There’s good news for those American workers on disability benefits. Whether you are receiving SSI or SSDI, you monthly payments will increase from December 31, 2024, onward. Of course, some people with a disability who have a low income and little or no resources may be receiving both benefits at the same time.
Disability benefits will increase the same as retirement benefits. As of October 10, 2024, the Social Security Administration (SSA) announced a 2.5% increase in all the benefits (retirement, disability, SSI, survivors, spousal, and family benefits).
How will COLA affect disability benefits?
As a matter of fact, the 2025 COLA increase will affect SSDI and SSI benefits positively. The Administration has confirmed that the boost will be slightly lower than average.
This is because inflation has cooled down. On the one hand, it is positive because prices have not increased so much. On the other hand, many disability benefit recipients believe that the boost is not enough to make up for the high prices and some think it is not accurate because it does not reflect their needs.
For example, if you receive a monthly payment worth $1,000, you will receive 25 dollars extra once the 2025 COLA becomes effective. Average payments are not the same for SSI and SSDI.
Average disability benefits after COLA: SSI and SSDI
The current average SSDI payment is worth $1,542, so with a 2.5% increase, your benefit could become $1,580. That is a cost-of-living adjustment boost of about 38 dollars.
According to the Social Security Administration, the estimated average monthly disability benefit payable in January 2025 will be $2,826 for a worker with a disability, spouse, and one or more children.
The current amount for a worker with a disability, spouse, and children is $2,757 (before COLA). For those on SSI, disability beneficiaries will get about $714 on average after COLA. The new maximum amount for an individual will be up to $967, up to $484 for an essential person, and up to $1,450 for an eligible married couple.
