Supplemental Security Income (SSI) is a critical program offered by the Social Security Administration (SSA) for individuals who are low-income, aged 65 or older, blind, or unable to work due to medical conditions. Unlike other Social Security programs, SSI does not require recipients to have paid Social Security taxes.
Instead, it’s designed to provide financial relief to those who meet the necessary income and resource thresholds. For anyone already receiving SSI, there is some news about the upcoming increase in payments.
COLA Increases
The Cost-of-Living Adjustment (COLA) for 2025 is set to offer a small increase for SSI recipients. Forecasts by the Senior Citizens League predict a modest 2.63% rise in benefits. While any increase helps, many beneficiaries might feel underwhelmed, especially when compared to the larger COLA adjustments seen in recent years.
In 2024, the COLA increase was 3.2%, while 2023 saw an impressive 8.7% hike due to higher inflation rates. The smaller 2025 increase can be attributed to slowing inflation, which stabilizes prices but leads to more conservative COLA raises.
SSI Payments Increase
Let’s break down how much more SSI recipients can expect in 2025. With the anticipated 2.63% increase, the average monthly SSI payment, which is currently around $698, will rise by approximately $18, bringing the total to $715 per month. Over the course of a year, this adds an extra $216.
Here’s a breakdown of how the COLA increase will impact different beneficiaries:
| Payment Type | Current SSI Checks | 2.63% COLA Increase | Extra Monthly Income |
|---|---|---|---|
| On Average | $698 | $716 | $18 |
| Individuals | $943 | $968 | $25 |
| Couples | $1,415 | $1,452 | $37 |
| Essential Person | $472 | $484 | $12 |
It’s important to note that actual increases will vary depending on each individual’s or couple’s current benefit amount.
Historical Perspective
COLA adjustments are calculated based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which tracks inflation. The final adjustment for 2025 won’t be determined until October 2024, so there’s still a chance the increase may change slightly.
Historically, COLA increases have fluctuated. For example, in years like 2010, 2011, and 2016, there was no adjustment at all. Meanwhile, the past few years have seen larger-than-average increases due to significant economic pressures, with a 5.9% increase in 2022 and 8.7% in 2023.
Social Security Benefits
In addition to SSI recipients, other Social Security beneficiaries will also experience an increase due to the COLA adjustment. This includes those receiving retirement, survivor, or Social Security Disability Insurance (SSDI) benefits. Below are some estimates of the new payment amounts for these groups:
| Benefit Type | Current Payments | COLA Increase | New Monthly Payments |
|---|---|---|---|
| Retirement Benefits | |||
| Average | $1,950 | 2.63% | $2,001 |
| Age 62 | $2,781 | 2.63% | $2,853 |
| Age 67 | $3,923 | 2.63% | $4,026 |
| Age 70 | $5,001 | 2.63% | $5,133 |
| Survivor Benefits | |||
| Average | $1,545 | 2.63% | $1,586 |
| Individual | $1,820 | 2.63% | $1,868 |
| Two Children | $3,749 | 2.63% | $3,847 |
| SSDI Benefits | |||
| Average | $1,577 | 2.63% | $1,619 |
| Blind Recipients | $2,658 | 2.63% | $2,728 |
| Maximum Payment | $3,923 | 2.63% | $4,026 |
These COLA adjustments, though smaller than recent years, provide some relief for those who depend on Social Security programs.
What’s Next?
While the expected 2.63% COLA increase for 2025 may not be the windfall many had hoped for, it still brings some financial relief. SSI beneficiaries, along with retirees, survivors, and SSDI recipients, should plan accordingly and keep an eye on the final announcement in October 2024 to confirm the exact increase. This modest bump in payments might not drastically change anyone’s financial situation, but it will help ease the burden of inflation just a bit.
FAQs
How much will SSI payments increase in 2025?
The anticipated increase is around 2.63%, resulting in an extra $18 for average recipients.
When will the 2025 COLA be finalized?
The final COLA for 2025 will be announced in October 2024.
What is the current average SSI payment?
As of now, the average SSI payment is about $698 per month.
Who qualifies for SSI payments?
Low-income individuals aged 65+, the blind, or those with medical disabilities can qualify.
Do SSDI recipients get COLA increases too?
Yes, SSDI beneficiaries will also see an increase based on the 2025 COLA.
