According to the latest updates from the Social Security Administration (SSA), some retirees and beneficiaries of Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI) programs will receive a monthly check of up to $967 in 2025. This increase is the result of a recently announced 2.5% Cost-of-Living Adjustment (COLA) by the SSA.
If you receive or qualify for retirement, survivor, disability, or SSI benefits, it’s important to stay informed about the specifics of this new payment and the eligibility criteria you need to meet.
Official payment dates for the new $967 check
For those relying on Supplemental Security Income (SSI), the increase already has official payment dates. This program, which supports more than 7.5 million Americans, will see adjustments as a result of the COLA starting next year. Here’s how payments will look after the 2.5% increase:
- Individuals: The monthly payment will rise from $943 in 2024 to $967 in 2025.
- Eligible married couples: Payments will increase from $1,415 in 2024 to $1,450 in 2025.
- Essential persons: These individuals will see an increase from $472 in 2024 to $483 in 2025.
SSI, managed by the Social Security Administration, provides financial support to low-income individuals, older adults, and children with disabilities. The upcoming payment dates for SSI beneficiaries are November 1 and November 29, the latter being an early payment for December, since the regular date falls on a weekend. Additionally, another early payment will be issued on December 31, covering the January 2025 benefits due to year-end holidays.
How will the COLA affect other Social Security beneficiaries?
In addition to SSI, the SSA offers monthly payments to beneficiaries of the Retirement, Survivors, and Disability Insurance (RSDI) program. This includes retirees, disabled individuals, and survivors of deceased workers. The amount each person receives from this program depends on several factors, including full retirement age (FRA), work history, and contributions to Social Security over the years.
Once someone is accepted into the program, the SSA calculates their monthly payment based on these factors, and this amount is adjusted annually to keep up with inflation. This adjustment is especially critical in periods of high inflation, where the COLA ensures that people with fixed incomes, such as retirees, don’t lose purchasing power over time.
Impact of the COLA on Social Security programs
The primary goal of the Cost-of-Living Adjustment (COLA) is to offset the impact of inflation on the incomes of people who rely on Social Security. Without this adjustment, the purchasing power of beneficiaries would steadily decline each year, making it harder for them to meet basic needs and increasing the risk of poverty in this vulnerable population.
Since 1975, the COLA has been applied regularly to prevent Social Security benefits from losing value over time. Prior to that, any increases required legislative approval. The automatic application of the COLA helps ensure that Social Security beneficiaries receive adequate support without needing to wait for political processes to align.
Other changes stemming from the COLA
The Cost-of-Living Adjustment doesn’t just affect the amount of money individuals receive. It also influences other significant factors within Social Security programs. For instance, the maximum income a person with a disability can earn without losing their benefits, known as Substantial Gainful Activity (SGA), is adjusted in line with each COLA increase.
Similarly, the income and resource limits that a person or family must meet to be eligible for SSI are updated, as is the value of each Social Security credit.
Another important change relates to the adjustment of the maximum taxable income. This means that individuals who are still working and earning above a certain threshold will have to pay taxes on a larger portion of their earnings in the upcoming year, according to the new limits set by the SSA.
The COLA’s broader role in economic stability
The annual COLA is not just about keeping up with inflation. It also plays a vital role in maintaining the economic stability of those who rely on Social Security programs. The adjustment helps cushion beneficiaries from the financial stress that can result from rising prices for essentials like food, healthcare, and housing.
The COLA is calculated based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), its impact is felt across a much broader demographic, ensuring that older adults, people with disabilities, and survivors can manage their everyday expenses without falling behind financially.
The ripple effect of this adjustment reaches far beyond the direct recipients. Families of beneficiaries, who often provide additional support, also benefit indirectly. When the person receiving Social Security benefits is able to cover more of their own costs, family members can avoid shouldering an even heavier financial burden. This ripple effect helps reduce the overall economic strain on families and communities.
While a 2.5% increase might seem modest, for many people living on fixed incomes, even a small boost can make a significant difference. It allows individuals to manage unexpected expenses more comfortably, whether that’s a sudden rise in utility bills, medical costs, or other living expenses that might otherwise put them in a difficult financial situation.