The Social Security Administration (SSA) has announced a 2.5% Cost-of-Living Adjustment (COLA) increase for Supplemental Security Income (SSI) payments in 2025. This adjustment, mandated by law, helps ensure that federal benefits rise in line with inflation, measured by the Department of Labor’s Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). More than 72.5 million Americans, including retirees, Social Security Disability Insurance (SSDI) beneficiaries, and SSI recipients, will benefit from this increase.
How the 2025 COLA Will Affect SSI Payments
For SSI recipients, the 2.5% increase means that their monthly payments will rise starting with their December 31, 2024, payment. SSI recipients typically receive lower monthly benefits than retirees, but the COLA adjustment will still offer meaningful support.
For example, the maximum federal benefit for an individual SSI recipient in 2024 was $914. After applying the 2.5% COLA increase, that amount will rise by approximately $23, bringing the new monthly benefit to $937. Over the course of the year, this adjustment will result in an additional $276 for SSI recipients.
This increase helps SSI recipients manage rising costs, particularly for essentials like housing, food, and medical expenses. For those receiving both Social Security and SSI, the COLA adjustment will apply separately to each benefit.
When Will the 2025 COLA Be Applied?
SSI recipients will receive their COLA-adjusted payments starting on December 31, 2024. This early payment accommodates the fact that January 1 is a federal holiday. For Social Security recipients, the increased payments will begin in January 2025, with the exact date depending on their birthdate.
The SSA mails COLA notices throughout December, and beneficiaries can view their new benefit amounts online through their personal my Social Security account starting in early December. For more details about managing your benefits and viewing your COLA notice online, visit the Social Security Administration’s FAQ page.
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Key Takeaways from the 2025 COLA
- SSI recipients will see a 2.5% increase in their monthly payments.
- For an individual SSI recipient, this equates to approximately $23 more per month, totaling an additional $276 per year.
- COLA-adjusted SSI payments will start on December 31, 2024, while Social Security recipients will see the increase in January 2025.
The 2025 COLA ensures that millions of Americans can better manage the impact of inflation on their daily lives.