Big news for millions of Americans: Supplemental Security Income (SSI) payments are getting a boost in 2025. Thanks to a 2.5% cost-of-living adjustment (COLA), married couples could see monthly payments rise to $1,450, while individuals may receive up to $967.
Let’s break down what this means for you, how it works, and what else is changing in the SSI program.
What Is SSI?
Supplemental Security Income (SSI) is a federal program that provides monthly payments to people who are aged 65 or older, blind, or disabled, and who have little or no income. It’s designed to help meet basic needs for food, clothing, and shelter.
What’s Changing in 2025?
đŸ’° New Maximum Payment Amounts
Starting January 2025, SSI payments will increase due to the annual COLA. Here’s how the new maximum monthly payments break down:
- Individuals: Up to $967 (an increase from $943)
- Married couples: Up to $1,450 (up from $1,415)
- Essential persons: Up to $484 (up from $472)
These increases aim to help recipients keep up with rising costs of living.
When Will You See the Increase?
The new payment amounts will take effect in January 2025. However, due to the way the payment schedule works, some recipients may see the increased amount as early as December 31, 2024.
SSI Payment Schedule
SSI payments are typically issued on the first of each month. If the first falls on a weekend or holiday, payments are made on the preceding business day.
How Are COLA Increases Calculated?
The COLA is determined based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). This index measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
New Online Application Process
Starting in December 2024, the Social Security Administration (SSA) is rolling out a new online application process called iClaim. This platform allows individuals aged 18 to 65 who are applying for both retirement and SSI benefits to complete their applications entirely online. The goal is to simplify and speed up the application process.
Changes to In-Kind Support and Maintenance (ISM)
Previously, if you received food or shelter from friends or family, it could reduce your SSI benefits under the ISM rules. Starting in 2025, food assistance will no longer count against your SSI benefits. This change aims to reduce the reporting burden and increase benefit amounts for many recipients.
Impact on Housing Costs
Despite the increase in SSI payments, housing costs in many areas continue to outpace these benefits. For example, in California, fair market rents have grown significantly faster than SSI/SSP grant levels, making it challenging for recipients to afford housing.
Legislative Changes
In January 2025, the Social Security Fairness Act was signed, repealing the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). This change grants affected beneficiaries higher monthly payments, with some seeing retroactive payments and substantial increases.
Key Takeaways
- SSI payments are increasing: Individuals up to $967, married couples up to $1,450.
- COLA for 2025 is 2.5%: Reflects modest inflation adjustments.
- New online application: iClaim platform simplifies the process.
- ISM rule change: Food assistance no longer reduces benefits.
- Housing costs: Still a challenge despite benefit increases.
FAQs
1. Who qualifies for the increased SSI payments?
Individuals who are aged 65 or older, blind, or disabled, and have limited income and resources may qualify for SSI. The increased payments apply to those who meet these criteria.
2. When will I receive my first increased payment?
The increased payments take effect in January 2025. Depending on the payment schedule, some recipients may see the increase as early as December 31, 2024.
3. How do I apply for SSI benefits?
Starting in December 2024, eligible individuals can apply online through the SSA’s iClaim platform. Alternatively, applications can be submitted in person at a local SSA office.
4. Will receiving food from family affect my SSI benefits?
No. As of 2025, food assistance from friends or family will no longer count against your SSI benefits under the ISM rules.
5. How is the COLA determined?
The COLA is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures inflation and cost-of-living changes.