SSDI Recipients – Potential Increase from Social Security Following the 2025 COLA Boost

Social Security Disability Insurance (SSDI) recipients recently learned that their average monthly payment stands at $1,539 as of August 2024, according to the Social Security Administration (SSA). Like millions of Americans receiving Social Security benefits, SSDI recipients are anticipating the annual cost-of-living adjustment (COLA) for 2025. But will it be as substantial as previous years?

While every SSDI recipient is hoping for a significant increase, early signs suggest that the 2025 COLA will be lower than the one in 2024. This projection is tied to cooling inflation, which directly impacts the size of the COLA. Let’s cut into what SSDI beneficiaries should expect in terms of payment changes, the projected COLA increase, and when these new payments will take effect.

Projections

The Senior Citizens League, a nonpartisan advocacy group for retirees, has projected a 2.5% COLA increase for 2025. This is lower than previous estimates, which were higher earlier in the year when inflation was still a more significant factor.

This means that although SSDI recipients are likely to see a slight increase in their benefits, it will not be as substantial as the COLA adjustments during periods of higher inflation. The most recent COLA for 2024 was 3.2%, and the upcoming adjustment reflects the decreasing inflationary pressure. Still, any increase, however small, is welcome for those relying on fixed benefits.

Payment Timeline

Even though the official 2025 COLA announcement will be made next month, beneficiaries will not see an increase in their payments until January 2025. For SSDI recipients, the payment dates are structured around birthdays and certain conditions.

The schedule for January 2025 SSDI payments is as follows:

• January 3, 2025: Recipients receiving both SSI and SSDI, or those who began receiving benefits before May 1997
• January 8, 2025: Recipients with birthdays between the 1st and the 10th of any month
• January 15, 2025: Recipients with birthdays from the 11th to the 20th
• January 22, 2025: Recipients with birthdays from the 21st to the 31st

Notably, those who receive Supplemental Security Income (SSI) will receive their January payment a bit earlier, on December 31, 2024. This is because January 1 is a federal holiday.

SSDI Payments

While the exact increase will vary based on individual benefit amounts, let’s consider the impact of the projected 2.5% COLA on average SSDI payments. For the average SSDI payment of $1,539 per month, this COLA adjustment would translate to an increase of approximately $38, bringing the new monthly total to around $1,577.

Let’s break it down for different benefit amounts:

Over the course of a full year, SSDI recipients will see this increase accumulate. For example, the average recipient who sees their payment rise from $1,539 to $1,577 will gain an extra $461 annually.

Lower COLA

While the projected 2025 COLA is smaller than last year’s increase, it still provides a much-needed financial boost for SSDI recipients. Even though inflation has cooled down, the rising cost of living makes any additional income essential. A $38 increase may not seem like much on a monthly basis, but over the year, that extra $461 can help cover unexpected expenses or price hikes in essential goods and services.

It’s important to remember that the 2025 COLA applies equally across Social Security programs, including those for retirees, SSDI beneficiaries, and SSI recipients. Everyone will see the same percentage increase, so the actual dollar amount added to each person’s benefit will vary depending on their current payment.

As we look ahead to 2025, SSDI recipients can expect their payments to rise slightly, starting in January. This small increase is a reflection of the lower inflation rate, but even modest improvements can make a significant difference for those living on a fixed income.

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