The Social Security Administration (SSA) provides benefits for retirement and Social Security Disability Insurance (SSDI), while the federal government funds the Supplemental Security Income (SSI) program.
These programs help support Americans, especially those with disabilities, seniors, and those with limited income. However, each program offers different amounts and types of support.
This article explores the differences between SSI, SSDI, and retirement benefits, focusing on their maximum amounts, how they change after the annual cost-of-living adjustment (COLA), and what it means for recipients.
Key Differences Between SSI, SSDI, and Retirement Benefits
The SSI program is for people with low income, disabilities, or those 65 and older. It provides the least amount of financial support compared to SSDI or retirement benefits.
SSI is funded by the federal government, while SSA-funded programs like SSDI and retirement benefits come from workers’ contributions to the SSA’s Trust Fund.
Maximum SSI Payments for 2024
- Individuals: $943 per month
- Married Couples: $1,415 per month
- Essential Person: $472 per month
In 2025, these amounts will slightly increase due to the COLA.
Impact of COLA on SSI Payments
The Cost of Living Adjustment (COLA) increases SSI payments every year to help recipients keep up with inflation.
For example, in 2024, SSI recipients will see an increase of $24 for individuals and $35 for couples.
However, even with this increase, SSI payments remain much lower than those for retirement or SSDI beneficiaries.
SSDI and Retirement Benefits After COLA
While SSI recipients may see only a small increase, SSDI and retirement recipients will get more. In 2024, SSDI recipients can receive up to $3,822, with an average of $1,539 per month.
Retirement beneficiaries will see an average increase of about $50, bringing the average monthly retirement check to $1,927 in December and $1,976 in January after COLA.
Comparison of COLA Increases
After COLA, SSI recipients may see an increase of just $24 for individuals and $35 for couples, while SSDI recipients will get an additional $38, and retirement recipients will receive $50.
This shows that those receiving higher amounts, like SSDI and retirement benefits, get a bigger boost from COLA than SSI recipients.
The SSI program provides essential support for those in need but offers the smallest financial benefit compared to SSDI and retirement programs.
While the annual COLA increase helps all recipients, the impact is more significant for those receiving higher payments.
It’s important for individuals to understand the differences between these programs to manage their expectations and plan for their financial future.
What is the difference between SSI and SSDI?
SSI is for individuals with low income or disabilities, funded by the federal government. SSDI is for individuals who have worked and paid into Social Security but are now unable to work due to a disability.
How much will SSI increase in 2025?
SSI payments will increase by about $24 for individuals and $35 for married couples in 2025 after COLA.
Why do SSDI and retirement recipients get higher COLA increases than SSI?
The COLA increase is based on the amount of the payment, so those receiving higher amounts, like SSDI and retirement benefits, see a larger increase.
How much does the average retirement check increase after COLA?
The average retirement check will increase by about $50, reaching $1,927 in December and $1,976 in January.
What are the maximum amounts for SSI in 2024?
The maximum amounts for SSI are $943 for individuals, $1,415 for married couples, and $472 for an essential person in 2024.
