As inflation continues to affect millions of Americans, the Social Security Administration (SSA) will soon announce a critical update to the Cost of Living Adjustment (COLA) for 2025. The anticipated COLA adjustment, projected for October 10, 2024, aims to help low-income beneficiaries, including survivors, retirees, and disabled individuals, keep up with rising living costs.
What is the COLA adjustment?
The COLA is a yearly adjustment made by the SSA to help Social Security payments keep up with inflation. This adjustment is determined by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Historically, the SSA announces the COLA each October, and the adjustment is applied to benefits starting in January of the following year.
The projected increase for 2025 is about 2.5%, which would mark a smaller adjustment compared to the 3.2% increase received in 2024. Despite its modest size, the increase is still critical for many beneficiaries who rely on Social Security as a significant part of their income.
SSDI and Supplemental Security Income (SSI) beneficiaries
For those receiving Supplemental Security Income (SSI), an increase in payments is also expected as early as December 2024. SSI provides financial assistance to disabled adults and children with limited income and resources. Individual recipients could receive up to $943 per month in 2025, while couples may get up to $1,415 monthly, depending on their income and assets. Additionally, some recipients classified as Eligible Persons (EP) could see an extra $472 monthly.
Notably, since January 1, 2025, falls on a holiday, SSI recipients will receive their first COLA-increased payment on December 31, 2024, ensuring they have the funds available as the new year begins.
Survivors and blind recipients
Survivor benefits, which are paid to the surviving spouses and children of deceased workers, will also see increases due to COLA adjustments. According to projections, a 2.5% COLA increase would raise monthly survivor benefits by an average of $38 to $44, depending on individual circumstances.
- For individual survivors, the monthly payment, currently $1,773, would rise to $1,817, meaning an extra $44 per month.
- For a family with two children receiving survivor benefits, payments could increase from $3,653 to $3,744, providing an additional $91 per month.
| Survivor benefits | Social Security checks | 2.5% COLA increase | Extra income |
| On average | $1,505 | $1,543 | $38 |
| Individual | $1,773 | $1,817 | $44 |
| 2 children | $3,653 | $3,744 | $91 |
