2025 Social Security Payment: How to Qualify for the Extra with COLA Increase

Supplemental Security Income (SSI) recipients will see a 2.5% increase in their monthly payments in 2025, with the adjustment reflected in the December 31, 2024, payment. If you’re an SSI recipient or are planning to apply, it’s important to understand how the Cost-of-Living Adjustment (COLA) will affect your benefits, eligibility requirements, and how to ensure a smooth process for receiving your new payment. Here’s everything you need to know about this year’s adjustment and practical steps to prepare.

Key Information at a Glance

Key Details	Information
COLA Increase for 2025	2.5%
December 2024 Payment	Includes COLA adjustment for January 2025
SSI Eligibility	U.S. citizens, nationals, or qualified non-citizens, aged 65+, blind, or disabled
Resource Limits	$2,000 for individuals; $3,000 for couples
Income Limits	Varies by household composition; certain exclusions apply
Source	Social Security Administration (SSA)

What Is SSI and How Does the COLA Affect It?

SSI is a federal program that provides financial assistance to individuals who are 65 or older, blind, or disabled, and who meet specific income and resource limits. Each year, the Social Security Administration (SSA) adjusts SSI benefits based on inflation, known as the Cost-of-Living Adjustment (COLA). For 2025, recipients will see a 2.5% increase in their payments, helping them cope with rising living costs.

When Will the COLA Increase Be Paid?

The COLA increase will be included in the December 31, 2024, payment, which covers the January 2025 benefit. Recipients do not need to wait until January for the adjustment, as it will be delivered early to ensure that you begin the new year with the updated amount.

Eligibility for SSI and the COLA Increase

To qualify for SSI, individuals must meet the following criteria:

• Age or Disability: Must be 65 years or older, blind, or disabled with proper documentation.
• Income: SSI is designed to assist individuals with limited income. The Federal Benefit Rate (FBR) for 2024 is $914 per month for individuals and $1,371 for couples. Some types of income, like a portion of wages, may not be counted, so some part-time workers could still qualify.
• Resources: To be eligible, your resources must be below $2,000 (for individuals) or $3,000 (for couples). This includes savings, cash, real estate, and vehicles (excluding primary residence).
• Citizenship: SSI benefits are available to U.S. citizens, nationals, and certain qualified non-citizens.

How the COLA May Affect Other Benefits (Medicaid, SNAP, and Housing Assistance)

A 2.5% increase in SSI benefits may also influence eligibility for other assistance programs like Medicaid, SNAP (food stamps), or housing support:

• Medicaid: If the increase puts your income above Medicaid’s eligibility limit, you might lose coverage or need to pay a portion of your medical expenses. Some states offer a “spend down” option to help people with higher incomes stay eligible.
• SNAP: The COLA may reduce SNAP benefits slightly for SSI recipients, as the income limits vary by state.
• Housing Assistance: If you receive subsidized housing or Section 8 benefits, you must report your new income to avoid overpayment and ensure your rent stays accurate.

What You Need to Do to Ensure Timely Payment

Receiving the COLA adjustment is automatic for current SSI recipients. However, to avoid delays, follow these practical steps:

1. Verify Your Contact Information: Ensure that SSA has your up-to-date contact details, especially if you’ve recently moved or changed contact information. Update your details via your mySocialSecurity account or visit an SSA office.
2. Review Your Current Benefit Statement: Check your mySocialSecurity account for your current and updated benefit after the COLA increase.
3. Understand the Impact on Other Benefits: If you’re enrolled in other programs like Medicaid or SNAP, consult an SSA representative or a social worker to understand how the COLA may affect your eligibility.
4. Mark December 31, 2024, on Your Calendar: Since January 1, 2025, is a federal holiday, SSI payments will be made early on December 31, 2024.

Real-Life Examples of How the COLA Affects SSI Recipients

Example 1: Single SSI Recipient
Samantha, a 67-year-old single woman, receives $914 per month in SSI benefits. After a 2.5% COLA increase, her monthly payment will rise to about $936.85. This extra $22.85 can help cover her grocery or utility bills.

Example 2: Married Couple on SSI
Tom and Susan, a couple, currently receive $1,371 in monthly benefits. After the COLA increase, their combined benefit will rise to $1,405.28, helping to cover medication costs and other essentials.

Budgeting Tips for SSI Recipients

Make the most of your COLA increase with these simple budgeting tips: