According to Vibes.okdiario , In the United States, there are two main types of disability benefits available: SSDI (Social Security Disability Insurance) and SSI (Supplemental Security Income). These benefits are designed to assist individuals who are unable to work due to a disability, but the eligibility criteria for each program differ.
SSDI vs. SSI: What’s the Difference?
- SSDI is for individuals whose disability prevents them from working for over a year and who have earned enough work credits through past employment. To qualify for SSDI, you must meet Social Security’s strict definition of disability and have a sufficient work history.
- SSI, on the other hand, is designed for individuals who may not have enough work credits to qualify for SSDI but still meet the disability requirements. This benefit is available to both adults and children with disabilities.
COLA (Cost-of-Living Adjustment) for Disability Recipients
In 2024, the Social Security Administration (SSA) announced a COLA increase for disability benefits, which will be reflected in monthly payments.
- SSI recipients will be the first to see the COLA increase. They will receive the 2025 COLA on December 31, 2024, which means their payment for January 1, 2025, will be delivered a day earlier than usual.
- SSDI recipients, on the other hand, will receive the COLA adjustment starting in January 2025. Payments will be made beginning January 3, 2025, for those who have been on disability benefits since before May 1997.
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Payment Schedule for SSDI and SSI Recipients
- SSI recipients will receive their January 2025 payment with the COLA increase on December 31, 2024, since the actual payment date falls on a Federal Holiday.
- SSDI recipients who are due to be paid on January 3, 2025, will be the first to receive the COLA increase. Payments for other SSDI recipients will follow on the 8th, 15th, and 22nd of January 2025.
However, SSDI recipients with birthdays falling between 21st and 31st of the month will have to wait a little longer for their COLA increase.
Final Thoughts
The COLA adjustment is an important step to ensure that disability payments keep up with inflation. For those receiving SSI or SSDI benefits, it’s important to understand when the COLA increase will be reflected in your monthly payment to better plan your finances in 2025.
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