Understanding the 2025 Cost of Living Adjustment
Every year, Social Security adjusts benefit payments to reflect inflation. In 2025, everyone receiving Social Security retirement, Social Security disability, and Supplemental Security income will see a 2.5% increase in their benefits. This means an increase of about $50 per month:
- Average monthly SSDI (2024): $1,580
- Maximum monthly SSI (2024): $967
The cost-of-living adjustment (COLA) also increases the maximum monthly benefit amount. The maximum monthly benefit for disability and retirement is increasing to $4,018 per month.
The benefit increase will take place in January 2025. Social Security will start mailing account notices in December. Anyone with a “my Social Security” account will be able to view their COLA notice online. You can create an online account at www.ssa.gov/myaccount.
Work Earning Thresholds
The COLA also increases the eligibility criteria for Social Security disability benefits. The updated eligibility criteria for Social Security disability means people have more flexibility in how much they can work while applying for and receiving benefits. The new substantial gainful activity threshold is $1,620 per month (this is the amount you must make less than to be eligible for Social Security disability benefits). The trial work period threshold is increasing to $1,160 per month (this is how much you can earn from work while already receiving disability benefits).
Additionally, the amount it takes to earn one quarter of coverage, for retirement and disability coverage, is increasing to $1,810. This means you need to earn at least $7,240 a year to earn all four quarters of credit.
For more information, read the Social Security Press release.
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