If you’re a recipient of Social Security Disability Insurance (SSDI), you’re likely keeping an eye on the annual Cost of Living Adjustment (COLA) announcement. This adjustment can provide a crucial boost to your benefits, helping to offset inflation and rising living costs. The Social Security Administration (SSA) won’t reveal the 2025 COLA increase until October 2024, but early projections offer a glimpse into what you can expect.
Projections
So far, all signs suggest that the 2025 COLA increase will be smaller than in previous years. In 2024, the COLA was higher due to inflation, but as inflation cools down, the adjustment is expected to shrink.
According to the Senior Citizens League, a 2.5% increase is currently projected for 2025. While this is lower than earlier projections, it’s still a bump that SSDI beneficiaries can look forward to.
Payment
The SSA reported that, as of August 2024, the average SSDI payment is about $1,539 per month. So, how much will SSDI recipients get after the 2025 COLA increase?
A 2.5% boost would raise the average monthly payment to approximately $1,577. This equates to about $38 extra each month or roughly $461 over the course of the year. For those receiving smaller payments, such as $1,000 or $500, their benefits would rise to around $1,025 and $512, respectively.
While this may not seem like a huge increase, it’s still helpful, especially for individuals living on a fixed income.
| Current Payment | After 2.5% COLA | Extra Per Month | Extra Per Year |
|---|---|---|---|
| $1,539 | $1,577 | $38 | $461 |
| $1,000 | $1,025 | $25 | $300 |
| $500 | $512 | $12 | $144 |
Payment Schedule
SSDI beneficiaries can expect their first increased payments in January 2025. However, SSI (Supplemental Security Income) recipients will see their January payment arrive on December 31, 2024, due to the New Year’s Day holiday.
Here’s the SSDI payment schedule for January 2025:
- January 3: Payments for SSI and SSDI recipients who qualified before May 1997.
- January 8: For SSDI recipients with birthdays from the 1st to the 10th of the month.
- January 15: For SSDI recipients with birthdays from the 11th to the 20th.
- January 22: For SSDI recipients with birthdays from the 21st to the 31st.
COLA Increase
While any COLA increase is welcome, it’s important to recognize that the 2025 adjustment will likely be smaller than what SSDI recipients saw in 2024. Why? It’s all tied to inflation. When inflation spikes, COLA increases to help maintain the purchasing power of benefits. However, as inflation cools, so does the need for a hefty increase.
This 2.5% increase is a sign that inflation is stabilizing, which is good news for the overall economy. However, for SSDI beneficiaries, it may feel like a modest boost in light of rising costs for essentials like food, housing, and healthcare.
What You Can Do
Even with a smaller COLA increase, SSDI recipients can take steps to manage their finances. Budgeting carefully, keeping an eye on spending, and seeking out resources that offer assistance to disabled individuals can help stretch those dollars further.
It’s also wise to stay informed. The official 2025 COLA announcement is expected in October 2024, and that figure will determine your exact increase. Once it’s released, the SSA will update your benefits, and you’ll begin to see the higher payments in January.
If you’re struggling to make ends meet, there are also local and federal programs designed to help SSDI recipients with housing, healthcare, and food. Consider exploring these options if the COLA increase falls short of your needs.
Ultimately, while the 2025 COLA may not offer as large an increase as last year, it still provides a valuable cushion against the rising cost of living. Every little bit helps when you’re navigating life on a fixed income, and even a modest increase can go a long way.
FAQs
How much will SSDI payments increase in 2025?
Projections suggest a 2.5% COLA increase for 2025 SSDI benefits.
When will SSDI payments increase?
Increased payments will start in January 2025, based on the COLA.
How much extra will I get from COLA?
On average, SSDI recipients could get about $38 more per month.
Will SSDI recipients get their January payment early?
Only SSI recipients get their January payment on December 31, 2024.
How is COLA determined?
COLA is based on inflation, as measured by the Consumer Price Index (CPI).
