Social Security Announces New Increase in SSI Payments for 2024 – Here’s the Exact Date

Supplemental Security Income (SSI) is a critical program provided by the Social Security Administration (SSA) for low-income individuals, including seniors aged 65 or older, those who are blind, and people with medical conditions that prevent them from working. Unlike traditional Social Security benefits, applicants for SSI don’t need to have paid Social Security taxes to qualify.

However, they must meet income and resource limits. For those already on SSI, there is some important news on the horizon—benefits are about to increase in 2025, although perhaps not by as much as many hoped.

Adjustment

SSI recipients can expect a modest increase in their monthly payments in 2025, thanks to the annual Cost-of-Living Adjustment (COLA). This year’s expected COLA, forecasted at 2.63%, brings both positive and slightly disappointing news. On the one hand, recipients will get a bit more financial relief as inflation continues to stabilize. But on the other hand, the increase is much smaller than the adjustments seen in the past few years.

In 2024, for example, the COLA increase was 3.2%, while 2023 saw a significant 8.7% adjustment due to high inflation. In contrast, the anticipated 2.63% raise for 2025 seems minor, leaving many beneficiaries underwhelmed. A steady decline in inflation is partially responsible for this drop in the COLA percentage, and unfortunately, this means smaller increases in SSI checks.

Estimated

What does this mean for recipients? According to estimates from the Senior Citizens League, SSI beneficiaries who receive an average payment of $698 per month would see their checks rise to about $716—an increase of just $18 monthly. Over the course of a year, that translates to an additional $216. Similarly, someone receiving $943 monthly would see their payments increase to $968, adding an extra $25 per month. For couples, monthly payments of $1,415 would increase to $1,452, offering an additional $37 monthly.

Below is a breakdown of the projected increases based on a 2.63% COLA:

While these adjustments may seem modest, they will provide some help for beneficiaries, even if not as much as many had hoped.

Timing

It’s important to remember that these estimates are not set in stone. The final COLA for 2025 will be announced in October 2024. The Social Security Administration bases its COLA calculation on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Inflation plays a big role in this index, which is why COLA adjustments can vary so much from year to year.

Historically, COLA increases have fluctuated significantly. For instance, in 2022, the COLA was a hefty 5.9%, while in 2023, it rose even higher to 8.7%. However, in years like 2010, 2011, and 2016, there was essentially no increase due to low inflation. This demonstrates how unpredictable COLA adjustments can be, depending on economic factors like inflation and overall price stability.

Impact

SSI recipients aren’t the only ones affected by the annual COLA. Other Social Security beneficiaries, such as those receiving retirement, survivor, or Social Security Disability Insurance (SSDI) benefits, will also see their checks rise in 2025. The table below shows the anticipated increases for various Social Security benefit categories:

Though these figures provide a helpful snapshot of what to expect, the exact amounts will be confirmed with the official COLA announcement in October 2024.

If the anticipated 2.63% increase holds true, it’s lower than what many recipients received in recent years. Despite this, it still offers some much-needed financial relief as inflation continues to slow.

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