Improved benefit payments are scheduled to be made this week to millions of Supplemental Security Income (SSI) recipients.
Why It Matters
This is the first week in which boosted benefits are set to be distributed thanks to the cost-of-living adjustment (COLA), which increases payments every year so that purchasing power is not eroded. In October, the Social Security Administration (SSA) announced a 2.5 percent boost to all benefits issued in 2025.
SSI payments are made to low- and no-income individuals who are blind or disabled.
What To Know
This week, SSI payments are scheduled to be made on December 31, a day earlier than usual because New Year's Day is a federal holiday. The regular payment date is the first of every month.
"We do this to avoid putting you at a financial disadvantage and make sure that you don't have to wait beyond the first of the month to get your payment," the SSA said in a 2022 blog post. "It does not mean that you are receiving a duplicate payment in the previous month, so you do not need to contact us to report the second payment."
The SSA recommends waiting three working days before contacting the agency if your payment does not arrive on the expected date. Federal holidays and weekends are not working days.
Thanks to the COLA, for 2025, the maximum monthly benefit available is $967 for a single person and $1,450 for a couple, up from $943 for an individual and $1,415 for a couple in 2024.
This is less than boosts made in recent years, however. While the COLA for 2024 boosted benefits by 3.2 percent, 2023 saw an 8.7 percent annual raise following a period of high inflation caused by the coronavirus pandemic, which reached a high of 9.2 percent in 2022.
However, how much a beneficiary gets depends on their circumstances, such as their income, type of disability and any cohabitants they may live with. According to the Congressional Research Service, the average federally administered SSI payment was $697 in February 2024.
What People Are Saying
Mary Johnson, an independent Social Security and Medicare policy analyst, said: "The 2025 COLA will be the lowest received by Social Security beneficiaries since 2021, at the same time inflated prices persist on key essentials such as housing, meats, auto insurance, any type of service and repairs. Despite it being the lowest COLA since 2021, a 2.5 percent COLA would be considered about average."
What Happens Next
While the estimated average monthly retirement benefit for Social Security claimants was $1,907 in January 2024, it is estimated to increase to $1,976 in 2025. The next round of benefits, which are for those who get retirement payments, is scheduled to be made on January 3.
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