No, COLA (Cost-of-Living Adjustment) and SSI (Supplemental Security Income) are not the same; rather, the COLA is an annual percentage increase applied to SSI and other benefits to keep pace with inflation. While SSI is a monthly payment program for aged, blind, or disabled individuals with low income, the COLA is the yearly adjustment applied to those payments.
COLAs for the Supplemental Security Income (SSI) program are generally the same as those for the Social Security program. However, COLAs for SSI have generally been effective for the month following the effective month of Social Security benefit increases. See SSI historical payment standards for more detail.
Retired workers receive the annual COLA from the Social Security Administration (SSA), as do survivors, those getting Social Security Disability Income (SSDI) and recipients of Supplemental Security Income (SSI) payments.
Cost-of-Living Adjustment (COLA) COLA is an annual cost-of-living increase that begins the second calendar year after retirement and helps your retirement benefit keep up with the rate of inflation.
History of Automatic Cost-Of-Living Adjustments
The purpose of the COLA is to ensure that the purchasing power of Social Security and Supplemental Security Income (SSI) benefits is not eroded by inflation.
A COLA increases a person's Social Security retirement benefit by approximately the product of the COLA and the benefit amount. The exact computation, however, is more complex. Each Social Security benefit is based on a "primary insurance amount," or PIA.
The COLA was 2.5 percent in 2025. Nearly 71 million Social Security beneficiaries will see a 2.8 percent COLA beginning in January 2026. Increased payments to nearly 7.5 million people receiving SSI will begin on December 31, 2025. (Note: Some people receive both Social Security benefits and SSI).
Key takeaways
Social Security is a federal program that provides income to retirees, survivors of deceased workers and disabled people. The average Social Security check for retirees is around $2,000 per month — slightly higher than the average benefit for survivors and people with disabilities.
The extra $144 added to Social Security usually comes from the Medicare Part B Giveback benefit, offered by some Medicare Advantage (Part C) plans, which pays back some or all your Part B premium, showing up as extra money in your check if it's deducted from your Social Security. To qualify, you need Original Medicare (Parts A & B), pay your own Part B premium, live in a plan's service area, and enroll in a specific Medicare Advantage plan that offers this "rebate," with the amount varying by plan and location.
For 2026, the maximum monthly Supplemental Security Income (SSI) payment is $994 for an individual and $1,491 for an eligible couple, reflecting a 2.8% Cost-of-Living Adjustment (COLA) from 2025 levels, with these increased amounts first appearing in December 2025 payments.
The maximum Supplemental Security Income (SSI) payment for 2025 is $967 per month for an individual and $1,450 per month for a couple, effective January 1, 2025, due to a 2.5% Cost-of-Living Adjustment (COLA). Your actual payment in April 2025 will be this federal maximum unless you have countable income or live in a state that provides a supplemental payment, which could lower your amount.
The 2.8 percent cost-of-living adjustment (COLA) will begin with benefits payable to nearly 71 million Social Security beneficiaries in January 2026. Increased payments to nearly 7.5 million SSI recipients will begin on December 31, 2025.
You get two Social Security checks in December if you receive Supplemental Security Income (SSI), not regular Social Security, because the January payment gets moved to late December (usually Dec 31) since January 1st (New Year's Day) is a federal holiday, resulting in a December 1st payment and a December 31st payment for January's benefits, with the later one often including the COLA increase.
Effective January 1, 2025, the Federal benefit rate is $967 for an individual and $1,450 for a couple. Some States supplement the Federal SSI benefit with additional payments.
The estimated average amount changes monthly. For example, the estimated average monthly Social Security retirement benefit for January 2026 is $2,071. When you're ready to apply for retirement benefits, use our online retirement application, the quickest, easiest, and most convenient way to apply.
The average SSI payment varies by age, but for 2025, it's around $967 for an individual, with averages for specific groups like those under 18 being higher and seniors (65+) often lower, though these averages are below the $967 federal maximum for individuals and $1,450 for couples in 2025, with actual amounts reduced by other income.
A Cost-of-Living Adjustment (COLA) is a permanent annual increase to your pension to help offset the impact of inflation. Once you are eligible, you automatically receive a COLA increase each September.
If Social Security isn't enough, you should supplement your income through other savings (401k, IRAs, brokerage accounts), explore government aid like SSI, SNAP, and Medicaid, consider working part-time, use programs like NCOA's BenefitsCheckUp to find assistance, potentially delay claiming benefits for a higher monthly payout, or look into annuities for guaranteed income.
The average retiree's monthly expenses in the U.S. hover around $4,600 to $5,400, with younger retirees (65-74) spending more, often over $5,000 monthly, while those 75+ spend closer to $4,400 as transportation and entertainment costs decrease, though healthcare costs can rise, with housing, transportation, healthcare, and food being the biggest categories.