SSDI stands for Social Security Disability Insurance. Therefore, it is a benefit program from the Administration and for people who have a qualifying disability. In order to be eligible for these monthly payments, you must meet all the requirements SSA has set. Besides, eligible recipients will receive the COLA increase in 2025. This cost-of-living adjustment will help beneficiaries maintain their buying power.
For your information, there are generally 4 different paydays for SSDI every month. However, you can only receive one of them. For example, there will be a payday on January 3, January 8, January 15, and January 22. Depending on when you applied and got approval, if you get Supplemental Security Income payments, and on your birthday, you may get one or the other.
When will the 2025 COLA increase will take place for SSDI recipients?
The 2025 COLA increase will not come into effect for SSDI recipients until their January payment is sent. So, as you may have already seen above, the payments will range from January 3 through January 22, 2025. If you are also receiving Supplemental Security Income payments, SSI recipients will get the COLA increase on December 31, 2024.
For your information, the Social Security Administration cannot send SSI on January 1 because it is a Federal Holiday. Banks, financial institutions, and SSA offices will be closed on New Year’s Day. So, the Agency had to reschedule the January 1 payment and send it 1 day in advance.
To get the 2025 COLA increase you just need to wait for your January payment. There is no need to apply for it. January 3 will be your payday if you:
- are receiving SSDI and SSI (both monthly payments simultaneously)
- began collecting Social Security Disability Insurance before May 1997
January 8 will be your payday if you started receiving Social Security after May 1997 and you were born from the 1st to the 10th. Those who are in a similar situation but were born from the 11th to the 20th will get it on January 15. If you were born after the 20th, your payday with the 2025 COLA will be issued on January 22.
Who will be eligible for SSDI payments in 2025?
Social Security Disability Insurance can be for the rest of your life if you remain eligible. Then, they will turn to retirement benefits automatically. To be eligible you must have a qualifying disability that meets the strict definition given by Social Security.
What is more, you must have worked and earned enough work credits. If your job was not covered by Social Security and you did not pay taxes to the Administration, you will not qualify. Summing up:
- have a disability
- it meets SSA’s definition
- have enough work credits
- paid enough payroll taxes
- applied for SSDI
How much will SSDI benefits increase after the 2025 COLA increase?
The Social Security Administration has confirmed that all Disability Insurance payments will increase by 2.5%. That is about 2.5 dollars if you earn 100 dollars per month.
Therefore, if your payment is worth 100 dollars, you will receive $102.5 after the 2025 COLA increase. Those SSDI recipients whose monthly payment is worth $1,000 will get $1,025 in 2025.
As of September 2024, the average SSDI payment is worth $1,539. If it remained the same through December, you could receive $1,577 after the 2025 COLA increase.
This monthly boost will be just 38 dollars. In one year, a Disability Insurance recipient who gets $1,539 in 2024 will get $456 extra in 12 months. Hence, it is much better than a reduction or no increase at all.
Bear in mind that if you were a high earner for 35 years, you could receive up to $4,018 in 2025. This will be the largest benefit for SSDI in 2025, up from $3,822 in 2024. Beneficiaries who have a low income may also qualify for Supplemental Security Income payments. So, apply for them if you cannot make ends meet.
