The Social Security Administration (SSA) has announced important updates for people receiving Social Security Disability Insurance (SSDI).
These include a 2.5% COLA (Cost of Living Adjustment) increase in payments starting January 2025 and higher limits for Substantial Gainful Activity (SGA). Here’s what you need to know to plan your finances better.
What Does COLA Mean for SSDI Payments in 2025?
The 2025 COLA adjustment means an increase in SSDI payments. The average monthly check will rise from $1,542 to $1,580. This change ensures that your benefits keep up with inflation. To check your exact payment, log in to your My Social Security account.
New Substantial Gainful Activity (SGA) Limits
SGA refers to the earnings limit used by the SSA to decide whether you qualify for SSDI benefits. The updated limits for 2025 are:
- Non-Blind Individuals: $1,620/month (up from $1,550 in 2024).
- Blind Individuals: $2,700/month (up from $2,590 in 2024).
If you earn more than these amounts, you may no longer qualify for SSDI.
Trial Work Period (TWP) Base Rate Increase
For those testing their ability to return to work under the Trial Work Period program, the monthly base rate will rise from $1,110 in 2024 to $1,160 in 2025. This allows you to explore employment options without immediately losing SSDI benefits.
Understanding SGA and SSI
It’s essential to know that SGA thresholds apply to SSDI but not Supplemental Security Income (SSI). Blind recipients have higher SGA limits than non-blind recipients. These adjustments are tied to increases in the national average wage index.
The 2025 SSDI updates, including the COLA increase and higher SGA thresholds, aim to provide more financial stability for beneficiaries. However, staying informed about these changes is vital, especially if you plan to work while receiving SSDI.
What is the 2025 COLA increase for SSDI payments?
The 2025 COLA provides a 2.5% increase, raising the average monthly payment from $1,542 to $1,580.
What is Substantial Gainful Activity (SGA)?
SGA is the monthly earnings limit that determines SSDI eligibility. For 2025, the limits are $1,620 for non-blind and $2,700 for blind individuals.
What is the Trial Work Period (TWP) base rate for 2025?
The TWP base rate is $1,160/month in 2025, allowing beneficiaries to test working without losing benefits immediately.
Do SGA limits apply to SSI?
No, SGA limits apply only to SSDI, not Supplemental Security Income (SSI).
Where can I check my updated SSDI payment?
You can check your updated SSDI payment by logging in to your My Social Security account.
