If you receive Social Security disability benefits, whether that’s Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI), a critical annual update is the Cost-of-Living Adjustment (COLA). This is when the Social Security Administration (SSA) reviews any changes in the cost of living for average families due to inflation and decides whether they will increase the monthly benefit amounts.
While the benefits amount is not guaranteed to increase each year, the SSA has increased disability benefits 9 out of the last 10 years, with the largest increase in 2023. That COLA increase was 8.7% that year, the largest in over 40 years.
How Much Will SSDI Go Up In 2025?
The 2025 Cost-of-Living Adjustment will be 2.5% higher than the 2024 benefit amounts. While this may not seem like much, every little bit helps when you are relying solely on your Social Security disability check each month for basic needs like housing, utilities, groceries and gas, as well as healthcare costs.
Below, we’ll outline what this means for you and provide tips on how you can maximize your disability benefits.
Social Security Disability Insurance (SSDI)
Assuming you qualify for disability benefits and depending on your lifetime earnings and how much you’ve paid into Social Security taxes, the SSA will determine your monthly benefit amount based on your Average Indexed Monthly Earnings (AIME), which is used to calculate your Primary Insurance Amount (PIA). The resulting number will be your estimated monthly SSDI benefit, before offsets or deductions.
While your actual benefit amount may be different, the maximum Social Security benefit will increase from $3,822 per month in 2024 to $4,018 per month in 2025, or $48,216 annually.
For individuals receiving SSDI, the Substantial Gainful Activity (SGA) levels will also rise slightly:
| 2024 | 2025 | |
|---|---|---|
| Non-Blind Substantial Gainful Activity (SGA) | $1,550/month | $1,620/month |
| Blind Substantial Gainful Activity (SGA) | $2,590/month | $2,700/month |
| Trial Work Period (TWP) | $1,110/month | $1,160/month |
These figures are vital if you’re testing your ability to return to the workforce or working part-time. It’s important that you carefully monitor your monthly income and do not exceed the limits set by the SSA, or you could lose your benefits.
Supplemental Security Income (SSI)
SSI is a needs-based program and limits the assets someone can have while receiving benefits. The 2.5% COLA increase to the monthly benefit amount for SSI applies to individuals and couples, however the asset limits remain unchanged at $2,000 for an individual and $3,000 for a couple.
| 2024 | 2025 | |
| Payments for Individuals | $943/month | $967/month |
| Payments for Couples | $1,415/month | $1,450/month |
The SSI Student Exclusion now allows a student to exclude up to $2,350 per month in 2025, up from $2,290 per month in 2024.
Making the Most of Your 2025 Benefits
- Review Your Benefit Letter or “mySocialSecurity” Account
- The SSA typically sends out notices in the fall with updated benefit amounts. You can also log in to your mySocialSecurity account to see your new monthly payment.
- Verify Assistance Eligibility
- When Social Security payments increase, there may be an impact on other income-based programs like Medicaid or Food Stamps (SNAP). It’s important to verify if you still qualify following the COLA increases.
- Review Your Budget
- Once the new payment amounts begin for the year, you may be able to make adjustments in your spending for your monthly living expenses.
- Watch Earnings Limits
- If you’re attempting to return to work, be mindful of the new SGA levels .
Frequently Asked Questions
When do the COLA increases start?
Benefits paid in January 2025 will reflect the new rate. You’ll typically see the increase in your February 2025 payment.
How do I know if my benefit amount is correct?
Log into your “mySocialSecurity” account or wait for the mailed notice from the SSA. If the number seems off, contact the SSA or speak with a qualified representative.
Could my SSI eligibility change if my monthly benefit goes up?
Yes, if you’re near the SSI income/resource limits, an increase could affect your benefit.
Conclusion
While it’s challenging to plan ahead on a limited budget, it is helpful to know what your benefit payments will be in the coming year, along with increased thresholds on assets and income limits. Knowing your options is key if you are planning to return to work through the Trial Work Program or part-time employment within the new SGA limits.
If you have questions about whether you qualify for disability benefits, contact a qualified Social Security Disability lawyer or disability advocate.
