The 2025 COLA increased SSDI payments by 2.5 percent
In October 2024, the Social Security Administration announced that the 2025 Cost of Living Adjustment (COLA) would be 2.5 percent. This means that starting in January 2025, your monthly SSDI payment increased by 2.5 percent from what you received in 2024. If you were getting $1,000 a month, your new payment is $1,025.
The COLA is calculated each year based on inflation data from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). When prices rise during the year, Social Security adjusts benefit amounts so that the money you receive keeps roughly the same purchasing power. The 2.5 percent increase for 2025 reflects the inflation that occurred between the third quarter of 2023 and the third quarter of 2024.
You do not need to do anything to receive this increase. If you are already on SSDI, the higher payment started automatically in January 2025. Your Social Security statement and any payment records you access online will show the new amount.
Key Takeaways
- Your January 2025 SSDI payment is 2.5 percent higher than your December 2024 payment, with no action required on your part.
- The COLA is based on inflation measured by the Consumer Price Index and changes each year depending on how much prices rose.
- You can see your new payment amount in your online Social Security account or by calling 1-800-772-1213.
- The COLA applies to all SSDI beneficiaries at the same time, though the dollar amount of the increase depends on what you were receiving before.
How the COLA is calculated each year
Social Security calculates the COLA by comparing the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from July, August, and September of one year to the same three months of the previous year. If the index is higher, that percentage increase becomes the COLA. If the index is the same or lower, there is no COLA that year—though this has not happened since 2010.
The CPI-W measures price changes for food, housing, transportation, medical care, and other goods and services that wage earners and clerical workers typically buy. It is published by the Bureau of Labor Statistics, a division of the U.S. Department of Labor. Social Security does not choose the COLA amount; the law requires them to use this specific index.
The COLA announced in October applies to payments beginning in January of the following year. So the 2.5 percent COLA announced in October 2024 took effect on January 1, 2025. The COLA for 2026 will be announced in October 2025 and will take effect in January 2026.
What your new payment amount means for your budget
A 2.5 percent increase sounds small, but the actual dollar amount depends on what you were receiving. Someone getting $1,200 a month receives an additional $30. Someone getting $1,800 a month receives an additional $45. Over a year, that is $360 to $540 in extra income.
The COLA is meant to help you keep up with rising costs, but it does not always match the inflation you actually experience. If you spend more on medical care or housing than the average wage earner, the CPI-W may not reflect your personal inflation rate. Some years the COLA is higher than the inflation you see in your own life; other years it is lower.
If you have a representative payee—someone who receives your payment on your behalf—they will see the increased amount in your account. If you manage your own payment, you will see it deposited to your bank account on your regular payment date in January.
COLA amounts from recent years
The COLA varies from year to year because inflation changes. Here is what the adjustment has been for the past several years:
| Year | COLA Percentage |
|---|---|
| 2024 | 3.2 percent |
| 2023 | 8.7 percent |
| 2022 | 5.9 percent |
| 2021 | 1.3 percent |
| 2020 | 1.6 percent |
The 2023 COLA of 8.7 percent was the highest in four decades, reflecting the sharp rise in inflation during 2021 and 2022. The 2025 COLA of 2.5 percent is lower, showing that inflation has moderated from those levels. Future COLAs will depend on inflation between now and the time they are announced.
How to check your new payment amount
You can see your updated SSDI payment in several ways. The easiest is to create or log into your account at ssa.gov using your username and password. Once logged in, go to "Benefit Verification" or "Payment History" to see your current monthly amount and recent deposits.
You can also call Social Security directly at 1-800-772-1213 (TTY 1-800-325-0778 for deaf and hard of hearing callers). A representative can tell you your new payment amount and answer questions about how the COLA was applied to your account. The phone line is open Monday through Friday, 7 a.m. to 7 p.m. Eastern time.
If you receive a paper statement in the mail, it will show your new payment amount. Social Security typically sends updated statements in December for changes that take effect in January, though not all beneficiaries receive paper statements.
What happens if you think the COLA was applied incorrectly
Mistakes in explore the COLA are rare because the adjustment is automatic and calculated the same way for all beneficiaries. However, if you believe your payment is wrong, you can request a detailed explanation from Social Security.
Call 1-800-772-1213 and ask to speak with a representative about your payment amount. Have your Social Security number ready and be prepared to explain what you think is incorrect. The representative can walk through how your new amount was calculated and show you the math.
If you disagree with Social Security's explanation, you have the right to request a reconsideration. This is a formal process where Social Security reviews your case again. You can request a reconsideration by calling the same number or by visiting your local Social Security office in person.
Frequently Asked Questions
Does the COLA explore if I just started receiving SSDI in 2025?
No. The COLA applies only to people who were already receiving SSDI in December 2024. If you began receiving benefits in January 2025 or later, your first payment is calculated at the current rate, but you do not receive a separate COLA increase on top of that. You will become part of the COLA adjustment starting in January 2026.
Will the COLA affect my other benefits or my taxes?
The COLA increase may affect whether you owe federal income tax on your SSDI benefits. If your combined income (SSDI plus other income) crosses certain thresholds, a portion of your benefits becomes taxable. A higher SSDI payment could push you over that threshold. Consult a tax professional if you are unsure whether your benefits are taxable.
Can I opt out of the COLA increase?
No. The COLA is automatic and applies to all SSDI beneficiaries. You cannot choose to keep your old payment amount instead of the increased amount. The increase is permanent and becomes your new baseline for future COLAs.
What if I am on both SSDI and SSI?
If you receive both SSDI and Supplemental Security Income (SSI), the COLA applies to your SSDI portion only. SSI has a different adjustment mechanism and does not use the same COLA. Your SSDI payment increases by 2.5 percent, but your SSI payment follows its own rules.
How do I know what next year's COLA will be?
Social Security announces the next year's COLA in October. You can find the announcement on the Social Security website at ssa.gov or by calling 1-800-772-1213. The announcement includes the percentage and the effective date, which is always January 1 of the following year.