Disability Recipients Miss Out on COLA Boost in 2025 – Find Out If You’re Affected

WhatsApp Group Join Now
Telegram Join Now

For millions of Americans who rely on Social Security benefits, the Cost-of-Living Adjustment (COLA) is an essential safeguard. Designed to help individuals maintain their purchasing power amidst inflation, COLA ensures that those receiving Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) benefits can keep up with the rising cost of living. However, for 2025, there’s some confusion about who will be eligible for the COLA increase, and which recipients may miss out.

This article aims to clarify how the 2025 COLA increase will impact disability recipients, what eligibility factors you should be aware of, and practical steps you can take to prepare.

What Is COLA and Why Does It Matter?

COLA is an annual adjustment made to Social Security benefits to help offset inflation. The adjustment is calculated by the Social Security Administration (SSA) using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). When inflation rises, COLA ensures that Social Security benefits increase to help beneficiaries keep pace with higher living costs.

In 2025, the projected COLA increase is 2.5%, much smaller than the 8.7% increase in 2024, which was driven by significant inflation in 2023.

Who Qualifies for the COLA Increase?

Most Social Security beneficiaries, including retirees, SSDI recipients, and SSI recipients, automatically qualify for COLA adjustments. However, there is often confusion around specific eligibility criteria, leading some to worry unnecessarily.

SSDI vs. SSI Eligibility

  • SSDI provides benefits to individuals who have a work history but can no longer work due to a qualifying disability. Your benefits depend on your past earnings.
  • SSI is a needs-based program that offers financial assistance to disabled individuals with limited income and resources, regardless of work history.

While both SSDI and SSI recipients typically receive COLA increases, there are certain circumstances that could affect the amount of the increase you’ll see.

Are Any Disability Recipients Excluded from the 2025 COLA?

While no major exclusions have been announced for SSDI or SSI recipients, there are some specific situations where the COLA increase might be reduced or offset:

Leave a Comment