The Social Security Administration (SSA) has announced the cost-of-living adjustment (COLA) for Social Security Disability Insurance (SSDI) and other Social Security beneficiaries. In this blog, we’ll explore what this increase means for SSDI recipients, how it compares to previous years, and when you’ll see the adjustment in your payments.
What is the 2025 SSDI Increase?
For 2025, SSDI beneficiaries will receive a 2.5% increase in monthly payments. This is slightly smaller than last year’s increase which was 3.2%.
To calculate your new monthly benefit, you can multiply your current benefit by 1.025. On average, Social Security recipients can expect an increase of about $50 per month.
Additionally, this 2.5% COLA will raise the substantial gainful activity (SGA) income limits to $1,570 per month for non-blind recipients and $2,620 per month for blind individuals in 2025. These thresholds are used to determine SSDI eligibility for beneficiaries who may still work part-time without losing their benefits.
When Will You Receive the Increased Payment?
The SSA will begin applying the 2.5% increase to SSDI payments in January 2025. Official notices detailing your updated benefit amount will arrive by mail in December 2024. The SSA communicates such updates solely through official letters, so be cautious of potential scams or fraudulent phone calls promising information on your SSDI increase.
Learn More: How SSDI Affects Other Benefits: Navigating the Complexities
Understanding the Cost-of-Living Adjustment (COLA)
A cost-of-living adjustment (COLA) is an annual increase that impacts various benefits, including SSDI, Social Security Retirement, SSI, and VA benefits, as well as related figures like the SGA limit.
Introduced in 1975, the COLA has been a staple of the Social Security system for nearly 50 years. This adjustment is based on data derived from third-quarter inflation metrics of the previous year, which is why it is announced in October, shortly after the end of the third quarter. The COLA can only be a positive value or 0%, ensuring that benefits do not decrease. Since its introduction, the COLA has registered a 0% increase only three times: in 2010, 2011, and 2016.
Preparing for Your 2025 SSDI Increase
While the 2.5% COLA for 2025 may be lower than last year, it still provides a valuable boost for SSDI recipients facing the rising costs of essentials. This adjustment offers additional financial support for SSDI beneficiaries as they plan for the year ahead.
If you need assistance with your SSDI claim, appeal, or any questions about your eligibility, the experienced team at Tabak Law is here to help. Contact us today for a free case review, and let us assist you in securing the benefits you deserve.
Nothing posted on this website is intended, nor should be construed, as legal advice. Blog postings and site content are available for general education purposes only.