How the 2025 COLA Increase Impacts Disability Payments
Cost-of-living adjustments (COLA) provide a measure of relief from the effects of inflation for those who rely on Social Security disability benefits to replace lost wages. The federal government uses the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) to determine annual COLA increases to disability benefit payments through the Supplemental Security Income and Social Security Disability Insurance programs.
The 2025 COLA of 2.5% is based on an increase in the CPI-W from the third quarter of 2024 to the third quarter of 2025. The information that follows explains the Social Security cost of living increase 2025 and how it affects disability benefits and other aspects of the SSI and SSDI programs. If you have questions or need assistance about what you read and how it affects the benefits you receive, the disability attorneys at American Disability Action Group are available to help.
Effect of COLA increase on your SSI benefit payments in 2025
The maximum monthly federal SSI benefit payment was $943 in 2024. It increased to $967 in 2025 due to the 2.5% COLA increase. Couples eligible for SSI benefits also received an increase from $1,415 in 2024 to $1,450 in 2025.
If you live in a state that provides supplemental payment to the federal SSI benefits, you could receive more than the federal benefit amount. A member of the ADA Group disability benefits team can explain how the state supplemental payment works where you reside.
The resource limits you must meet to be approved for the SSI program have not changed. Individuals cannot have resources with a total value of $2,000. The resource limit for couples remains at $3,000. They have not been affected by the 2025 SSI COLA adjustment, as have the monthly benefits.
If you work part-time while receiving SSI benefits, the money you earn may reduce the SSI benefits that you receive. However, students who regularly attend school may exclude a portion of their earned income to avoid it affecting their SSI benefits.
The SSI student exclusion in 2025 is $2,350 per month with a yearly maximum of $9,460. To be entitled to the exclusion, a student must be younger than age 22 and must be engaged in a course of study in one of the following ways:
- Attending classes at least 12 hours a week in grades 7 through 12.
- Attending classes for at least 8 hours each week under a quarter or semester system at a college or university.
- Taking a training course to prepare them for employment and attending for at least 12 hours per week.
- Be home schooled for grades 7 through 12 for a minimum of 12 hours a week according to the laws of the state where they reside.
Students homebound because of their disability may meet the school requirements by taking courses offered by a secondary school, college, university, or government agency under the guidance of a home tutor or visitor.
COLA increase and SSDI benefits
The 2025 SSDI COLA rate increase affects benefits received by disabled workers as well as family benefits for their spouses and children. Benefit amounts through the SSDI program are based on each worker’s average earnings over the course of their work history before the onset of their disability.
Because of the individualized nature of the way Social Security determines benefit payments to disabled workers and their families, the following shows the average monthly benefits with the COLA increase for 2025:
- Disabled workers: $1,580.
- Disabled worker, spouse, and at least one child: $2,826.
- Surviving spouse and two children: $3,761.
The maximum monthly benefit for workers who retire at full retirement age in 2025 is $4,018. This would apply to individuals who worked at high-paying jobs, so they paid the maximum Social Security taxes each year.
Changes To Income Thresholds For 2025
A person’s ability to do substantial gainful activity is a factor in determining whether they have a disability according to the definition used by Social Security. If a person works and earns more than $1,620 per month, they are doing substantial gainful activity. The SGA threshold for a blind person is $2,700.
If you work while receiving SSDI benefits, you can earn more than the SGA threshold without it affecting your benefits during a trial work period (TWP). You have nine months to work and keep your earnings and SSDI benefits. Any month where you earn more than $1,160 from working counts as a trial month in 2025. You have 60 months to use the nine months.
Rely on a disability attorney for disability benefits assistance
Whether you have disability benefits COLA 2025 questions or need skilled representation to fight a denial of a claim, turn to the disability attorneys at American Disability Action Group. Contact us today for a free consultation.
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