The September Supplemental Security Income (SSI) payment, valued at up to $943, will be distributed to millions of beneficiaries in just 14 days. These payments, scheduled for September 1st, are intended for individuals living with debilitating disabilities that affect their ability to earn an income, according to the Social Security Administration (SSA).
SSI applicants who apply individually may receive up to $943 per month, while couples applying jointly may qualify for up to $1,415. Additionally, “essential persons” who provide necessary care to SSI recipients can receive up to $472. Inflation has led to a 3.2% increase in these payments compared to the previous year.
To be eligible for SSI, applicants must be at least partially blind or have a “physical or mental condition that severely limits daily activities for 12 months or more, or is expected to result in death.” It is important to note that SSI payments and regular Social Security benefits are separate; receiving one does not automatically qualify an individual for the other.
Beneficiaries can utilize an SSA-provided calculator to determine the total amount of their payment.
Social Security COLA Increase for 2025 Could Be the Lowest in Four Years
The Cost of Living Adjustment (COLA) for Social Security is likely to be the lowest since 2021, as recent reports indicate a decrease in inflationary pressure. Current estimates suggest that the COLA for 2025 will be around 2.6%, a slight decrease from the 2.7% projected in July and significantly lower than the 3.2% increase in the previous year. This decline reflects the ongoing reduction in inflation rates.
However, while lower inflation may be seen as good news, it has a direct impact on the COLA, resulting in a smaller increase for retirees. Although a lower inflation rate may lead to slower price increases, it does not alleviate the current costs of essentials such as food, utilities, or housing, which many retirees struggle to afford.
The COLA adjustments are based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), a measure of price changes for a selected group of goods and services, including food, energy, and healthcare. This index is reported monthly by the federal Bureau of Labor Statistics and is a subset of the broader Consumer Price Index (CPI).
In May 2024, the SSA published wage base projections for the period from 2025 to 2033 in the Social Security and Medicare Trustees Report. These projections estimate a wage base increase in 2025, ranging from $174,900 to $175,500, compared to $168,600 in 2023. The wage base is the maximum income subject to Social Security tax.
How is the COLA Amount Determined?
The COLA is determined based on inflation observed in July, August, and September in the CPI-W. These months are crucial for setting the increase in Social Security benefits for the following year. The SSA calculates the percentage change between the average prices in the third quarter of the current year and the third quarter of the previous year. Until then, the projected amount may fluctuate depending on the final inflation figures for these months.
Recent proposals to change the CPI used to formulate the COLA, aiming to better reflect the costs paid by seniors, have so far failed. The proposed changes would base the COLA on the Consumer Price Index for Americans aged 62 and older (CPI-E), which is considered to more accurately reflect the expenses of older adults. Medical expenses, a growing burden for seniors, have a higher weighting in the CPI-E than in the CPI-W, the current measure used to determine the annual COLA.
Projected COLA for 2025
The projected COLA for 2025 is currently estimated at 2.57%. This projection is based on July’s CPI figures, the first of three sets of numbers the SSA will use to determine the 2025 COLA.
The cost-of-living adjustment for 2025 will be reflected in Social Security checks starting in January of that year. This occurs annually, though occasionally the payment may arrive a few days earlier due to holidays or weekends.
Ultimately, the final COLA for 2025 will not be confirmed until October.