The Social Security Administration (SSA) has announced the Cost-of-Living Adjustment (COLA) for 2025, which will impact millions of Americans. In 2025, beneficiaries will see a 2.5% increase in Social Security and Supplemental Security Income (SSI) payments. This adjustment is vital for helping recipients cope with inflation and the rising cost of living. If you receive disability benefits, here’s what this means for your financial future.
About the 2025 COLA Increase
Approximately 68 million individuals receiving Social Security will see a 2.5% increase in their SSD monthly payments starting January 2025. Social Security Disability (SSD) beneficiaries will receive, on average, $1,580 per month, a monthly increase of about $38.
Meanwhile, around 7.5 million SSI recipients will notice the payment adjustment beginning December 31, 2024.
The maximum SSI benefit will rise to $967 for individuals and $1,450 for couples. In addition, the SSA projects that the average monthly Social Security benefit for disabled workers will be approximately $1,580. Additionally, the Substantial Gainful Activity (SGA) threshold for non-blind recipients will increase to $1,620 per month in 2025.
How Is COLA is Calculated?
The U.S. Department of Labor calculates the change in the Consumer Price Index (CPI) specifically for urban wage earners and clerical workers by comparing the average CPI from the third quarter of the previous year to the average CPI for the third quarter of the current year.
This process involves gathering extensive data on the prices of a representative basket of goods and services commonly purchased by these groups, including essential items like food, housing, transportation, and healthcare.
How to Access Updated COLA Information
Beginning in early December, the SSA will send out notifications regarding your updated benefit amount. This year, recipients will receive a redesigned and simplified COLA notice that is more straightforward. The notice will consist of just one page, featuring clear language that highlights your new benefit amount and any applicable deductions.
If you have a mySocialSecurity account, you can check your COLA notice online, which is a quicker and more secure alternative to waiting for it to arrive in the mail. To view your notice online, ensure that you create your account by November 20th.
Disability Attorneys Dedicated to Helping Secure Your Benefits
The 2025 COLA adjustment is a significant step for disability beneficiaries, providing essential support as inflation continues to impact daily expenses.
If you have recently become disabled and unable to work, you’re not alone. Our disability attorneys are here to help secure the life-changing assistance from the SSA that you could be entitled to by law.
Contact us today by submitting a form online or calling our office at 503-255-9092 for a free, no-obligation case evaluation.