Not all Americans will receive the same amount of money after the 2025 COLA increase for Social Security retirement, SSDI, and SSI payments in the United States.
The Senior Citizens League made an important announcement back in September revealing that the 2025 COLA increase could be just about $2.5%. In fact, it is bad news for those who expected a large boost in their monthly payments.
Who will receive the least money from the 2025 COLA for Social Security and SSI benefits?
Mainly, there are 3 groups of Americans who will receive less money than the rest of the recipients. The reason why all these Americans will receive less money is because they have a low benefit.
- SSI recipients will get less money than many retirees receiving Social Security
- Social Security recipients on retirement benefits with a small check
- Social Security recipients on SSDI benefits with a small check
So if your payment is worth $500 dollars, after a possible 2025 COLA increase of just 2.5%, you will receive $512.5 next year. This boost is just worth 12.5 dollars. Whereas a recipient who gets $2,000 per month will get $50 extra per month.
The lower your Social Security or SSI check, the lower the boost will seem to be
SSI recipients can get up to $943 if they qualify for the maximum amount in 2024. However, after a COLA increase of just 2.5%, it will become $966.5, so it is only 23 dollars extra per month.
The thing is many SSI recipients do not qualify for the maximum amount because they are receiving retirement or SSDI payments too. For example, the average SSI payment is worth $698.
Thus their average payment would become $715. Actually, that is only 15 dollars extra per month check. Those who are aged 65 and older and receive SSI, receive an average payment worth $574, which is even lower. Their boost will only be 14 dollars extra per month.