Social Security Disability Insurance (SSDI) recipients have important updates to keep in mind for 2025. Following the recent announcement of the 2.5% Cost of Living Adjustment (COLA), there are new thresholds for Substantial Gainful Activity (SGA) that disability beneficiaries should be aware of, especially if they are considering re-entering the workforce.
Along with the COLA increase, which boosts monthly SSDI checks, changes to SGA levels and the Trial Work Period (TWP) earnings limits could affect those interested in working while receiving benefits.
SSDI Recipients
Starting in January 2025, SSDI recipients will receive a 2.5% COLA increase. This means the average monthly check will rise to approximately $1,580, up from $1,542 in 2024. While this boost offers some financial relief, it’s important for beneficiaries to keep track of their exact payment amount through their my Social Security account to ensure they don’t exceed the SGA threshold if they are working.
New SGA and Trial Work
The Social Security Administration has also updated the income limits for SGA, the metric used to determine if a person’s work activity qualifies them for continued disability benefits. In 2025, these thresholds have been increased, which is particularly relevant for SSDI recipients who wish to work part-time or test their ability to return to full-time employment.
New SGA Levels for 2025
| Category | 2024 SGA | 2025 SGA Increase | 2025 SGA Amount |
|---|---|---|---|
| Non-Blind | $1,550/mo. | +$70 | $1,620/mo. |
| Blind | $2,590/mo. | +$110 | $2,700/mo. |
For non-blind recipients, the SGA threshold will increase from $1,550 in 2024 to $1,620 per month in 2025. For blind individuals, the SGA will rise to $2,700 per month, up from $2,590 in 2024. These limits determine the maximum amount a person can earn before their disability benefits are affected. If a recipient earns more than the SGA, they may lose eligibility for benefits.
New Trial Work Period (TWP)
| Year | Trial Work Period (TWP) Threshold |
|---|---|
| 2024 | $1,110/mo. |
| 2025 | $1,160/mo. |
The Trial Work Period (TWP) allows SSDI recipients to test their ability to work without immediately losing their benefits. In 2025, the TWP threshold will increase to $1,160 per month, up from $1,110 in 2024. During the TWP, a recipient can earn above the SGA limit for a total of nine months without affecting their SSDI benefits. However, if they continue earning above the SGA after the TWP, their benefits may be terminated.
Substantial Gainful Activity (SGA)
SGA refers to the earnings threshold set by the Social Security Administration to determine whether a person’s work activity disqualifies them from SSDI benefits. If a non-blind recipient earns more than $1,620 per month (or a blind recipient earns more than $2,700 per month) in 2025, they are considered to be engaging in Substantial Gainful Activity and may lose their benefits.
Key Points
- Blind recipients: Have a higher SGA threshold because of the unique challenges they face in the workforce. The new limit of $2,700 applies only to Social Security benefits, not to SSI (Supplemental Security Income).
- Non-blind recipients: Face a lower SGA limit ($1,620 in 2025), and this applies to both Social Security and SSI benefits.
It’s crucial to note that SGA limits change each year based on the national average wage index, and beneficiaries should stay updated to avoid accidentally exceeding the limit if they are working.
Maximizing Benefits
For SSDI recipients who are exploring work options, understanding the TWP and SGA thresholds is essential. The increase in 2025 gives beneficiaries a bit more flexibility in earning income without jeopardizing their benefits. However, once the TWP ends, it’s important to monitor earnings closely to avoid surpassing the SGA and losing eligibility for SSDI.
To make the most of the available benefits and avoid any missteps, recipients should regularly check their my Social Security account for updates on payments, eligibility, and thresholds.
The 2025 updates bring a modest increase in SSDI benefits, thanks to the 2.5% COLA, and higher thresholds for both SGA and the Trial Work Period. While these changes offer some financial breathing room for beneficiaries, it’s crucial to stay informed about earnings limits and how they impact eligibility for SSDI benefits. Whether you’re considering work or simply adjusting to the new COLA, these updates help ensure you can maximize your benefits without risking their loss.
FAQs
What is the 2025 COLA increase for SSDI recipients?
A 2.5% increase, raising the average monthly check to $1,580.
What is Substantial Gainful Activity (SGA)?
The earnings threshold that determines whether SSDI recipients are eligible for benefits.
What are the new SGA limits for 2025?
Non-blind: $1,620 per month; Blind: $2,700 per month.
What is the Trial Work Period (TWP)?
A nine-month period during which SSDI recipients can work without losing benefits, with a new threshold of $1,160 per month in 2025.
Does SGA apply to both Social Security and SSI benefits?
SGA applies to both for non-blind recipients but only to Social Security for blind individuals.
