In due course, the US Government will approve a new COLA to SSDI benefits for SSDI beneficiaries, so to preserve the recipient’s purchasing power, SSDI payments have been increased on 2025 COLA SSDI Increase Date. The SSDI payment levels are updated annually by Social Security due to the impact of inflation on the prices of goods and services.
So to ensure that Social Security benefits remain valuable even as prices increase, the COLA, are essential in helping retirees keep up with inflation. The Social Security Administration (SSA) determines the percentage increase by calculating inflation using data from the CPI and announces these changes every October.
2025 COLA SSDI Increase Date
On January 3, the first SSDI payment will be made. Disability beneficiaries won’t be able to take advantage of their 2025 COLA increase until after that date. About 2.5% will be applied as the cost of living adjustment. On October 10, Social Security will make the announcement, but this is merely a projection from the Senior Citizens League. Accordingly, you may receive an additional $25 if your payment in 2024 is worth $1,000, or $50 if it is worth twice as much.
Experts such as those from The Senior Citizens League predict that the COLA in 2025 will be approximately 2.5%. Even if this is less than in previous years, it is however a necessary raise for retirees. In 2024, for example, the COLA was 3.2%, which significantly increased monthly payments. Following a 5.9% increase in 2022, the adjustment increased even further in 2023, reaching 8.7% the biggest increase since 1981.
The main cause of these larger percentages in 2021 and 2022 was the sharp rise in inflation rates, which resulted in a major increase in the price of goods and services. This is a significant decrease from the extremely high rates of inflation of the last few years and indicates that COLA rates are heading back toward more normal levels. The 2.5% projection for 2025 reflects the historical pattern of an average COLA of about 2.4%.
When will i get your extra disability payment?
The COLA becomes effective on December 1 of the same year after it is determined but, you won’t really notice this rise in benefits until your December payment is made on the first working day of January. Every year at this same time, beneficiaries will notice the adjusted amount in their Social Security payments in January.
Thus, if you get Social Security benefits, remember to keep an eye out for the increased payment amount in January 2025. The COLA adjustment is an essential tool for retirees to handle growing prices and preserve their level of living, even though it may appear small in comparison to the previous few years.
SSDI beneficiaries will not get the increase until January 2025, although beneficiaries of SSI will get their COLA-adjusted payment on December 31, 2024. Based on birth dates, the following is a breakdown of SSDI payout dates for January 2025:
- The first 2025 payment will be sent to those who started receiving benefits prior to May 1997 or who receive both SSI and SSDI on January 3, 2025.
- Payments to beneficiaries born between January 1st and January 10th will get on January 8, 2025
- Payments for beneficiaries born between 11th and 20th will get on January 15, 2025
- Benefit payments for beneficiaries born born between the 21st and 31st will be made on January 22, 2025.
Why the 2025 COLA Matters for SSDI Recipients
The COLA boost’s primary goal is to shield SSDI beneficiaries from inflation-related loss of buying power. The Social Security Administration modifies benefit levels annually to make sure beneficiaries can pay for necessities such as housing, food, and medical care. These modifications become increasingly important as inflation rises.
The Senior Citizens League has estimated a 2.5% increase in COLA for 2025; however, this is only an estimate. In October 2024, Social Security will formally declare the ultimate COLA percentage. Because of this rise, SSDI beneficiaries will experience a tiny increase in their income, which might have a significant impact on how they manage the rising cost of living.
Impact of COLA on SSDI Recipients
The COLA increase benefits more people than only SSDI recipients. Your Supplemental Security Income (SSI) will be increased if you also get it. All Social Security beneficiaries will be able to keep up with inflation thanks to the 2025 COLA adjustment, which is applicable to all programs. As there will be holiday on January 1, 2025 so the payments will be shared on December 31, 2024. For many who depend on SSI, this payment will represent the recent COLA boost and offer much-needed financial relief.
As per the Senior Citizens League, a rise in COLA of 2.5% is possible. This most recent estimate is less than the amount provided the month before. As a result, when inflation declines, it keeps falling. As a result, starting in January 2025, SSDI beneficiaries may get additional funding. Remember that benefits won’t rise until the next year, even though they will be revealed next month. December 31, 2024, is the only day when SSI beneficiaries will get their January payment because January 1 will be a holiday. Additionally, the following paydays will be part of SSDI’s payment schedule in January:
- January 3, 2025 Disability Insurance payment: on SSI and SSDI concurrently or beneficiaries who received benefits prior to May 1997
- Disability Insurance benefits on January 8, 15, and 22 for ages 1–10, 11–20, or 21–31, correspondingly