Personal Finance

600 SSDI Increase: Upcoming 2.5% Disability Payment Boost for SSI and SSDI Recipients in 2025!

The Social Security Administration (SSA) has announced a 2.5% COLA increase in payments for 2025, aimed at helping beneficiaries cover growing expenses, especially during inflation.

600 SSDI Increase: You may be wondering if you will soon be getting a payment bump if you are receiving Supplemental Security Income (SSI), Social Security Disability Insurance (SSDI), or other similar benefits. The answer is “yes.” The annual Cost of Living Adjustment (COLA) is the reason why the Social Security Administration (SSA) just stated that payments will go up by 2.5% in 2025. So, what does that mean to you? Let us get more specific now.

The 2.5% COLA increase in 2025 is available to all Social Security recipients, such as those getting retirement, disability, or SSI payments. The main goal of the adjustment is to assist recipients in keeping up with growing expenses, especially in times of inflation.

SSDI Qualifications: How Long You Need to Work to Qualify for Disability Benefits

Even though the 2.5% increase isn’t as big as it was in past years (2023 had an 8.7% increase), many people will still be happy with it. There will be a $48% increase in the average monthly benefit, which adds up to almost $600 more in total each year.

The Senior Citizens League’s (TSCL) executive director, Shannon Benton, noted how much seniors rely on these services. “Our research shows that 67% of seniors rely on Social Security for more than half their income, and 62% worry their retirement income won’t even cover essentials like groceries and medical bills,” Benton stated. Not only are seniors experiencing financial hardship, but those on SSDI and SSI also significantly depend on these adjustments to cover their daily costs.

600 SSDI Increase: Social Security beneficiaries will receive larger benefits

It’s important to know that the Cost of Living Adjustment (COLA) is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). This index keeps track of changes in the prices of things and services that most people buy. But a lot of experts, including those at TSCL, think that the CPI-W doesn’t fully take into account the rising costs that disabled and older people face, especially medical costs. A new poll shows that 72% of older Americans believe Congress should change how COLA is figured to better reflect these problems.

2025 COLA SSDI Increase: What to Expect from the Upcoming Cost-of-Living Adjustment

By December 2024, if you are on SSDI or SSI, you should expect to receive a notice from the SSA outlining your exact increase beginning in January. To access these details online, you can also log onto your My Social Security account.

Thus, for the 72.5 million Americans receiving Social Security payments, even while the increase isn’t significant, it’s still a step in the right direction. Watch this space for further information, and remember to budget for the small increase in your monthly checks.

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