Understanding COLA 2025-2026: How SSDI Adjustments Work

For millions of Americans relying on Social Security Disability Insurance (SSDI), the annual Cost-of-Living Adjustment (COLA) is a critical factor in maintaining financial stability. With inflation impacting everyday expenses, the 2025-2026 COLA increase will directly affect SSDI beneficiaries' monthly payments.

Our expert attorneys at Law Office of Irene Ruzin have compiled this guide for you:

• Projected 2025 COLA rates and how they compare to past years.
• Estimated payment increases for average and maximum SSDI benefits.
• How COLA interacts with Medicare premiums (and why your net increase might be smaller).
• Steps to prepare for the adjustment.

Understanding COLA: How SSDI Adjustments Work

The Social Security Administration (SSA) uses the Consumer Price Index for Urban Wage Earners (CPI-W) to calculate COLA. This index tracks inflation for goods and services like food, housing, and healthcare.

While the official COLA is announced in October 2024, early estimates from the Senior Citizens League suggest a 2.7–3.2% increase for 2025. Here's what that means for beneficiaries:

Note: These are estimates—final numbers depend on inflation data through September 2024.

While COLA raises your SSDI payment, Medicare Part B premiums (which are deducted automatically) may offset part of the increase. In 2024:

• The standard Part B premium rose to $174.70/month.
• If 2025 premiums jump to $180/month, your net gain from COLA could shrink.

Some states (e.g., California, New York) offer additional disability payments on top of SSDI. These may also adjust for COLA.

If your income exceeds $25,000/year(single)or$32,000 (joint), up to 50% of your SSDI benefits may be taxable. A higher COLA could push you into this bracket.

To contextualize the 2025 increase, here's how past COLAs have played out:

The 2023 spike was rare, driven by post-pandemic inflation. 2025's adjustment will likely be more modest.

1. Review Your Earnings Record
   Errors in your work history can lower your benefit. Check your SSA.gov account to verify credits.
2. Appeal if Underpaid
   If your COLA increase seems incorrect, contact the SSA or a disability attorney to dispute it.
3. Plan for Medicare Costs
   Consider switching to a Medicare Advantage Plan to reduce out-of-pocket expenses.
4. Report Life Changes
   Marriage, moving, or income shifts can affect your eligibility. Update the SSA promptly.

The 2025-2026 COLA increase will provide much-needed relief for SSDI recipients facing rising costs. While the projected 2.7–3.2% adjustment won't match 2023's historic bump, it's still a vital boost. Stay informed by tracking the SSA's official announcement this October.

For personalized help navigating SSDI rules or appealing a benefit decision, reach out to the Law Office of Irene Ruzin. Our disability experts can ensure you receive every dollar you're entitled to.