The Social Security Administration (SSA) has announced a Cost of Living Adjustment (COLA) increase for 2025, providing financial relief to people receiving Supplemental Security Income (SSI).
This change boosts monthly payments for individuals, married couples, and essential persons, ensuring their benefits keep pace with inflation.
Additionally, new thresholds for disability payments and student exclusions have been set.
What is the 2025 COLA Adjustment?
The COLA increase is a raise in benefits to match inflation, ensuring recipients maintain their purchasing power. Here’s how the 2025 changes impact SSI and Social Security payments:
New Maximum SSI Payment Amounts for 2025
After the 2025 COLA increase:
- Essential Persons: $484 (up from $472)
- Individuals: $967 (up from $943)
- Married Couples: $1,450 (up from $1,415)
If you receive less than the maximum amount, the COLA increase adds $2.50 for every $100 in benefits. For example:
- A $500 payment becomes $512.50.
- A $900 payment becomes $922.
SSI Student Exclusion Updates
The SSI student exclusion allows certain earned income to be excluded from benefit calculations:
- Monthly cap: $2,350 (up from $2,290).
- Annual cap: $9,460 (up from $9,230).
These changes help students receiving SSI keep more of their benefits while attending school.
New Disability Payment Thresholds
For people receiving disability payments:
- Non-Blind Substantial Gainful Activity (SGA): $1,620/month (up from $1,550).
- Blind SGA: $2,700/month (up from $2,590).
- Trial Work Period (TWP): $1,160/month (up from $1,110).
Exceeding these limits may affect eligibility or payment amounts.
Payment Schedule Adjustments
SSI recipients will see their increased payments on December 31, 2024, instead of January 1, 2025, due to federal holidays. Social Security recipients will receive their adjusted payments starting January 3, 2025.
The 2025 COLA changes bring significant improvements to SSI and Social Security benefits, ensuring better financial stability for beneficiaries.
These updates also encourage students and individuals with disabilities to pursue education and work opportunities without jeopardizing their benefits.
What is COLA?
COLA stands for Cost of Living Adjustment, a yearly increase in benefits to account for inflation.
When will I receive the new payments?
SSI recipients will get their adjusted payment on December 31, 2024. Social Security recipients will receive payments starting January 3, 2025.
How much will my benefits increase?
For every $100 in benefits, you’ll receive $2.50 more after the COLA adjustment.
What is the SSI student exclusion cap for 2025?
The monthly cap is $2,350, and the annual cap is $9,460 after the COLA increase.
Will working affect my disability benefits?
Yes, exceeding the SGA thresholds ($1,620 for non-blind individuals and $2,700 for blind individuals) may impact your eligibility or payment amounts.
