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The Cost-of-Living Adjustment (COLA) for those receiving Social Security Disability Insurance (SSDI) and/or Supplemental Security Income (SSI) will be 2.5 percent in 2025.
The COLA is different each year, depending on how much more expensive it is for the average person to buy groceries and other necessities as compared with the year before.
Our Social Security Disability lawyers can help you better understand what this increase in benefits means for you and how to apply for the benefits you need in the coming year.
2025 COLA Dollar Value Increase
According to the Social Security Administration (SSA), the average monthly payment for a disabled worker in 2024 was $1,542. A 2.5 percent increase would raise this amount to $1,580 every month.
However, not everyone receives the average monthly payment. You can calculate the specific increase to your SSDI benefits with this formula:
Your 2024 monthly payment x the 2025 COLA increase for SSDI (0.025) = Monthly increase
The resulting number is the amount by which your monthly benefit will increase each month. Add this amount to your 2024 monthly payment to complete the calculation and arrive at your new dollar amount. You may also speak with an SSDI lawyer at our firm to discuss the changes with a professional.
How the SSA Determines COLA Increases
The Social Security COLA varies from year to year. For example, in 2021, there was an increase of only 1.3 percent, according to the SSA.
The SSA bases COLA changes on fluctuations in the Consumer Price Index (CPI-W). The information in the CPI-W comes from the U.S. Bureau of Labor Statistics (BLS).
Generally, the agency looks at statistics from the previous year’s third quarter into the current year’s third quarter. It takes into account the average cost of goods and services that most, if not all, people must purchase on a regular basis, including:
- Groceries
- Gas for your vehicle and your home
- Clothes
- Rent or mortgage payments
- Medical care
- Electric bills
Inflation rates have remained high over the past several years. Rising inflation increases the costs of groceries and other items. As the annual cost of living goes up, so does the amount you receive in Social Security Disability benefits per month.
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How the SSDI COLA Increase for 2025 Affects Other Beneficiaries
The COLA impacts more than just 2025 SSDI payments. If you or someone you love is receiving any sort of benefit through the SSA or is looking to apply in the coming year, our Disability attorneys can help you figure out how much you are entitled to and guide you through the application process.
COLA and Retirement Benefits in 2025
Individuals who receive retirement benefits through the Social Security Administration will also see their monthly payments increase. The SSA uses the same Cost-of-Living Adjustment (2.5 percent) for individuals receiving retirement benefits.
Retired workers do not all receive the same benefits every month. Your benefits depend, among other things, on how old you are when you retire. For example:
- The longer you wait to start receiving retirement benefits, the more your monthly payment will be.
- If a 70-year-old retired in 2024, they could receive a maximum of $3,822 a month, or $45,864 per year.
- After the 2025 COLA adjustment, a 70-year-old retiring in 2025 could receive up to $4,018 a month, or $48,216 a year.
Benefits and Changes Associated with Medicare in 2025
Medicare premiums also rose in 2025. Therefore, your insurance check may actually become smaller if you have your premiums automatically deducted. According to the Centers for Medicare and Medicaid Services (CMS), premium increases depend on:
- Which Medicare benefits you are paying for (A, B, C, or D)
- Your income
- Your filing status
We understand that not everyone has the same Medicare program. The coverage you selected will determine the amount of money taken from your benefits to cover the program.
When does COLA Go into Effect for 2025?
The Social Security Administration begins applying COLA changes to SSDI and other benefits at the beginning of the new year, so the 2025 changes went into effect in January 2025. You should therefore notice an automatic increase starting with your first payment of the year.
Note that the SSA does not send out benefit checks on the same day of the month for everyone. You may receive your benefits:
- On the second Wednesday of every month if you were born on the 1st-10th
- On the third Wednesday of every month if you were born on the 11th-20th
- On the fourth Wednesday of every month if you were born on the 21st-31st
COLA changes should not impact the date that you receive your SSDI benefits. Checks should continue to arrive as normal despite any adjustments.
What if There is a Problem with Your SSDI Payments?
If you run into any issues with your Disability benefits—for example, if you think your COLA was not calculated properly or if the SSA has incorrectly stopped payments—you can talk to our Social Security Disability attorneys. We understand how the annual increase in payments should and should not affect your monthly check, and we can:
- Calculate how much you are entitled to receive based on your circumstances
- Communicate with the SSA to iron out any disagreements or misunderstandings
- Appeal unfair denials and represent you at all necessary meetings and hearings
- Explain more about what the annual COLA means for you, your benefits, and your family
Learn More About the COLA for Your Social Security Benefits
The 2.5 percent COLA for SSDI in 2025 is designed to address concerns regarding rising inflation. You can learn more about how this increase impacts you by speaking with our legal team. We assist those who depend on Social Security and Supplemental Security benefits.
The team at Farmer & Morris Law, PLLC, would be happy to discuss SSDI benefits, COLA increases, and related topics with you. Call today to start with a free consultation.
