The topic of Social Security payments in the United States is crucial for more than 71 million beneficiaries. The 2025 increase is determined by the Cost of Living Adjustment (COLA) and aims to mitigate the effects of inflation on the income of retirees, individuals with disabilities, and others affected by the economic crisis.
According to information from the Senior Citizens League, the expected COLA for 2025 is projected to be 2.57% for Social Security and SSI recipients in the United States. This increase provides much-needed relief amidst rising prices, especially for essential items like food and basic services.
Possible increase in October for some SSI recipients, not for Social Security
Beginning in October 2024, many beneficiaries of the Supplemental Security Income (SSI) program in the United States will see a rise in their monthly payments. Some SSI recipients may also get Social Security simultaneously. This adjustment is due to significant changes implemented by the Social Security Administration.
- The 2025 COLA increase projection is set at 2.57%.
- This adjustment addresses the impact of inflation on essential living costs.
- Beneficiaries include retirees, individuals with disabilities, and more.
- Changes for SSI will take effect starting October 2024 for SSI recipients.
This increase aims to provide a financial cushion for those who rely on SSI payments, ensuring they can better manage the rising costs of living.
This adjustment is part of a series of reforms aimed at simplifying access to these benefits and improving equity for the most vulnerable individuals. Starting on September 30, a new rule will take effect that will no longer consider food assistance in determining SSI benefits.
Impact of the New Rule for SSI
Previously, the agency counted food assistance received from friends, family, or communities as unearned income. This could reduce the monthly payment amount or even affect the eligibility of a potential beneficiary.
Advantages of the Change
This change is significant because it will allow individuals who rely on informal assistance to access a higher monthly amount without such aid negatively impacting their financial situation. It is important to note that Social Security has not yet announced a specific figure for the increase.
- Simplified Access: Easier for vulnerable individuals to receive benefits.
- Improved Equity: Ensures fair treatment for those in need.
- Increased Support: Higher monthly amounts for beneficiaries.
Save the date October 10 to know how much your retirement, SSDI, or SSI benefit may increase, and keep reading for further updates from the SSA regarding the specific increase in benefits. October 10 will be when Social Security unveils the new COLA figure for 2025.