With a new year it is important to look at how COLA (a process known as the Cost of Living
Adjustment) is affecting SSDI benefits in 2025.
Every year, Social Security benefits are adjusted through a process known as the Cost of Living
Adjustment (COLA). The adjustment is designed to help beneficiaries keep pace with inflation and
maintain their purchasing power. For 2025, the Social Security Administration (SSA) announced a 2.5%
increase, which translates to an average monthly boost of about $49 for retired individuals.
This percentage is consistent with the historical average COLA increase since 2000, which has been around
2.6%.
While a 2.5% increase may seem modest, it is an important step in ensuring that Social Security
recipients, especially those who rely heavily on their benefits, don’t see a reduction in their standard of
living due to inflation. The COLA is determined based on inflation data for the third quarter of the year,
meaning that any significant