The Social Security Administration (SSA) has announced a 2.5% cost-of-living adjustment (COLA) for Social Security Disability Insurance (SSDI) recipients, effective January 2025. This increase is significant for those relying on SSDI benefits, as it not only raises monthly payments but also brings changes to the Substantial Gainful Activity (SGA) thresholds, which are crucial for recipients considering work opportunities.
SSDI COLA Increase: What to Expect
This Article Includes
Starting January 2025, SSDI recipients will see an increase in their monthly benefits due to the 2.5% COLA. The average monthly check will rise to approximately $1,580, up from $1,542. It is essential for recipients to log into their “my Social Security” accounts to verify their specific payment amounts, especially to ensure they remain below the new SGA limits.
New Substantial Gainful Activity (SGA) Thresholds for 2025
With the COLA announcement, SSDI recipients should pay attention to the updated SGA thresholds, which determine eligibility for disability benefits based on earnings. For 2025, the thresholds are as follows:
SGA for Non-Blind Recipients
- 2024: $1,550 per month
- 2025: $1,620 per month
Non-blind disability recipients will see an increase of $70 in the SGA threshold. This means that those earning above $1,620 may risk losing their SSDI benefits.
SGA for Blind Recipients
- 2024: $2,590 per month
- 2025: $2,700 per month
Blind disability recipients will benefit from a more substantial increase of $110 in the SGA limit. This higher threshold reflects the unique challenges faced by individuals who are blind and allows for greater earning potential without jeopardizing benefits.
Trial Work Period (TWP) Update
The Trial Work Period (TWP) threshold, which enables SSDI recipients to test their ability to work without losing benefits, will also see an increase:
- 2024: $1,110 per month
- 2025: $1,160 per month
This increase provides additional flexibility for recipients wishing to explore work opportunities while still receiving their SSDI benefits.
What is Substantial Gainful Activity (SGA)?
Substantial Gainful Activity refers to a specific earnings level set by the SSA. It plays a critical role in determining an individual’s eligibility for SSDI benefits. If a recipient’s earnings exceed the SGA limits, they may lose their disability benefits.
It’s important to note that the SGA limit for blind individuals is higher than that for non-blind recipients, recognizing the distinct circumstances each group faces. Furthermore, the SGA applies to Social Security benefits but not to Supplemental Security Income (SSI) benefits.
Conclusion
The 2025 COLA increase and the revised SGA thresholds are vital updates for SSDI recipients, particularly those contemplating work. Understanding these changes can help beneficiaries navigate their options while maintaining their financial support. Recipients are encouraged to stay informed and make decisions based on their unique circumstances, especially as they consider their work capabilities within the new SGA limits.