SSI 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. Experts at the League have a solid track record in making accurate predictions, which can help Supplemental Security Income (SSI) recipients gauge their future payments.
Understanding SSI Payments
Supplemental Security Income is designed for low-income individuals who are disabled, blind, or at least 65 years old. For those eligible, payments can reach up to $943 per individual. If you do not currently receive these benefits but fit into one of these categories, it may be worthwhile to apply.
The 2025 COLA Projection
According to the Senior Citizens League, a 2.5% COLA increase for Social Security benefits is anticipated. As a result, SSI recipients can expect a similar boost in their payments. However, the inflation rate for September will play a critical role in confirming this projection.
If inflation rates remain stable, it is likely that this COLA projection will come to fruition. Notably, the Senior Citizens League accurately predicted the 2024 COLA increase for Social Security benefits, further lending credibility to their forecasts.
Potential Impact of the 2025 COLA Increase
While a 2.5% increase in SSI may not seem substantial, it is certainly better than receiving no additional funds. For those receiving the maximum Supplemental Security Income, their benefits could rise from $943 to $966, resulting in an increase of approximately $23 per month. Over the course of a year, this adjustment translates to about $282 in extra income.
For eligible married couples who currently qualify for $1,415, the increase would bring their payments to around $1,450, yielding an additional $35 monthly.
Historical Context of COLA Adjustments
To put the projected 2025 COLA increase into perspective, the 2024 adjustment is set at 3.2%. This figure is lower than the recent high increases but still reflects inflation trends. The COLA for 2022 was a notable 5.9%, while 2023 saw an even higher adjustment of 8.7%, attributed to significant inflationary pressures.
Historically, COLAs averaged around 2% in the early 2000s, with no increases occurring in 2010, 2011, and 2016. The record-high COLA was 14.3% in 1980, coinciding with an inflation rate of 13.5%. Notably, in years when inflation is minimal or prices decline, such as in 2009, 2010, and 2015, no COLA is issued.
In summary, the anticipated 2.5% COLA increase for SSI in 2025 represents a modest yet important financial boost for recipients. With the continuing challenges of inflation, any additional funds can make a difference in the lives of those dependent on these benefits.
