The new 2025 COLA projection brings good news for all SSDI recipients in the United States. The Senior Citizens League has just announced the latest 2025 COLA projection.
As a matter of fact, it is higher than the one in May 2024. Therefore, this means that disability recipients on Social Security may get a higher payment if things continue the same way and nothing changes.
2025 COLA projection for SSDI
As of July 2024, the 2025 COLA forecast for Social Security is 2.63%. That is the latest update given by the Senior Citizens League. That implies disability benefits may increase by 2.63 percent.
However, disability recipients got a bigger boost in the previous years. Hence, it may be a great disappointment because they expected to get more money due to the exorbitant prices of food and other services or goods.
The COLA for 2024 was 3.2%. Thus, SSDI recipients will not get so many dollars extra in January 2025. The disappointment could be even higher if compared to the 2023 COLA boost, which was 8.7%.
Possible SSDI amounts after the 2025 COLA projection
The average payment for Disability Insurance recipients is worth $1.537 as of May 2024. So, if all disability beneficiaries get a 2.63 boost, they could receive $1,577 on average.
As a matter of fact, that is approximately 40 dollars extra per month. In just one year, an SSDI recipient could get $480 extra on average. The thing is the amount of your payment could much much higher or much smaller.
If you just receive a payment worth $500, you could get $513 after COLA. Those who receive larger payments, for example, $2,000, could get $2,052. Recipients with a payment worth $1,000 may get about $1,026 after the 2.63% boost.
Even if all the payments in 2024 include the 2024 COLA, the new one will not be ready until January 2025. So, make sure you stick to your monthly earnings because there will be no increase yet.
How does the 2025 COLA projection compare to projections in previous years
The 2025 Social Security Cost-of-Living Adjustment (COLA) is expected to be lower. It will be lower than in previous years.
- The current estimate for the 2025 COLA is 2.7%, down from an earlier projection of 3.0% in June. This is a decrease from the 3.2% COLA in 2024.
- In 2023, the COLA was 8.7%, which was a significant increase from previous years due to high inflation . The 2025 projection indicates that inflation is cooling, leading to a lower anticipated COLA .
- Historical data shows that COLAs have varied. Some years had no adjustment (0.0% in 2010, 2011, and 2016). Others had higher increases, such as 5.9% in 2022 and 8.7% in 2023.
Key points to consider:
- The Social Security Administration typically announces the next year’s official COLA in October.
- The COLA is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) .
- The 2025 COLA is projected to be lower than in recent years. But, it is unlikely to be erased completely. But, this could happen if recessionary trends occur.