SSDI recipients are surely looking forward to receiving the 2025 COLA increase. However, they will need to wait until January 2025 to receive this extra money from the Social Security Administration.
Bear in mind that Social Security will not announce the 2025 COLA boost figure until October 10, 2024. Therefore, SSDI recipients need to have a look at the latest projections.
SSDI & the 2025 COLA projection
According to the Senior Citizens League, which is one of the largest nonpartisan seniors groups in the USA, the COLA projection for Social Security is about 2.57%. Let’s compare it to the previous COLAs:
- 2024 COLA: 3.20%
- 2023 COLA: 8.70%
- 2022 COLA: 5.90%
- 2021 COLA: 1.30%
As you may have realized, it is not a very high COLA for SSDI, but it is higher than on many occasions. The good thing about COLA is that you can use this extra money to set up an emergency fund.
Those who believe that the 2025 COLA is too low should save it. In this way, they can benefit from an average emergency fund of about $468. For your information, the average Disability Insurance payment is worth $1,538 and it could become $1,577 after the 2025 COLA.
SSDI possible amounts in 2025 after the new COLA
If there were a 2025 COLA of 2.57% for SSDI, recipients would get 2.57 dollars extra for each 100 dollars they receive from Social Security. Imagine your disability check is worth 100 dollars, it would become 102.57 dollars.
If you receive $1,000 from Social Security Disability Insurance, you could get $1,025.7. That is 10 times 102.57. Some workers may have had a larger wage and they may qualify for $2,000.
In that case, your SSDI payment would become $2,051.4. The largest Disability Insurance payment will be over $3,822 since this is the maximum disability benefit in 2024.
If you have just applied and got the approval to get SSDI and you get a lot less than the average $1,538, you could receive SSI payments as well. SSI can give you $695 on average additionally.
Are there any local or state programs that SSDI recipients can take advantage of in 2024?
Medical Assistance (Medi-Cal): In California, if you receive SSI, you typically get Medi-Cal automatically. There’s no need for a separate application. Medi-Cal offers health coverage to SSI recipients.
Supplemental Nutrition Assistance Program (SNAP/CalFresh): In California, SSI recipients might qualify for CalFresh food benefits. To apply, visit any Social Security office. You need to receive SSI, reside in California, and meet other criteria. CalFresh offers extra money for food.
Additional Resources for SSI Recipients: Those on SSI might access more services through their county social services office. This includes home care, support for the elderly or disabled, mental health aid, and substance abuse help. Furthermore, they also offer information and referrals. For details, please contact your county office.
ABLE Accounts: If you get SSI, you can save up to $100,000 in an ABLE account. This amount won’t affect your SSI eligibility, which has a $2,000 resource limit. ABLE accounts let you save and grow money tax-free for disability expenses.
SOAR: SSI/SSDI Outreach, Access and Recovery is a national program that helps eligible homeless or at-risk adults apply for SSI/SSDI. SOAR-trained case managers can assist with applications.