It was announced by the Social Security Administration (SSA) that millions of people will be getting Social Security Disability Insurance (SSDI) payments in the next few weeks.
In line with the Cost of Living Adjustment (COLA), SSDI payments will go up by 2.5% in January 2025. This will make sure that recipients can keep their purchasing power even as prices go up.
December SSDI Payment Schedule
SSDI payments are spread out over a period of time to make sure that funds are delivered on time and that the SSA can handle monthly payments. Based on the recipients’ birth dates, these payments are split into three groups:
- December 11: Payments will be sent to individuals born between the 1st and 10th of any month.
- December 24: Payments will be sent to individuals born between the 20th and 31st of any month.
- December 31: Advance payments will go to SSI beneficiaries to accommodate the January 1 federal holiday.
Some SSDI payments for December have already been sent out, while others will be sent out as the month goes on.
SSDI Payments Scheduled for January with 2.5% COLA Increase
Beneficiaries will get more money every month starting in January 2025, when the 2.5% COLA adjustment takes effect. This rise is meant to help people on SSDI fight inflation by making sure that their purchasing power stays the same even as prices for goods and services go up.
If you are eligible, your maximum monthly SSDI payment will go up to $4,018. This depends on your past income and other factors, such as your age when you became disabled.
The Indexed Average Monthly Profit (AIME) is how the Social Security Administration figures out benefits. It takes into account how much a worker made while they were working and when they became disabled. Also, having other sources of income can change your SSDI benefits, which could mean lower monthly payments if you have them.
Payment Schedule for January
SSDI payments for January will still be made on a schedule based on birth dates, just like they were in December:
- First 10 days of the month: Payments are issued around the middle of the month.
- Second half of the month: Payments are sent later in January, depending on birth dates toward the end of the month.
These spread-out payments make sure that all recipients get their money on time and keep the SSA’s processing capacity in check.
Why the COLA Matters
A big part of how Social Security pays out is the Cost of Living Adjustment (COLA). Every year, the rate of inflation from the previous year is used to figure it out. This makes sure that people who get SSDI can keep buying things even as the cost of living goes up. Beneficiaries can expect this change to show up in their monthly payments starting in January.
Even though the COLA raises payments, experts say that SSDI benefits do not always cover all medical costs, especially since healthcare is so expensive. Because of this, it is strongly suggested that you save money or find other ways to make money.
A Note to SSDI Beneficiaries
It can be hard to understand how SSDI payments work, how COLA increases work, and who is eligible for benefits. It is important for workers to look over their payment history, make sure their SSA information is correct, and plan for their financial future, especially since the COLA adjustment will start to happen in a few months.
As long as SSDI payments and adjustments keep happening in this planned, staggered way, beneficiaries can count on getting money on time to help them deal with the everyday economic problems they face.
For questions about your SSDI benefits or COLA adjustments, contact the Social Security Administration directly.
