If you are disabled and you receive benefits from the Social Security Administration, those benefits are likely an essential source of financial support and stability during a time when you’re unable to work and earn an income as you otherwise normally would. Understandably, you probably want to do all you can to protect and preserve your right to continue receiving those benefits. That’s why it’s important to understand the rules and conditions that apply to receiving those benefits – and to be aware of any changes in either the conditions for benefits or the amount of payments, should they occur. Let’s take a closer look at what changes may be coming to Social Security benefits in 2025.
Your Benefits – Considering the Calculations in 2025
As you likely already know, if you receive disability benefits, the Social Security Administration offers two types of disability benefits, depending upon the circumstances of eligible individuals. These include Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) benefits. While these benefits differ in certain ways, both are intended for individuals who have a qualifying medical disability that has rendered them disabled for at least one continuous calendar year or more.
Each year, the Social Security Administration sets limits on how much an individual might receive in benefits. These limits are based on a variety of factors, including cost of living, inflation, and other economic considerations. In 2024 for example, the maximum SSDI amount is $3,822 per month. For those who receive SSI benefits, the maximum monthly payment amount is $943 per month for an eligible individual and $1,415 per month for an eligible couple.
In 2025, these amounts are expected to increase slightly in light of the fact that the cost of living continues to rise. This is known as the COLA (cost of living adjustment), and it is an amount typically intended to help recipients keep up with inflation. Currently, analysts believe that there could be a 2.5% increase in benefits in 2025 as a cost-of-living adjustment, which could boost the maximum SSDI payment amount from $3,822 to around $3,917 per month. The 2025 COLA is anticipated to be finalized some time in October of 2024.
A Look at Other Potential Changes
While the cost-of-living adjustment is the most significant change that disability beneficiaries will notice immediately in 2025, there will be other changes to the Social Security program generally. These changes may not necessarily affect those receiving disability benefits, but it can nevertheless be helpful to understand changes to the Social Security system generally.
Potential changes include:
- An increase to the taxable earnings limit: Social Security benefits are primarily funded through a payroll tax. Currently, the law limits the amount of a particular income that is subject to taxation, and those who earn income above the threshold do not pay Social Security taxes on all of their wages. The income limit is adjusted annually based on a variety of economic factors and is expected to increase in 2025.
- Some Social Security recipients may have benefits withheld in 2025: It is possible that in 2025, those who are still working and who receive Social Security retirement benefits may have some of their benefits withheld temporarily if they are under full retirement age and if their particular earnings exceed the retirement earnings test exempt amounts. However, earnings limits no longer apply once a beneficiary reaches full retirement age.
As noted, the preceding two changes may not directly affect those who receive disability benefits but may be important if you are receiving disability benefits and also approaching retirement age. This may raise questions about how the two benefits interact and how one might affect the other. This is understandable.
It’s normal to feel overwhelmed and to worry about keeping track of the changes that the Social Security Administration makes to its various benefits programs each year. That is only one of many reasons why it’s essential to consult with a legal team that knows and understands the law and can provide advice regarding any potential changes and how they might affect you and your particular circumstances. At Muse Disability, we’re here for you.
Call Muse Disability Today
Whether you’ve been receiving disability benefits for a while or if you’re just filing a claim for the first time, you need a knowledgeable and experienced legal team on your side. At Muse Disability, we are that team. We understand every aspect of the law pertaining to disability benefits, and we know the best strategies to pursue on your behalf. We’ll help clarify any confusion and give you the excellent guidance and representation you need as you seek the benefits you deserve. If you’re ready to get started, give us a call today. We look forward to speaking with you soon.