The Supplemental Security Income (SSI) program, run by the Social Security Administration (SSA), is designed to help people who are low-income, aged 65 or older, blind, or unable to work due to a medical condition. Unlike other Social Security benefits, SSI does not require people to have paid Social Security taxes to qualify. Instead, it’s based on the individual’s income and financial resources.
Every year, the SSA makes adjustments to SSI payments based on inflation. This adjustment is known as the Cost-of-Living Adjustment (COLA). In 2025, there will be a modest increase in SSI payments due to this COLA. In this article, we’ll explain how much this increase will be, when it will take effect, and what it means for SSI recipients.
What Is the 2025 COLA Increase for SSI?
The Cost-of-Living Adjustment (COLA) for 2025 is expected to bring a 2.63% increase in SSI payments. This increase is smaller than the adjustments seen in previous years but is still helpful. In 2024, the COLA was 3.2%, and in 2023, it was a larger 8.7% due to higher inflation rates.
The lower COLA for 2025 is because inflation has slowed down. While prices are still rising, they’re not going up as quickly as they did in recent years. This means that while SSI payments will go up, the increase will not be as large as in 2023 and 2024.
How Much Will SSI Payments Increase?
For the average SSI recipient, the 2.63% increase will mean getting about $18 more each month. Currently, the average SSI payment is about $698 per month. After the increase, this will rise to around $716 per month. Over a year, this adds up to about an extra $216.
For individuals and couples receiving SSI, the increase will vary depending on their current payments. Here’s a breakdown of the expected increases:
| Payment Type | Current Amount | New Amount (with 2.63% Increase) | Extra Monthly Income |
|---|---|---|---|
| Average Payment | $698 | $716 | $18 |
| Individual | $943 | $968 | $25 |
| Couple | $1,415 | $1,452 | $37 |
| Essential Person | $472 | $484 | $12 |
These increases will provide some extra financial support to help cover rising costs for things like groceries, rent, and utilities.
Why Does SSI Increase Each Year?
SSI payments increase every year through the COLA to help people keep up with inflation. Inflation is when the prices of everyday items like food, gas, and rent go up. Without the COLA, SSI recipients would have a harder time paying for these essentials because their payments would stay the same while prices rise.
The SSA calculates the COLA based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). This index tracks the price changes for goods and services. If inflation is high, like it was in 2023, the COLA will be larger. When inflation slows down, as expected in 2025, the COLA is smaller.
How Does the COLA Impact Other Social Security Benefits?
Besides SSI recipients, people who receive other Social Security benefits like retirement, survivor, and Social Security Disability Insurance (SSDI) benefits will also see an increase in their payments due to the COLA. Here’s how much different beneficiaries can expect to receive in 2025:
| Benefit Type | Current Payments | COLA Increase | New Monthly Payments |
|---|---|---|---|
| Retirement | $1,950 | 2.63% | $2,001 |
| Survivor | $1,545 | 2.63% | $1,586 |
| SSDI (Average) | $1,577 | 2.63% | $1,619 |
While the increase is small, it provides a little extra support for people who depend on these benefits.
What’s Next?
The final COLA percentage for 2025 will be officially announced in October 2024. Until then, the 2.63% increase is just an estimate, and there’s a chance the actual increase might be a little different.
Although the increase is modest, SSI recipients and others receiving Social Security benefits should plan for the extra funds. While it might not drastically change their financial situation, the additional income can help cover rising costs due to inflation.
The 2025 COLA increase for SSI is expected to be 2.63%, giving the average recipient about $18 more per month. While the increase is smaller compared to previous years, it will still provide some financial relief for people who depend on SSI. It’s important for recipients to keep an eye on the final COLA announcement in October 2024 to confirm how much their payments will rise.
This annual COLA adjustment helps ensure that SSI and other Social Security benefits keep pace with inflation, making it easier for recipients to afford their basic needs.
