Supplemental Security Income (SSI) is a vital program provided by the Social Security Administration (SSA) to help those who are low-income, aged 65 or older, blind, or unable to work due to a disability. Unlike other Social Security benefits, SSI doesn’t require recipients to have paid Social Security taxes. Instead, it focuses on offering financial assistance to those who meet specific income and resource limits.
For those already receiving SSI, there’s news about a payment increase coming soon.
Cost-of-Living Adjustments (COLA)
The Cost-of-Living Adjustment (COLA) for 2025 is expected to bring a small increase for SSI recipients. The Senior Citizens League predicts a 2.63% rise in benefits. While any increase is helpful, some may find it disappointing compared to recent years. For example, in 2024, the COLA increase was 3.2%, and in 2023, it was a significant 8.7%, largely due to higher inflation. The smaller 2025 increase reflects slowing inflation, which has kept prices more stable, resulting in smaller COLA adjustments.
SSI Payment Increase
Let’s break down what this means for SSI recipients. With a 2.63% increase, the average monthly SSI payment, which is currently around $698, will rise by about $18, bringing it to roughly $715 per month. Over the year, this adds up to an extra $216.
Here’s a snapshot of how different groups may be affected:
Payment Type | Current SSI Checks | 2.63% Increase | Extra Monthly Income |
---|---|---|---|
Average Recipient | $698 | $716 | $18 |
Individuals | $943 | $968 | $25 |
Couples | $1,415 | $1,452 | $37 |
Essential Person | $472 | $484 | $12 |
It’s important to remember that the actual increase will depend on each person or couple’s current benefits.
A Look at COLA History
COLA adjustments are based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which tracks inflation. The final adjustment for 2025 will be confirmed in October 2024, so the increase could still change slightly.
Historically, COLA increases have varied. In 2010, 2011, and 2016, there were no increases at all. However, recent years have seen larger increases due to economic pressures—5.9% in 2022 and 8.7% in 2023.
Social Security Benefits
Other Social Security beneficiaries, including those receiving retirement, survivor, and Social Security Disability Insurance (SSDI) benefits, will also experience increases due to COLA. Below are estimated 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 |
Although the 2025 COLA increase is smaller than in recent years, it still offers some financial relief for people depending on Social Security.
Looking Ahead
While the expected 2.63% COLA increase in 2025 may not be as large as some hoped, it still offers some help. SSI recipients, along with retirees, survivors, and SSDI beneficiaries, should keep an eye out for the final announcement in October 2024 to confirm the exact increase. Though modest, this bump in payments will help ease the pressure of inflation.
FAQs
- How much will SSI payments increase in 2025?
The expected increase is about 2.63%, resulting in an extra $18 for the average recipient. - 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?
Right now, the average SSI payment is around $698 per month. - Who qualifies for SSI payments?
Low-income individuals aged 65 or older, people who are blind, or those with disabilities can qualify. - Do SSDI recipients get COLA increases too?
Yes, SSDI recipients will also see an increase based on the 2025 COLA.
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