The Social Security Administration (SSA) has announced that Social Security Disability Insurance (SSDI) recipients will receive a 2.5% COLA (Cost of Living Adjustment) increase in 2025.
This adjustment, slightly below the average 2.6% COLA seen over the past decade, will provide much-needed financial relief for SSDI beneficiaries to cope with rising prices and inflation.
How Much Extra SSDI Recipients Could Receive
For SSDI recipients receiving an average monthly payment of $1,539, the 2.5% COLA increase means an extra $38 per month.
Over the course of 12 months, this adds up to $456 per year, offering additional support for those facing higher living costs.
Who Will Receive the $456 Increase?
Not all SSDI recipients will receive the same amount. Here’s a breakdown:
- Recipients with average payments of $1,539 will see an additional $38 per month, amounting to $456 over a year.
- Higher-than-average SSDI payments: Those receiving more than the average could see a larger boost. For example, a recipient with a $3,000 monthly SSDI benefit could see their payment increase to $3,075, an additional $900 per year.
- Lower-than-average SSDI payments: If your SSDI payment is $800 per month, the COLA boost will raise it to about $820, providing an additional $240 annually.
When Will SSDI Recipients Get the 2025 COLA Increase?
The first SSDI payment with the 2.5% COLA increase will be issued on January 3, 2025.
Recipients should note that SSI beneficiaries will receive their increase slightly earlier, on December 31, 2024, since January 1, 2025, is a federal holiday.
2025 SSDI Payment Schedule
SSDI recipients can expect their COLA-boosted payments according to the following schedule:
- January 3, 2025: For those who began receiving Disability Insurance before May 1997, or those receiving both SSDI and Supplemental Security Income (SSI).
- January 8, 15, and 22, 2025: For all other SSDI recipients, payments will be based on birthdates:
- January 8: For those born between the 1st and 10th of the month.
- January 15: For those born between the 11th and 20th.
- January 22: For those born between the 21st and 31st.
Key Takeaways
- Average SSDI recipients receiving $1,539 will see an extra $456 annually after the 2.5% COLA increase.
- Higher-income SSDI recipients could see even larger increases, while those with lower payments will receive smaller monthly boosts.
- The first COLA-increased SSDI payment will be issued on January 3, 2025, with subsequent payments following the usual schedule.
The 2025 COLA increase provides essential financial support for SSDI recipients, with the possibility of receiving up to $456 extra annually for those receiving average payments.
While this increase is modest compared to previous years, it will help beneficiaries manage rising living expenses.
SSDI recipients should monitor their payment schedule to ensure they receive the updated amounts beginning in January 2025.
FAQs
How much will SSDI recipients receive after the 2025 COLA increase?
SSDI recipients will receive a 2.5% increase. For those receiving the average benefit of $1,539, this translates to an additional $38 per month or $456 annually.
When will the 2025 COLA increase for SSDI take effect?
The first SSDI payment with the COLA increase will be issued on January 3, 2025.
Will all SSDI recipients receive the same increase?
No, the increase is based on your current SSDI benefit. Higher payments will receive a larger boost, while lower payments will receive less.
When will SSI recipients get their COLA increase?
SSI recipients will receive their COLA-increased payment on December 31, 2024.
Who qualifies for the January 3, 2025 SSDI payment?
Recipients who began receiving Disability Insurance before May 1997 or those receiving both SSDI and SSI will qualify for the January 3 payment.
