2025 SSDI Benefits Increase: Latest COLA Adjustment Details

 The Social Security Administration has announced a 2.5% Cost-of-Living Adjustment (COLA) for 2025, affecting over 72.5 million Americans receiving Social Security and Supplemental Security Income (SSI) benefits

For SSDI beneficiaries, this increase represents a modest but important boost to monthly income. The average SSDI recipient will see their monthly payment increase by approximately $40-60, depending on their current benefit amount. This adjustment comes as household expenses continue to rise across multiple sectors.

Along with the COLA increase, the SSA has also announced that the maximum taxable earnings subject to Social Security tax will increase to $176,100 in 2025

The 2.5% increase for 2025 follows a larger 3.2% increase in 2024, reflecting the moderation of inflation over the past year. While some advocates argue the increase isn't sufficient to address rising healthcare and housing costs, it provides some relief for disability recipients on fixed incomes.

SSDI recipients will receive notification of their new benefit amount by mail in December 2024, but can also view this information in their online my Social Security account once updated. For those who receive both SSDI and SSI, the adjustments will be applied to both benefits automatically.