SSDI payments may last a lifetime. If you begin collecting disability benefits in the United States and stay eligible, you may continue to receive them for the remainder of your life. When you reach Full Retirement Age, they will automatically convert to retirement benefits, but you will get the same amount. A low benefit payout may be cause for concern.
However, will the SSDI payout amount remain the same? Will your disability benefits increase over time? In fact, the Social Security Administration modifies monthly benefits for retirees, SSDI, and SSI beneficiaries when inflation changes. This annual adjustment, known as COLA (cost of living adjustment), takes effect on the first day of the year, January 1.
Will all SSDI recipients get the same COLA increase regardless of the amount?
All Social Security Disability Insurance benefits typically receive the same COLA rise. As of October 10, 2024, the new COLA increase for January 2025 was 2.5%.
The maximum amounts for Social Security benefits do not rise in the same proportion as the rest of the payments. For example, the greatest SSDI payout in 2024 is $3,822, increasing to $4,018 in 2025. So that is far higher than the 2.5% for most Disability Insurance beneficiaries.
Actually, the average SSDI benefit is approximately $1,542. After the COLA increase in 2025, it will be around $1,580, or 38 dollars higher than in 2024. Depending on the level of inflation, your payout may increase or decrease.
How much have SSDI benefits increased in the last decade?
It’s interesting to see how Social Security Disability Insurance benefits develop over time. This manner, you can get a sense of how much things have changed over time. This will help you plan your financial future.
Here is a list of recent COLA increases for Social Security (retirement, SSDI, and SSI) and the year they began or will become effective:
- 2015 1.7
- 2016 0.0
- 2017 0.3
- 2018 2.0
- 2019 2.8
- 2020 1.6
- 2021 1.3
- 2022 5.9
- 2023 8.7
- 2024 3.2
- 2025 2.5