As we approach the 2025 Cost of Living Adjustment (COLA) for Social Security, Supplemental Security Income (SSI), and Social Security Disability Insurance (SSDI), it’s clear that not everyone will benefit equally.
The Senior Citizens League has projected a modest 2.5% increase, which will disappoint those who were hoping for a more significant boost to their payments. While everyone receiving benefits will see an increase, the amount will vary depending on the size of their current benefits. So, who will receive the smallest increase? Let’s break it down.
Smaller Increases
Not all Social Security, SSI, or SSDI recipients will get the same bump from the 2025 COLA increase. Those with lower benefit amounts will feel this modest 2.5% increase the least. Here are the three groups most likely to receive smaller boosts:
SSI Recipients
SSI beneficiaries often receive smaller checks than those on Social Security retirement. Currently, the maximum SSI payment is around $943 per month. With a 2.5% increase, this would rise to $966.5—a difference of just $23 per month. While this may seem like a minor boost, the reality is that many SSI recipients don’t even qualify for the maximum payment. The average SSI check is around $698, meaning after the 2.5% increase, the payment will jump to about $715, adding only $17 per month.
For older adults aged 65 and over who rely on SSI, the average monthly benefit is even lower at $574. These recipients will see their payments increase by only $14 per month—hardly a noticeable change.
Low Social Security Payments
Social Security recipients who receive smaller monthly checks will also see less money after the 2025 COLA increase. For example, a retiree getting $500 a month in 2024 will see their payment rise to $512.5 with the 2.5% COLA adjustment. That’s an increase of only $12.50 per month.
This means that, while everyone receives the same percentage increase, the dollar amount varies greatly depending on the size of their existing benefit. A person receiving a higher monthly Social Security payment of $2,000, for instance, would see a $50 increase. So, the lower the payment, the smaller the dollar increase.
SSDI Recipients
Like retirees and SSI recipients, SSDI beneficiaries with smaller checks will feel the smallest effect from the COLA. Many SSDI recipients who are on lower benefits—often because they didn’t work long enough to qualify for larger amounts—will only see a minimal increase. If an SSDI check is $500 per month, the 2.5% adjustment will increase that amount by just $12.50.
For SSDI recipients already struggling to make ends meet, this increase may not cover much beyond basic expenses, such as groceries or gas, making it feel almost negligible in the grand scheme of things.
Payment and Boost
The key takeaway here is that the lower your Social Security, SSI, or SSDI check, the less impactful the COLA increase will seem. While the percentage is the same for everyone, the actual amount of money added to smaller checks is much less noticeable compared to those with higher benefits.
Take the maximum SSI payment of $943: after a 2.5% increase, this becomes $966.5—just $23 more per month. But the average SSI recipient receives a far lower monthly payment, and as a result, their boost will be much smaller. Those receiving around $698 in SSI will get just $17 more, while recipients aged 65 and older, with an average payment of $574, will see only $14 extra per month.
Here’s a quick breakdown of some potential increases:
| Payment Amount | 2025 COLA Increase (2.5%) | New Amount |
|---|---|---|
| $500 | $12.50 | $512.50 |
| $943 (Max SSI) | $23.00 | $966.50 |
| $698 (Avg. SSI) | $17.00 | $715.00 |
| $574 (SSI 65+) | $14.00 | $588.00 |
| $2,000 | $50.00 | $2,050.00 |
The difference is clear: smaller payments lead to smaller increases.
Although every bit helps, for recipients on the lower end of the benefit scale, this small increase won’t drastically change their financial situation. The cost of basic living expenses continues to rise, and for many, the 2025 COLA increase may not keep pace with inflation in essentials like rent, utilities, or healthcare.
While the 2.5% COLA adjustment might sound positive, its effect will be unevenly felt, particularly among those with smaller monthly checks.
FAQs
Who gets the smallest boost from the 2025 COLA increase?
SSI, SSDI, and retirees with low benefits will get the smallest boosts.
How much will SSI recipients get after the 2025 COLA?
The average SSI recipient could see their payment rise to about $715.
Why do some people receive less from the COLA increase?
Those with lower benefit amounts receive smaller dollar increases.
What is the 2025 COLA increase percentage?
The projected COLA increase for 2025 is approximately 2.5%.
Will the COLA increase cover inflation?
For many, especially those with lower benefits, it may not fully cover rising living costs.
