Social Security Benefit Adjustments for 2025

For individuals familiar with Social Security Disability Insurance (SSDI), it comes as no surprise that payments often increase every year when taking into account cost-of-living adjustments (COLA) to address annual inflation rates. All Social Security payments, whether they be survivor, family, or disability benefits, as well as Supplemental Security Income (SSI), all receive annual COLAs to keep up with each year’s shifting inflation rate. Here’s how it affects you.

Cost of Living Adjudgments In the Past

While the COLA rate was 3.2% in 2024, the rate of inflation continued to fall last year, meaning the increase was only 2.5% to begin 2025. While this might appear to be a significant drop, it is critical to note that for the past decade, the average increase in COLA was about 2.6%, meaning that the most recent adjustment is well within the expected range. In turn, the Social Security Administration (SSA) revealed that this also means that the estimated average retirement benefit payment will increase by $49 each month, from $1,927 to $1,976.

Other Changes With the New Year

Unfortunately, while SSDI benefits are increasing in accordance with inflation rates, specific COLAs are not able to meet the increases. SSDI COLA only increases checks by 2.5% even though health acre premiums like Medicare Part B are being raised up to 5.9%, indicating that the premiums are growing even faster than COLAs can adjust for.

Similarly, the full retirement age (FRA) is also affected by these SSI shifts. In the past, FRA has been going up two months per adjustment, in accordance with an individual’s birth year. Under the most recent change, FRA is at 67 for all individuals born in 1960 or later.

Along with these changes, the SSA is shifting towards having individuals access their information through their My Social Security account. This secure and free account allows individuals to check on the status of applications, generate estimates of future benefits, as well as manage existing benefits. This emphasis on online account management is due to the fact that many of the SSA’s notices are now released online, either by text or email. By electing to receive notices online, you will receive notices quicker than you would by mail, while also reducing the risk that they get lost or misplaced.

Navigating Social Security Changes for the 2025 Adjustment

SSDI policies and payments are constantly changing, and you will want to know how much value you are actually getting from your benefits. If you, or someone you love, needs help with applying for or understanding changes to disability payments, our experienced team of Social Security Disability lawyers is here to serve you. Call Jan Dils today to learn more – we can help anyone from anywhere in the country.