With the 2.5% Cost-of-Living Adjustment (COLA) set to take effect in January 2025, Social Security beneficiaries, including those receiving Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI), will see an increase in their monthly payments.
This adjustment is intended to help recipients keep pace with rising living costs. For SSDI beneficiaries, the average payment is expected to reach $1,580 in 2025, although actual amounts may vary based on individual work history, earnings, and specific eligibility factors.
SSDI Average Payment Increase in 2025
For SSDI recipients, the average monthly benefit as of August 2024 is approximately $1,539. By December, it is projected to increase slightly to around $1,542. With the 2025 COLA, SSDI payments are expected to rise further to an average of $1,580 beginning in January 2025.
However, this figure is an average, and actual payments may differ significantly based on each recipient’s work and earnings record.
| Time Period | Average SSDI Payment |
|---|---|
| August 2024 | $1,539 |
| December 2024 | $1,542 |
| January 2025 (with COLA) | $1,580 |
How COLA Impacts SSDI and SSI Beneficiaries Differently
COLA affects all Social Security benefits, but average payment amounts vary by program. For example, retirement benefits tend to be higher on average compared to SSDI and SSI.
The average Social Security retirement payment is often greater than SSDI benefits due to differences in calculation methods and earnings requirements.
Family Benefits for SSDI Recipients
Family members of SSDI recipients, such as spouses and children, may also be eligible for Social Security benefits on the worker’s record. With the 2.5% COLA increase, family members can expect slightly higher benefits as well:
- Average Family Benefit (worker with disability, spouse, one or more children): $2,826 (up from $2,757)
- Spousal Benefit: Expected to rise to about $431 (from $421)
- Child Benefit: Expected to reach $504 (up from $492)
| Family Member | 2024 Average Payment | 2025 Projected Payment (with COLA) |
|---|---|---|
| Worker, Spouse & Child | $2,757 | $2,826 |
| Spouse | $421 | $431 |
| Child | $492 | $504 |
Factors Affecting Individual Payment Amounts
While the average SSDI payment is estimated at $1,580 after the COLA adjustment, it’s important to remember that individual benefits are based on several factors:
- Work History: SSDI payments are calculated based on a person’s lifetime earnings in jobs covered by Social Security.
- Earnings Record: Higher lifetime earnings generally result in higher monthly SSDI payments.
- Additional Family Benefits: If eligible, family members may also receive benefits on the worker’s record, though this will affect the family’s overall benefit cap.
How the 2025 COLA Affects Financial Planning for SSDI Recipients
The 2025 COLA offers a modest increase, which may be helpful for SSDI recipients facing increased costs for essentials. Still, many recipients will need to carefully budget and manage their resources.
The additional funds, while beneficial, may not cover the full extent of inflationary pressures affecting healthcare, housing, and utility costs.
In 2025, SSDI recipients will see an average monthly benefit increase to $1,580 due to the COLA adjustment. Family benefits will also rise, providing additional support for eligible spouses and children.
Although the increase won’t cover all living expenses, the COLA aims to ease financial pressure for SSDI and other Social Security beneficiaries as they navigate the rising cost of living.
