SSI BIG UPDATE: This is how Social Security’s 2025 COLA may affect payments in the US
The Senior Citizens League has announced a new and updated projection for the Cost-of-Living Adjustment (COLA) for Social Security benefits, offering insights for Supplemental Security Income (SSI) recipients regarding their future payments.
Understanding SSI and Its Eligibility
Supplemental Security Income (SSI) payments are designed to assist low-income Americans who are disabled, blind, or at least 65 years old. Individuals eligible for SSI can receive payments of up to $943. If you do not currently receive these benefits but fit the eligibility criteria, you may want to consider applying.
2025 COLA Projections for SSI Recipients
According to the Senior Citizens League, there is a possibility of a 2.5% COLA increase for Social Security benefits, which would also apply to SSI payments. However, the final increase hinges on the inflation data for September. Historically, the Senior Citizens League has been accurate in its projections, as seen with the 2024 COLA increase.
While a 2.5% increase may seem modest, it is certainly preferable to receiving no additional funds at all. Moreover, a cut in benefits would have been much more detrimental for recipients.
Projected SSI Benefits After the 2025 COLA Increase
If the projected 2.5% COLA is implemented, individuals receiving the maximum SSI benefit could see their payments rise from $943 to approximately $966—a $23 increase. Over the course of a year, this translates to an additional $282, which can significantly impact financial stability.
For married couples eligible for SSI who currently receive $1,415, their benefits could increase to around $1,450, resulting in an extra $35 each month.
Comparing Current COLA Increases to Previous Years
The COLA increase for 2024 is set at 3.2%, which, while lower than the previous two years, remains above the averages seen in the early 2000s.
In 2022, the COLA was 5.9%, and in 2023, it surged to 8.7%—the highest levels since the early 1980s, driven by rampant inflation. The 3.2% adjustment for 2024 reflects a significant decrease from the spikes of 2022 and 2023 but aligns more closely with current inflation trends.
Historically, COLAs averaged around 2% per year during the early 2000s, with no benefit increases recorded in 2010, 2011, and 2016. The highest COLA recorded was 14.3% in 1980, coinciding with inflation levels of 13.5%. In contrast, years of very low inflation, such as 2009, 2010, and 2015, resulted in no COLA adjustments at all.
