SSDI COLA Up 2.5% For 2025

It’s expensive to live. It seems like the prices for gas, groceries, and everything else we buy are constantly rising. For those who work, pay increases are rare even though everyday costs keep going up.

Fortunately, government agencies do keep up with the pace of inflation. Every year, they make adjustments to monthly benefit payments based on the cost of living. This cost of living adjustment (COLA) varies every year. In some years, it does not change at all, while in its highest year, 1980, it was at 14.3%.

It was recently announced that for 2025, the COLA for Social Security Disability Insurance (SSDI) will be 2.5%. This number is the same for Supplemental Security Income (SSI). More than 72.5 million Americans will see this increase starting with their January 2025 benefit payments. Those who receive both SSDI and SSI payments will receive increases in both checks,

The Social Security Administration (SSA) announced the increase on October 10. The 2.5% COLA rate is lower than last year, which was at 3.2%. This increase is the lowest since 2020, when the COLA was just 1.3%. That’s because inflation has started to cool down compared to recent years. In several years, the COLA was at 0 and did not change at all: 2009, 2010, and 2015.

The first COLA was established in June 1975. It was based on the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the second quarter of 1974 to the first quarter of 1975. Before 1975, benefit increases for Social Security programs were set by legislation.

The average SSDI payment is $1,542, so the COLA increase will bump up that payment by $38.55 per month. This is an increase of more than $460 per year. For retirees, the average increase is $50 per month.

Other government benefits that use the COLA to account for inflation include Medicare and Supplemental Nutrition Assistance Program (including food stamps and other programs).

View Your COLA Notice Online

COLA notices for Social Security beneficiaries will be available online in December 2024. The notice can be found in the Message Center of your Social Security account.

This year, Social Security beneficiaries will receive a newly designed COLA notice that is simplified. The new and improved COLA notice is now just one page. It provides exact dates and dollar amounts of a beneficiary’s new benefit amount as well as any deductions.

Learn More About Social Security Disability Benefits

Inflation is constant and while it can be hard to get by financially sometimes, the SSA and other government agencies do look at making annual increases in payments due to increased cost of living.

Have questions about your benefits? Contact a White Plains Social Security Disability lawyer from The Law Office of Michael Lawrence Varon. We have the skills and knowledge to effectively handle your case. Call (914) 228-1770 or fill out the online form to schedule a consultation.

Source:

ssa.gov/cola/