As 2025 approaches, millions of Social Security beneficiaries, including those receiving Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI), are preparing for a change in their monthly payments. This change comes from the annual cost-of-living adjustment (COLA), which the Social Security Administration (SSA) applies to benefits to help recipients keep pace with inflation. For 2025, the COLA increase is set at 2.5%, offering a modest but meaningful boost to millions of Americans.
For individuals managing Social Security disability conditions, understanding how this adjustment impacts your SSDI benefits is essential. At Second Chance Lawyer, Merryl Jones assists clients in navigating these complex changes and maximizing the benefits they deserve.
What is the COLA Increase and Why Does It Matter?
The COLA is an annual adjustment to Social Security benefits based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Its purpose is to ensure that the purchasing power of Social Security payments does not erode as the cost of living rises. This inflation-based increase is vital for those dependent on fixed incomes, including retirees, disabled workers, and their families.
In 2025, the SSA announced a 2.5% COLA increase. This means the average monthly Social Security benefit will rise from $1,927 in 2024 to $1,976. For couples where both receive benefits, the monthly average will increase from $3,014 to $3,089. While this adjustment offers some relief, it is the smallest increase since 2020, when the COLA was just 1.6%, and notably lower than the 8.7% rise in 2023. This shift reflects a decrease in inflation during the third quarter of 2024 compared to the same period the previous year.
Inflation and Its Impact on Social Security Disability Conditions
For individuals with Social Security disability conditions, inflation can severely impact their financial stability. Many daily expenses, such as housing, utilities, food, and healthcare, tend to increase faster than the average inflation rate, especially healthcare costs.
Advocates for Social Security beneficiaries argue that the COLA increase does not fully account for the rising costs of housing and medical care. For example, in 2025, Medicare Part B premiums, which are deducted from Social Security payments, will increase by $10.30 to $185 per month. This increase partially offsets the COLA boost, reducing the net gain for many beneficiaries who rely on their SSDI benefits to cover essential expenses.
Despite these challenges, the COLA adjustment remains a crucial mechanism to help beneficiaries maintain their standard of living amid changing economic conditions.
Other 2025 Social Security Changes Beneficiaries Should Know
Beyond the COLA increase, other Social Security changes related to inflation and earnings thresholds will affect workers and beneficiaries in 2025:
- Payroll Tax Wage Base Increase: Social Security payroll taxes apply only to earnings up to a certain limit. In 2025, this threshold rises to $176,100, up 4.45% from $168,600 in 2024. Workers and employers both pay 6.2% of wages up to this limit, totaling a 12.4% tax on earnings.
- Earnings Limit for Retirees Under Full Retirement Age: Beneficiaries who claim Social Security before reaching full retirement age but continue working face an earnings limit. If they earn above this limit, a portion of their benefits may be withheld. In 2025, the allowable earnings before withholding will increase by nearly 5%, enabling beneficiaries to keep more of their SSDI benefits if they continue working.
- Full Retirement Age Definition: The full retirement age ranges between 66 and 67, depending on birth year. This affects how earnings are tested and the calculation of benefits, making understanding these rules important for beneficiaries managing Social Security disability conditions.
How to Get Help with Social Security Benefits
Applying for Social Security benefits and understanding the impact of the COLA increase can be complex. Many beneficiaries face long wait times at SSA offices or on customer service calls. Recent efforts have reduced call wait times from an average of 42 minutes to 11 minutes, but delays remain common due to staffing shortages and a backlog of disability claims.
Creating a personal account on the SSA website (ssa.gov/myaccount) is one of the best ways to manage your benefits and avoid long wait times. Through this secure portal, beneficiaries can:
- View their Social Security statements and verify earnings records
- Estimate future monthly benefits under different claiming scenarios
- Apply for benefits or report changes in circumstances
- Monitor the status of ongoing claims
Maintaining an accurate earnings record is crucial since errors can reduce your SSDI benefits or retirement income. Common mistakes include employers reporting wages under incorrect Social Security numbers or failure to update name changes.
Why Consult a Social Security Disability Lawyer?
Social Security Disability law is complex and requires understanding detailed regulations about Social Security disability conditions, eligibility criteria, and benefit calculations. Many individuals find it beneficial to work with an experienced Social Security disability attorney to:
- Ensure your application is complete and accurately reflects your medical condition
- Maximize your SSDI benefits based on your documented limitations and work history
- Prepare for and respond to SSA requests, interviews, or appeals
- Navigate the appeals process if your initial claim is denied
At Second Chance Lawyer, our attorneys in Temple and Waco, TX, have extensive experience helping clients understand how legislative changes like the COLA affect their benefits. We work closely with clients to protect their rights and secure the financial support they deserve.
Preparing for Your Future with Social Security
Even if you are years away from retirement or disability eligibility, it’s wise to create or update your SSA online account to track your earnings and estimated benefits. You need 40 credits, typically earned over 10 years of work, to qualify for most Social Security benefits. In 2025, earning $1,810 counts as one credit, with four credits needed annually. Regularly reviewing your record can prevent surprises when you file for benefits, ensuring you receive the maximum entitled SSDI benefits.
Contact Merryl Jones – Second Chance Lawyer Today
The 2.5% COLA increase for 2025 provides necessary support but also highlights the ongoing challenges beneficiaries face due to inflation and rising costs. If you or a loved one is dealing with Social Security disability conditions and needs guidance on navigating the benefits system, contact Merryl Jones – Second Chance Lawyer.
Call us at (254) 776-3611 for Waco or (254) 493-0345 for Temple to schedule a free case evaluation. Let our knowledgeable Social Security disability attorneys help you understand your rights and secure the benefits you deserve.
