With the 2025 Cost of Living Adjustment (COLA) announced by the Social Security Administration (SSA), Supplemental Security Income (SSI) recipients will see several important changes.
These adjustments are designed to help beneficiaries keep up with inflation and rising living costs. Here are the three major changes SSI recipients can expect after the 2025 COLA increase.
1. New Maximum SSI Payment Amounts
The COLA increase will result in higher monthly SSI payments for individuals, married couples, and essential persons. Starting from December 31, 2024, SSI recipients will see these new maximum amounts:
- $484 for essential persons (up from $472)
- $967 for individuals (up from $943)
- $1,450 for married couples (up from $1,415)
These changes mean that SSI beneficiaries will receive more each month, helping them better manage their expenses.
Even if you don’t receive the maximum amount, your benefit will increase proportionally. For example, someone currently receiving $500 per month will see their benefit rise to $512.5.
2. SSI Student Exclusion Increase
The SSI student exclusion allows certain income to be excluded from benefit calculations for students. This limit will also increase after the 2025 COLA:
- Monthly exclusion: From $2,290 to $2,350
- Annual exclusion: From $9,230 to $9,460
This increase means that students who are receiving SSI and earning income will be able to exclude a larger portion of their earnings from their benefit calculations, allowing them to keep more of their income without affecting their SSI benefits.
3. Increased Disability Income Thresholds
The 2025 COLA will also raise the income limits for those receiving disability benefits. This applies to the Substantial Gainful Activity (SGA) thresholds, which determine how much income a person with a disability can earn while still receiving benefits. These new thresholds are:
- Non-Blind: From $1,550 to $1,620 per month
- Blind: From $2,590 to $2,700 per month
- Trial Work Period (TWP): From $1,110 to $1,160 per month
These increased thresholds will allow people with disabilities to earn more while still qualifying for their disability benefits, providing more financial flexibility.
The 2025 COLA increase brings positive changes for SSI recipients, including higher monthly payments, a raised student exclusion limit, and increased income thresholds for disability recipients.
These adjustments are crucial for helping beneficiaries manage their finances in the face of rising living costs. Make sure to review your new benefit amounts through your my Social Security account to see how these changes will affect you.
FAQs
When will SSI recipients see the 2025 COLA increase?
SSI recipients will see the increase on December 31, 2024, ahead of January’s payment.
What will be the new maximum SSI payment for individuals after the COLA?
The new maximum payment for individuals will be $967.
How does the student exclusion change after the COLA increase?
The monthly student exclusion will rise to $2,350, and the annual limit will increase to $9,460.
What are the new SGA income thresholds for 2025?
Non-blind individuals can earn up to $1,620, and blind individuals up to $2,700 per month.
How will the COLA increase affect disability recipients?
The SGA thresholds and Trial Work Period amounts will increase, allowing higher income limits without affecting benefits.
