As of October 10, 2024, the Social Security Administration (SSA) officially announced the Cost-of-Living Adjustment (COLA) for 2025, impacting recipients of Social Security Disability Insurance (SSDI).
This adjustment aims to help recipients keep up with inflation, and while it may not be as high as some hoped, the 2.5% COLA increase will still provide additional financial relief to millions of Americans receiving disability benefits.
When Will SSDI Recipients See the Increase?
Although the COLA for 2025 was announced in October 2024, the increase in SSDI payments will not take effect until January 2025. Recipients will see the 2.5% boost reflected in their first January 2025 payment.
How Much Will SSDI Recipients Receive After the 2025 COLA?
The average SSDI benefit before the COLA is $1,539. With the 2.5% COLA increase, the average SSDI payment will rise to $1,577, which is an additional $38 per month.
While this may seem like a modest increase, every extra dollar can be significant for individuals on a tight budget.
To break it down:
- For every $100 of SSDI benefits, recipients will receive $2.50 extra.
- For example:
- If an SSDI recipient currently receives $1,000 per month, the new benefit will be $1,025, an additional $25 per month, or $300 extra per year.
- Those receiving $2,000 per month will see their payment rise to $2,050, an extra $50 per month, or $600 extra per year.
COLA Increase for SSDI and SSI Recipients
Many SSDI recipients who also qualify for Supplemental Security Income (SSI) due to low income will benefit from the COLA increase for both programs.
The 2.5% COLA will apply to SSI payments as well, though the dollar increase may appear smaller because SSI payments are generally lower than SSDI.
For example:
- SSI recipients could see an increase of up to $23 extra per month on average, depending on their current payment amount.
Examples of SSDI Payment Increases After the 2025 COLA
Here are some examples of how the 2.5% COLA increase will affect different SSDI benefit amounts:
| Current SSDI Payment | New SSDI Payment After 2.5% COLA |
|---|---|
| $600 | $615 |
| $800 | $820 |
| $1,000 | $1,025 |
| $2,000 | $2,050 |
| $3,000 | $3,075 |
While the 2.5% COLA increase may not be as large as some hoped, it still provides crucial financial support to SSDI and SSI recipients, especially for those on a fixed income.
The extra money—whether it’s $38 per month on average for SSDI or a smaller amount for SSI—can help offset rising costs of living, particularly in areas such as food, healthcare, and housing.
FAQs
When will SSDI recipients see the COLA increase in their payments?
SSDI recipients will see the 2.5% COLA increase reflected in their payments starting in January 2025.
How much will the average SSDI payment increase after the 2025 COLA?
On average, SSDI recipients will see an increase of about $38 per month, bringing the average monthly benefit to $1,577.
Will SSI recipients also get a COLA increase in 2025?
Yes, SSI recipients will also receive a 2.5% COLA increase in 2025, though the increase may be smaller in dollar amounts due to lower SSI payments.
How much more will an SSDI recipient getting $1,000 per month receive after the COLA?
An SSDI recipient receiving $1,000 per month will see their payment increase to $1,025, an extra $25 per month.
What should I do if I don’t see the COLA increase in my January 2025 payment?
If you don’t see the COLA increase in your January 2025 payment, contact the Social Security Administration (SSA) for assistance.
