SSI BIG UPDATE:: This is how Social Security’s 2025 COLA may affect payments in the US
The Senior Citizens League has released an updated projection for the Cost-of-Living Adjustment (COLA) for Social Security benefits, providing valuable insight for Supplemental Security Income (SSI) recipients regarding their future payments. The organization’s predictions are generally reliable, allowing those eligible to gauge what they might expect moving forward.
Understanding Supplemental Security Income (SSI)
Supplemental Security Income (SSI) provides financial support to low-income Americans who are blind, disabled, or aged 65 and older. If you are not currently receiving SSI payments, which can be up to $943 for individuals, you may want to consider applying if you meet these criteria.
2025 COLA Projection for SSI Recipients
According to the Senior Citizens League, SSI recipients can expect a 2.5% COLA increase for Social Security benefits in 2025. While the final adjustment will depend on inflation data from September, the current projections indicate a likely increase. The Senior Citizens League accurately predicted the 2024 COLA increase, lending credibility to their forecasts.
A 2.5% increase in SSI may seem modest, but it’s certainly better than no increase at all. Moreover, it would be far more concerning if there were cuts to benefits.
Potential Changes in SSI Payments Post-COLA
If you receive the maximum SSI benefit amount, your payments could rise to $966 from the current $943, an increase of $23. Over the course of a year, this 2.5% increase would equate to an additional $282, providing essential financial relief, even if the percentage seems small.
For eligible married couples receiving $1,415 per month, the projected increase would bring their total to approximately $1,450, resulting in an extra $35 each month due to the COLA adjustment.
Comparing Current Projections to Previous Years
The 2024 COLA increase was set at 3.2%, which, while lower than recent peaks, remains above historical averages.
- In 2022, the COLA was 5.9%.
- In 2023, it reached 8.7%, marking the highest increases since the early 1980s, driven by surging inflation.
In contrast, the 3.2% COLA for 2024 reflects a significant decrease compared to the prior years’ spikes but aligns more closely with recent inflation trends.
Historically, the average COLA in the early 2000s hovered around 2% per year, with no increases recorded in 2010, 2011, and 2016. The highest COLA on record was 14.3% in 1980, when inflation soared to 13.5%. Conversely, in years of low inflation or deflation, such as 2009, 2010, and 2015, no COLA was issued.
