SSDI Update – These Disability Recipients Could Receive a $456 Annual Increase After the 2025 COLA Boost

The Social Security Administration (SSA) recently announced that Social Security Disability Insurance (SSDI) payments will rise by 2.5% in 2025. This Cost of Living Adjustment (COLA) was revealed on October 10 and, while the increase is smaller than the 10-year average of 2.6%, it still offers some financial relief to those receiving disability benefits. Let’s break down what this means for SSDI recipients.

Small Gains

While the 2.5% COLA boost might not seem like much, it could still help SSDI recipients cope with rising costs. On average, SSDI recipients receive about $1,539 per month, and with the 2.5% increase, they’ll see an additional $38 per month. That adds up to $456 extra over the course of a year.

For some, this increase will be essential to deal with the ongoing inflation and the higher cost of living. Even though the COLA adjustment falls just below the 10-year average of 2.6%, any increase is welcome when prices continue to climb for basic necessities.

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Get $456 More

Recipients who qualify for the average SSDI payment of $1,539 per month will receive an extra $38 per month. Multiply that by 12, and you get a total of $456 extra per year.

However, not everyone will receive this exact amount. The COLA increase depends on your current payment level. If you’re receiving a higher-than-average payment, your increase will be more substantial. For example, if you currently get $3,000 per month, your new payment will be $3,075, an increase of $75 each month. This adds up to $900 extra for the year.

For those with lower SSDI payments, the increase will be smaller. If you’re receiving only $800 per month, your payment will go up to $820 after the COLA boost, adding just $20 per month or $240 per year. Though not a large increase, every little bit helps when costs are rising.

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Payment Dates

The new COLA-adjusted SSDI payments will start rolling out in January 2025. The first payment will be issued on January 3, 2025, and will reflect the 2.5% increase. However, there are other payment dates depending on when you became eligible for SSDI.

For those who have been receiving SSDI since before May 1997, or those who are receiving both SSDI and Supplemental Security Income (SSI) payments, the payment will arrive on January 1, 2025. Note that SSI recipients will see their 2.5% increase slightly earlier, on December 31, 2024, due to the Federal holiday on January 1.

For all other SSDI recipients, payments will follow the typical schedule, with deposits arriving on January 8, 15, and 22, 2025, depending on the recipient’s date of birth.

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COLA Boost

This 2.5% increase is essential for SSDI recipients trying to keep pace with inflation. With the cost of food, healthcare, and housing on the rise, this extra money will provide some relief, especially to those who rely solely on disability payments for their income. Although the increase isn’t as large as some might hope, it’s still a necessary adjustment that reflects the broader economic situation.

Keep in mind that SSDI payments are not designed to fully replace the income that beneficiaries lose due to a disability, but the yearly COLA adjustments help maintain purchasing power.

While some recipients might wish for a bigger bump, every additional dollar counts when you’re living on a fixed income. The extra funds, although modest, will make a difference, especially over the course of the year.

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In summary, SSDI recipients can expect a 2.5% boost in their benefits starting in January 2025. While the increase might be smaller than in previous years, it will still provide some much-needed support.

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