What To Know About Changes To SSDI For 2025?

In 2025, Social Security Disability Insurance (SSDI), Supplemental Security Income (SSI), and other benefits for disability and retirement will increase by 2.5% to keep up with the rising cost of living. 

If you’re receiving $1,000 a month from SSDI in 2024, you can expect to get an extra $25 each month in 2025. So, what changes are coming to social security in 2025 for working people?

For SSI recipients:

• The maximum federal payment will increase from $943 to $967 per month for individuals. Couples who receive $1,415 in 2024 may get $1,450 in 2025. However, these amounts may be reduced if you work, have other income, or live in certain situations.
• For qualifying students. Those under 22 who receive SSI benefits and attend high school or college for a certain number of hours each week can earn up to $2,350 per month (with a yearly limit of $9,460) in 2025. That too, without it affecting your SSI payments. All thanks to the Student Earned Income Exclusion work incentive.

Key Areas of Change

Substantial Gainful Activity

The Substantial Gainful Activity (SGA) limit shows how much money you can earn while still being eligible for SSDI benefits. Each year, the Social Security Administration (SSA) updates the SGA limits depending on inflation and cost-of-living changes.

Because of inflation, the 2025 SGA limit for disability is expected to rise.

SGA Limit	Blind	Non-Blind
2024	$2,460	$1,470
2025	$2,550	$1,530

Impact on Workers Testing Their Ability to Work: 

The increase would allow people getting SSDI benefits to earn a little more money while still keeping their benefits. It’s especially helpful for those testing their ability to return to work without losing their financial support.

Changes to the Trial Work Period (TWP)

The Trial Work Period (TWP) allows people receiving disability benefits in 2025 to test their capability to work for nine months that too with benefits.

When they complete the nine months, the Social Security Administration (SSA) will review whether their earnings exceed the Substantial Gainful Activity (SGA) limit. It’s done to decide if your benefits will continue or stop.

TWP Limit	Amount
2024	$1,050
2025	$1,100 or more

Same as the SGA limit, the TWP threshold is expected to rise in 2025. SSDI recipients will get a chance to earn more during their trial work months. 

Policy Proposals: Some proposals suggest increasing the Trial Work Period beyond nine months. Or, providing SSDI recipients with more flexibility in using their trial work months, such as spreading them out over a longer period.

Cost-of-Living Adjustment (COLA)

The Cost-of-Living Adjustment (COLA) is an annual increase in Social Security benefits (including SSDI) to help recipients keep up with rising living costs due to inflation. So, what is the cost-of-living raise for 2025?

COLA Limit	Percentage
2024	Increase of 8.7%
2025	Increase of 5%

Impact on Monthly Benefits: The COLA increment will directly affect the amount SSDI recipients get each month, helping them adjust to the rising cost of living.

SSDI Application Process

Several lawmakers and advocacy groups are working on reforms to make the SSDI application process more efficient and less stressful for applicants. 

These proposed changes cut down on the long waiting times. It gives faster access to benefits for those with severe disabilities.

Shorter Processing Times for Severe Disabilities: Fast-tracking Social Security Disability Insurance claims for people with conditions that are disabling. These include certain terminal illnesses or severe disabilities listed in the SSA’s Blue Book.

Application Process: There are also talks about making the SSDI application forms simpler. It is especially for older adults and veterans to reduce complexity and improve approval rates. Of course, it is applicable for those who clearly meet the disability criteria.

Increased Awareness of Mental Health Disabilities

People are recognizing how mental health conditions affect daily life. There’s a growing effort to make it easier for those with mental health disabilities to qualify for SSDI. 

Some of the conditions are already included in the SSA’s Blue Book listing, such as – 

• Depression, 
• Anxiety, and 
• Post-traumatic stress disorder (PTSD)

However, some proposed changes aim to make it easier for people with these conditions to qualify.

Mental Health Criteria: Changes may be made to help people with mental health conditions qualify for Social Security Disability Insurance. These offer clearer definitions and less subjective rules for conditions like chronic depression and anxiety.

Focus on Medical Evidence: The SSA might give more importance to medical proof from psychologists and psychiatrists when deciding mental health-related claims.

To Sum Up

With some possible changes to SSDI in 2025, it’s more important than ever to stay updated on these changes.

If you’re planning to get a raise or work more hours in 2025, it’s important to know these new amounts. Earning more than these limits could cause your SSDI payments to stop, but there are work incentives that can help reduce the impact. 

If you think you might earn more than the limits, it’s a good idea to seek personalized advice.