Every new year, the United States Government, through the Social Security Administration brings a new COLA (Cost of Living Adjustment) for Supplemental Security Income (SSI) recipients and retirees. As a matter of fact, it is the tool SSA uses to fight soaring inflation. In this way, beneficiaries can maintain their buying power with higher payments.
Needless to say, millions of Americans could face financial difficulties if they did not receive a COLA increase from Social Security in 2025. Especially those with the lowest incomes and SSI beneficiaries are in this situation. So, COLA is a relief to help with financial stability. So far, there are just projections.
COLA – Buying power increased for SSI
Retirees and disability (blind people included) recipients who have a low-income benefit from the COLA boost from Social Security payments. Getting more money for each monthly payment means they can:
- deal with soaring prices and inflation better
- have a similar buying power
- if you get Supplemental Security Income and retirement or SSDI you get an increase in both benefits
- First recipients to enjoy the 2025 COLA increase in their payments
Those who remain eligible and get SSI benefits in 2025 will benefit from a COLA increase of about 2.5%. That is the latest projection available from the experts in the Senior Citizens League. They have accurately predicted the latest COLA boosts, so you can rely on their forecast.
Understanding the First SSI payment that Social Security scheduled for 2025
Although millions of Social Security recipients will have to wait until January to get the increase in their monthly payment thanks to COLA, SSI recipients are an exception. The Cost of Living Adjustment (COLA) for SSI will be due on December 31.
This is because Social Security never sends money on Federal holidays like New Year. So, the Supplemental Security Income payment with the 2025 COLA increase will have to be delivered on the previous business day, December 31, 2024.
2025 Payment schedule for SSI from January
Most Supplemental Security Income payments are generally sent on the first of the month. This will not be the case in February or March. The February check will be issued on January 31 and the one for March on February 28. April, May, July August, October, and December will have SSI on the first. The rest, on the previous business day.
What to expect from SSI
With just a 2.5% COLA increase in the Supplemental Security Income payments, recipients cannot expect a large boost like in 2023 or 2022. The maximum benefit could become about $966, which is 23 dollars extra. The maximum increase expected for individuals.