2025 COLA for Social Security Disability (SSD)
Every year, the Social Security Administration (SSA) looks at information about consumer prices and adjusts Social Security disability (SSD) and retirement benefits to keep pace. It’s that time of year again, and the SSA will increase benefits by 2.5% for 2025. Here’s how the SSA determines the increase and why the 2025 cost of living adjustment (COLA) is lower than the boost Social Security and SSD recipients have seen in the past few years.
How the Social Security / SSD COLA is Determined
The Social Security Act sets forth the method for determining the annual COLA for Social Security retirement and SSD benefits. The SSA looks at the year-over-year increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
Inflation in the United States has cooled down significantly over the past year, so the year-over-year increase in late 2024 was significantly smaller than it’s been in recent years. In the past few years, SSD recipients have seen unusually high increases:
- In 2022, the COLA for Social Security benefits was 5.9%
- In 2023, the COLA for Social Security benefits was 8.7%
- In 2024, the COLA for Social Security benefits dropped to 3.2% but was still above the average increase
If you’re a relatively new SSD recipient, this year’s 2.5% COLA might seem unusually low. It’s very close to the average annual increase of 2.6%. Since the COLA is percentage-based, the dollar amount of your 2025 increase will vary depending on the amount of your monthly benefits.
Other Annual Adjustments
The SSA makes other adjustments at the same time as the COLA. One of those is in the amount of income that is subject to withholding for Social Security. This year, that cap is increasing from $168,600/year to $176,100/year.
The amount of monthly income the SSA considers “substantial gainful activity” (SGA) is also increasing, from $1,550 to $1,620. The cut-off for blind applicants will increase from $2,590 to $2,700.
Help for SSD Applicants
SSD can be a lifeline for people who are no longer able to earn a living due to medical problems. Unfortunately, most SSD claims are denied. Whether you are just preparing to apply or have been denied SSD benefits and want to appeal, Disability Help Group is here for you. Our experienced advocates understand the processes and how the SSA assesses claims. We can help you put together the strongest claim package or appeal possible. To learn more, call 800-800-3332 or fill out our contact form here.
