak your financial planning a little bit. Read closely as this article would delve more into the changes to understand why this month is important for all social security recipients.
Why July is crucial for Social Security recipients?
The month of July will be important for social security recipients as it will be the starting point where the inflation trends will be monitored to determine the next year’s increase in the COLA and subsequently the percentage of increase in all of the social security benefits. The recipients should also look out for the payment schedule of social security benefits for this month.
Starting from this month, those recipients who were overpaid by the Social Security Administration (SSA) after April 2025 could see more of their monthly benefits getting withheld so as to recover the overpaid amounts from them. Medicare Part B premiums will also get finalized on how much it would be covered under COLA. Overall, the month of July would be the crucial factor to finalize both short- and long-term financial planning for many.
Clarity over COLA: How it can impact your 2026 benefits and budget?
Starting from July, the SSA will begin the tracking for inflation to determine how much there would be an increase in Cost-of-Living Adjustment (COLA) for next year and how much impact will it make for the increase in social security benefits. The inflation tracking will take place from July till September using Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The data taken during these three months would determine how much increased social security benefits you would receive from the next year in 2026. The increased COLA will be announced in October and will be effective from January 2026.
July 2025 is crucial for long-term planning as it would provide the early numbers and hints for what recipients might see in further adjustments. Although COLA might increase your monthly benefits, the actual numbers may vary for each person as it would be dependent on your income.
Overpayment recovery in July
Starting from July, you might get less monthly social security amounts if you were overpaid from April 2025 till June 2025. This is because the SSA would close on increasing the withholding limit of the social security benefit payments from 10% to 50%. It means about 50% of your monthly social security amount would be withheld to recover the overpaid amounts. However, if you are not comfortable with this new getting implemented, then you can raise an appeal to the SSA and ask for a lower recovery rate by explaining the situation to them.
If your situation is qualifiable for them, then you may even ask for full waiver on the recovery. Please note, you may raise an appeal but it doesn’t guarantee that the appeal would be accepted. You may have to regularly check the bank statements in this case.
Medicare Part B premiums
There will be an increase in the Medicare Part B premiums from 2026. There will an estimated increase of 11.6% in the premiums which means, the monthly Medicare Part B premium would rise from $185 to $206.50. It covers outer care like doctor visits etc. and are usually deducted directly from social security payments. Most beneficiaries won’t get affected under the “Hold Harmless” rule which ensures the hike in the premium doesn’t affect their monthly social security benefits.
But this rule won’t be effective for those who have higher monthly average income, based on their tax return. In this case, you may be charged extra under IRMAA (Income-Related Monthly Adjustment Amount) which calculates the surcharge based on the tax returns which were made two years prior, which can reduce the monthly benefit amount.
Payment schedule for social security recipients in July
Following are the payment schedule for social security recipients in July:
| Payment Date | Payment Receiver |
| 1st July | Monthly SSI payment. |
| 3rd July | People who started getting benefits before May 1997 or those who get both SSI and Social Security Benefits. |
| 9th July | Birth dates from 1st to 10th of any month. |
| 16th July | Birth dates from 11th to 20th of any month. |
| 23rd July | Birth dates from 21st to 31st of any month. |
These dates are subjective to online payments. For mailed checks, it may take a bit longer. It is advised to wait for atleast 3 days if the payment gets delayed before contacting SSA.
Action steps for social security recipients in July 2025
Since July is the crucial month, so make sure you first know your payment date as per your birthdates or if you are receiving SSI payment, then its 1st July. Updates would be regularly sent on the official SSA website. So, stay updated by regularly logging into My Social Security account through Login.gov or ID.me. Check your personal details and opt for online payment or other digital wallets and real-time payment systems as paper checks will be discontinued from 30th September 2025. If you get the overpayment notice, then prepare for the repayment options as SSA will take half of your monthly benefit amount. Finally, review and plan your monthly budget as there will be an increase in the Medicare premium.
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Hello! I’m Shipra Sharma, a professional content writer with a knack for breathing life into words. I have been providing high-quality, research-driven content in Sectors like Technology & Personal Finance . With a background in Finance Tech Management , I specialize in turning complex information into engaging content that resonates with a wide.
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