Every new year, the United States Government, through the Social Security Administration, issues a new COLA (Cost of Living Adjustment) for Supplemental Security Income (SSI) beneficiaries and retirees. In reality, it is the weapon used by the Social Security Administration to combat rising inflation rates. Beneficiaries can preserve their purchasing power by receiving bigger payouts.
Needless to say, millions of Americans may suffer financial hardships if Social Security does not provide a COLA rise in 2025. This issue primarily affects low-income individuals and SSI recipients. So, COLA is a relief for financial stability. So far, there are only projections.
COLA – Purchasing power boosted for SSI
Retirees and disability beneficiaries (including blind persons) with modest incomes benefit from the COLA increase in Social Security payments. Getting extra money for each monthly payment allows them to:
To cope with rising prices and inflation, it’s important to maintain the same purchasing power. Additionally, receiving Supplemental Security Income (SSDI) can result in increased benefits.
First people to get the 2025 COLA rise in their payouts.
Those who remain eligible and receive SSI payments in 2025 will benefit from a COLA rise of around 2.5%. The Senior Citizens League’s specialists have made the most recent prediction available. They properly forecasted the most recent COLA increases, so you can trust on their forecast.
Understanding the first SSI payment that Social Security has scheduled for 2025
Although millions of Social Security users will have to wait until January to see an increase in their monthly payment due to COLA, SSI recipients are an exception. The Cost of Living Adjustment (COLA) for SSI is due on December 31.
This is because Social Security never sends money on federal holidays, such as New Year’s. So, the Supplemental Security Income payment with the 2025 COLA rise must be issued on December 31, 2024, the prior business day.
2025 SSI payment schedule, beginning in January
Most Supplemental Security Income payments are made on the first of the month. This will not be the case in February and March. The cheque for February will be issued on January 31, and the one for March on February 28. April, May, July, August, October, and December will be the initial months for SSI. The remainder occurred on the preceding business day.
What to Expect From SSI
With only a 2.5% COLA rise in Supplemental Security Income payments, recipients cannot expect a significant gain as in 2023 or 2022. The maximum gain might be around $966, or an additional 23 dollars. Individuals can expect a maximum rise.
