SSDI Beneficiaries Can Expect A Slight Cost-Of-Living Increase In 2025

On October 10th, the SSA announced that SSDI beneficiaries will receive a slight cost-of-living adjustment (COLA) to their monthly benefits for 2025. This increase is crucial for helping disability recipients keep up with inflation and maintain their purchasing power as living costs continue to rise. With inflation impacting everyday expenses in recent years, this adjustment gives some much-needed financial support to those who need it.

How Does The SSA Determine Cost Of Living Adjustments?

Each year, the Social Security Administration (SSA) calculates COLA using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). This measurement highlights the average change in prices for a “basket of goods” and services that consumers typically purchase purchase every month, such as:

• Transportation costs
• Food
• Housing
• Beverages
• Education
• Leisure activities

By comparing CPI-W averages from last year to now, the SSA can determine whether a COLA is necessary for SSDI beneficiaries to keep up with inflation.

How Much Will Benefits Increase In 2025?

SSDI recipients can expect a 2.5% increase in their monthly benefits in 2025. This new adjustment means that if you currently receive an average monthly benefit of $1,300, your new monthly amount would rise to $1,332.50. It’s slightly lower than last year’s 3.2% COLA boost, meaning inflation has slowed to normal levels. However, even a small increase helps beneficiaries manage their financial needs as the economy continues to change.

When Can SSDI Recipients See The New COLA?

The new COLA takes effect in January 2025. However, you can expect to see the adjustment in their checks as early as this December. If you’d like to learn more, check the SSA’s website for the latest updates, including when the new rates will become effective and when to expect the adjusted check.  

Will There Be SSDI Income Limit Changes?

Along with the COLA increase, income limits for SSDI recipients will also change in 2025. Beneficiaries will be allowed to earn up to $1,550 per month ($2,590 for blind recipients) without losing benefits. This is a slight increase from the current limit of $1,470 and gives you more flexibility to take on some part-time work while still maintaining your SSDI status.

Start Your SSDI Claim Today

Are you thinking about filing an SSDI claim or have questions about how these new COLA adjustments might affect you? Our experienced team of New York social security disability lawyers is here to help you. For decades, we’ve helped SSDI beneficiaries file their claim correctly and receive the benefits they deserve. Please complete our online form or call 877-693-2529 for a free consultation with one of our legal experts today.