Supplemental Security Income (SSI) recipients in the United States will see an increase in their payments starting December 31, 2024, thanks to the 2025 cost-of-living adjustment (COLA). This increase, set at 2.5%, aims to help beneficiaries keep up with rising living costs. Here’s everything you need to know about the COLA adjustment, payment schedules, and eligibility requirements.
COLA Payment
SSI payments are typically distributed on the first of the month. However, when January 1 falls on a federal holiday, payments are sent out earlier. For January 2025, payments will be issued on December 31, 2024, ensuring beneficiaries receive their funds without delay.
New SSI Payment Amounts
The COLA increase boosts SSI payments by 2.5%, which translates to higher monthly checks for recipients.
Updated Payment Amounts:
- Individual Recipients: Maximum payment increases from $943 to $967.
- Eligible Married Couples: Maximum payment rises from $1,415 to $1,450.
- Essential Persons (Caregivers): Payment increases from $472 to $484.
Different SSI Payment Levels:
| Current Payment | COLA Increase (2.5%) | New Payment Amount |
|---|---|---|
| $100 | $2.50 | $102.50 |
| $200 | $5.00 | $205.00 |
| $300 | $7.50 | $307.50 |
| $400 | $10.00 | $410.00 |
| $500 | $12.50 | $512.50 |
| $600 | $15.00 | $615.00 |
| $700 | $17.50 | $717.50 |
| $800 | $20.00 | $820.00 |
| $1,000 | $25.00 | $1,025.00 |
Who Qualifies for SSI?
To qualify for SSI, individuals must meet specific income and resource requirements and one of the following conditions:
- Be at least 65 years old.
- Have a qualifying disability.
- Be blind.
SSI is particularly beneficial for those with low or no resources, offering a supplemental income to cover essential expenses. It’s also a valuable addition for individuals receiving low Social Security retirement or SSDI benefits.
How the COLA Is Calculated
The annual COLA adjustment is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
COLA Adjustments:
- Calculated annually based on the percentage increase in the CPI-W from the third quarter of the previous year to the third quarter of the current year.
- If there’s no increase in the CPI-W, there’s no COLA adjustment.
- Announced each October, the COLA takes effect with December benefits, which are paid in January.
For 2025, the 2.5% COLA will begin with December 31, 2024, payments. Beneficiaries are typically notified of their new payment amounts in early December via mail or their my Social Security account.
Preparing
- Check Your Payment Amount: Log in to your my Social Security account to view your updated benefit notice online in early December.
- Budget for January: Remember, the December 31 payment is for January 2025 expenses. Plan your finances accordingly.
- Update Your Information: Ensure your contact details and bank information are current with the SSA to avoid payment delays.
FAQs
What is the 2025 COLA increase for SSI?
The 2025 COLA increase is 2.5%, effective December 31, 2024.
Why is the payment due on December 31, 2024?
January 1, 2025, is a federal holiday, so payments are sent earlier.
What is the new maximum SSI payment for individuals?
The maximum payment increases to $967 in 2025.
How is COLA calculated?
It’s based on the CPI-W increase from Q3 of the prior year to Q3 of the current year.
When will beneficiaries receive their COLA notices?
COLA notices are mailed in early December and available online via my Social Security.
