As the year 2025 approaches, a significant adjustment in Social Security benefits is expected, especially benefiting veterans and Supplemental Security Disability Income (SSDI) recipients. This adjustment, known as a cost-of-living adjustment (COLA), is an essential tool that seeks to protect beneficiaries’ purchasing power in the face of inflation. As the costs of goods and services continue to rise, it is vital that these individuals have the financial support necessary to meet their basic needs.
The expected increase in benefits not only provides needed relief, but also reflects a commitment on the part of the government to those who have served in the military and those who, due to disabilities, rely on SSDI. The Social Security Administration (SSA) evaluates these adjustments annually, and the 2025 COLA promises to be significant financial relief for millions of people across the country.
How will the COLA affect SSDI and the VA?
With the expectation of a 2.5% adjustment in Social Security benefits, it is anticipated that both veterans and Supplemental Security Disability Income (SSDI) recipients will receive significant increases in their monthly payments. These increases will not only directly impact beneficiaries’ quality of life, but will also help mitigate the impact of inflation and rising living costs.
- Veterans (VA): With a 2.5% COLA, the average monthly payment could increase from approximately $1,500 to $1,538, benefiting millions of veterans who rely on these awards.
- SSDI: Supplemental Security Disability Income recipients could see an increase in their monthly payments from an average of $1,500 to about $1,538.
- Adjustments for spouses and dependent children: For those with dependents, additional benefits could also increase by 2.5%, offering greater financial support to families.
- Survivor benefits: Benefits for survivors of veterans and those with disabilities will also experience an increase, which could result in increases of about $100 per month, bringing the average $3,000 to approximately $3,075.
These benefit increases are a vital opportunity for beneficiaries to better plan for their financial future and ensure that their needs are adequately met in an ever-changing economic environment. The advent of the COLA will be especially important, as it will allow beneficiaries to better adapt to the economic challenges they face.
How the COLA is adjusted
The cost-of-living adjustment (COLA) is determined annually by the Social Security Administration (SSA) and is based on the change in the Consumer Price Index (CPI). This index measures the change in prices of essential goods and services, which allows the SSA to set a percentage adjustment. Each October, the new COLA is announced and applied to payments for January of the following year. This process ensures that benefits remain aligned with current economic conditions, helping beneficiaries meet their basic needs.
By next year 2025 we may see checks as large as $4,994 for age retirement. Mind you, it is mandatory to have maxed out your Social Security check to get this large payment. Likewise, SSDI or VA beneficiaries cannot reach such a high figure.
