How Much Will SSI, VA, and SSDI Increase in May 2025? SSA Announces New Updates

Published On: May 5, 2025

As 2025 draws closer, millions of Americans relying on SSI, SSDI, and VA benefits are wondering how much extra support they’ll receive through the upcoming Cost-of-Living Adjustment (COLA). For those living on fixed incomes due to age, disability, or military service, even a small boost can make a big difference. COLA increases are designed to help benefits keep pace with rising costs—like groceries, rent, and healthcare.

In this guide, we’ll break down the expected COLA increase for May 2025, how it’s calculated, and how beneficiaries can prepare to make the most of it.

Estimate

Based on current inflation trends, the 2025 COLA increase is estimated to fall between 2% and 3%. While this is lower than the large hikes seen in previous years, it still reflects the steady rise in everyday expenses. Here’s a quick example of how that increase could look:

Current Monthly Benefit	Estimated Increase (2.5%)	New Monthly Benefit
$1,000	$25	$1,025

The increase will apply to recipients of Supplemental Security Income (SSI), Social Security Disability Insurance (SSDI), and Veterans Affairs (VA) benefits.

Meaning

So, what exactly is COLA? The Cost-of-Living Adjustment is an annual tweak to government benefits that helps them keep up with inflation. It’s calculated using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures changes in the cost of common goods and services.

COLA is vital for people on fixed incomes. Without it, rising prices could quickly outpace their benefits, making it harder to afford essentials like food and medicine.

Formula

The SSA uses the CPI-W from the third quarter (July to September) of each year to determine the next year’s COLA. They compare it to the same period from the previous year. If the CPI-W has gone up, so do your benefits.

For example, if prices rise by 2.5%, then benefits increase by about the same amount. While the CPI-W mainly reflects urban spending, it’s still a useful indicator for nationwide inflation and serves as the standard measure for these adjustments.

Forecast

Here’s what to expect for the 2025 COLA increase:

Estimated range: 2% to 3%
Official announcement: October 2024
First payments with increase: January 2025

Even though inflation has cooled off compared to 2022 and 2023, prices for food, rent, and healthcare are still rising. The expected COLA may not fully offset all these costs, but it’s essential support for millions of Americans.

Importance

For those on SSI, SSDI, or VA benefits, even a slight COLA can be the difference between affording prescriptions or skipping meals. Healthcare and housing costs are especially high—and rising faster than average inflation.

Let’s say your rent goes up by $40, but your COLA increase only adds $25 to your benefits. That leaves a gap you’ll need to cover somehow. It’s not perfect, but it helps soften the blow.

Risks

What happens if the COLA doesn’t keep up with inflation? Simple—your money doesn’t stretch as far. You end up paying more for food, rent, and healthcare but receiving the same or just slightly more income. That’s why these yearly adjustments are so closely watched.

Planning

Here are a few practical tips to prepare for the 2025 COLA and make the most of your benefits:

Track spending: Know where your money goes so you can adjust as needed.
Rework your budget: Factor in the new COLA amount, even if it’s small.
Seek other aid: Apply for programs like SNAP, Medicaid, or housing assistance if you qualify.
Look for side income: If possible, consider part-time work or local community support programs to supplement your income.

Economy

The overall economy in 2024 will shape the final COLA figure for 2025. Slower inflation is good news, but persistent issues—like rising energy costs or healthcare prices—could still push up the cost of living, keeping the COLA increase relevant and necessary.