In 2025, Social Security recipients will see their benefits adjusted by a 2.5% cost-of-living adjustment (COLA) to keep pace with inflation. However, not all beneficiaries will experience the same impact from this increase.
While the SSA funds both Social Security retirement and SSDI benefits, Supplemental Security Income (SSI) is funded by the federal government, and its maximum payment amounts are generally lower than retirement and SSDI payments.
Here’s a breakdown of how the COLA increase will affect each program and who stands to gain the most in terms of dollar amounts.
SSI: Smallest Benefit Increase
Understanding SSI and the 2025 COLA Boost
SSI provides financial support to low-income individuals who are over 65, blind, or have a disability.
Given the program’s structure and funding, SSI recipients will see a smaller dollar increase compared to other Social Security benefits after the 2025 COLA adjustment.
Here’s a look at the maximum monthly amounts for SSI before and after COLA in 2025:
| SSI Recipient Type | 2024 Monthly Max | 2025 Monthly Max (After COLA) | Increase |
|---|---|---|---|
| Individual | $943 | $967 | $24 |
| Married Couple | $1,415 | $1,450 | $35 |
| Essential Person | $472 | $484 | $12 |
For SSI recipients, the COLA increase translates to an additional $24 for individuals, $35 for married couples, and $12 for essential persons. Because SSI amounts are lower to start with, the 2.5% COLA increase results in a modest dollar boost.
While this adjustment provides some relief, it is far smaller than the increases seen in SSDI and Social Security retirement benefits.
SSDI: Mid-Range Increase
How the COLA Increase Affects SSDI
SSDI supports individuals who cannot work due to a qualifying disability. Since SSDI benefits are based on an individual’s work history and lifetime earnings, they generally offer a higher monthly payment than SSI but less than Social Security retirement benefits for some retirees.
The average SSDI payment in 2024 is approximately $1,539, and with the COLA increase, the average benefit will rise by about $38 per month. The highest possible SSDI benefit, which goes to high earners, will reach up to $3,822 per month in 2025, also reflecting the 2.5% COLA increase.
| SSDI Payment | 2024 Amount | 2025 Amount (After COLA) | Increase |
|---|---|---|---|
| Average Payment | $1,539 | $1,577 | $38 |
| Maximum Payment | $3,736 | $3,822 | $86 |
With a $38 average increase for SSDI recipients, the COLA adjustment offers a noticeable boost for those relying on these disability payments.
However, for individuals who qualify for the maximum SSDI benefit, the increase could be as high as $86 per month, providing substantial additional support.
Social Security Retirement: Largest Increase
Retirement Benefits After the 2025 COLA Adjustment
Social Security retirement benefits generally provide higher monthly payments than SSI or SSDI due to the structure of retirement benefits, which are based on a person’s highest 35 years of earnings.
In 2024, the average Social Security retirement payment was approximately $1,927, and this will increase by nearly $50, bringing the average monthly benefit to $1,976 in 2025.
| Retirement Payment | 2024 Amount | 2025 Amount (After COLA) | Increase |
|---|---|---|---|
| Average Payment | $1,927 | $1,976 | $49 |
Because Social Security retirement benefits are based on earnings rather than need, retirees will generally see a larger dollar increase from the 2.5% COLA adjustment.
This means that retirement beneficiaries will receive a higher COLA increase in dollar terms than both SSI and SSDI recipients, providing extra help for retirees amid rising living costs.
Comparing the 2025 COLA Benefits Across Programs
The dollar increase each program provides reflects the existing differences in maximum and average benefit amounts. Here’s a quick comparison:
| Program | 2025 Monthly Increase (Average) | 2025 Monthly Increase (Maximum) |
|---|---|---|
| SSI | $24 – $35 | $35 |
| SSDI | $38 | $86 |
| Retirement | $49 | Varies by earnings record |
Overall, Social Security retirement recipients will see the largest dollar increase after the 2025 COLA adjustment, with SSDI recipients benefiting more than SSI beneficiaries but less than retirees.
While the percentage increase remains the same across all Social Security programs, those with larger benefits receive a greater boost in dollar terms, offering greater relief from inflation.
The 2025 COLA adjustment aims to help beneficiaries keep up with rising costs, but understanding these differences is essential for those who depend on these programs for financial stability.
