Millions of SSDI beneficiaries and retirees are set to receive a much-needed boost in their monthly benefits starting in 2025, thanks to the Social Security Administration’s (SSA) announcement of a 3.2% Cost-of-Living Adjustment (COLA) increase. This increase is designed to help these individuals keep up with rising costs in everyday expenses such as healthcare, food, and housing.
The COLA increase means that people who rely on Social Security Disability Insurance (SSDI) and Social Security retirement benefits will see their monthly payments rise by an average of $60 in 2025. This change will bring the average monthly Social Security retirement benefit to $1,788, providing more financial stability for seniors and people with disabilities who depend on these funds for their livelihood.
The 3.2% COLA increase is based on the inflation trends observed throughout 2024. While it is a smaller increase compared to the 8.7% boost given in 2023, it’s still a significant adjustment to help recipients cope with the increasing costs of living. For many, these benefits are the primary or sole source of income, and any increase is a welcome relief.
The new payment amounts will begin in January 2025, and the SSA has already updated its online portals so that recipients can check their expected benefit amounts. To access these details, individuals can log in to their mySocialSecurity accounts.
While the COLA boost will certainly help, it’s important to keep in mind that Medicare premiums may rise in 2025 as well, potentially offsetting some of the increased benefits. However, for many beneficiaries, even a smaller increase is a lifeline in the face of rising inflation.
The SSA also adjusted work-related income limits and monthly payment thresholds for those on SSDI who may be considering supplementing their income through employment in the new year.
Overall, the 2025 COLA increase provides financial relief to millions, ensuring that Social Security recipients are better able to cope with rising costs in the year ahead. Keep an eye out for updates by visiting the official Social Security Administration website or checking your mySocialSecurity account for personalized information.
