As we look ahead to 2025, several changes and proposals are on the horizon for Social Security Disability Insurance (SSDI) that could impact both new applicants and those currently receiving benefits. The SSA regularly updates its policies to adjust for economic shifts, inflation, and evolving healthcare needs, which means it’s essential to stay informed about what’s coming.
In this blog, we’ll explore the likely and proposed changes to SSDI in 2025, including updates to income limits, benefits calculations, and policy reforms. Whether you’re applying for SSDI for the first time or currently receiving benefits, these changes could affect your financial stability and eligibility.
Key Areas of Change to Watch in 2025
Several key aspects of the SSDI program may see changes in 2025. While not all proposals will become law, understanding what’s being discussed can help you prepare for potential shifts in benefits and eligibility criteria. Below are some of the most anticipated changes.
1. Increase in Substantial Gainful Activity (SGA) Limits
The Substantial Gainful Activity (SGA) limit determines how much income you can earn while still qualifying for SSDI benefits. Each year, the SSA adjusts the SGA limits based on inflation and cost-of-living considerations. For 2024, the SGA limit for non-blind individuals is $1,470 per month, while the limit for blind individuals is $2,460 per month.
- Projected SGA Increase for 2025: Due to ongoing inflation, the SGA limits are expected to rise again in 2025. We anticipate that the SGA limit for non-blind individuals could increase to $1,530 per month, while the limit for blind individuals may rise to $2,550 per month.
- Impact on Workers Testing Their Ability to Work: This increase would allow SSDI recipients to earn more income while still receiving benefits, which could benefit those testing their ability to return to work without immediately losing their financial support.
Example:
A person receiving SSDI for a mental health condition may currently be able to work part-time and earn up to $1,470 per month. In 2025, they may be able to increase their hours slightly and earn up to $1,530 without risking their SSDI benefits.
2. Changes to the Trial Work Period (TWP)
The Trial Work Period (TWP) allows SSDI recipients to test their ability to work for nine months without losing their benefits. In 2024, the monthly income threshold for a TWP month is $1,050. After completing the nine months, the SSA reviews whether your earnings exceed the SGA limit and determines if your benefits should continue or stop.
- Projected TWP Increase for 2025: Similar to the SGA limit, the TWP threshold is expected to increase in 2025, allowing SSDI recipients to earn more during their trial work months. The new TWP threshold could rise to $1,100 or higher.
- Potential Policy Proposals: Some proposals suggest extending the Trial Work Period beyond nine months or allowing SSDI recipients more flexibility in how they use their trial work months, such as spreading them out over a longer period.
Example:
A person who works as a freelance writer may have earned $1,200 in a trial work month in 2024, triggering one of their nine TWP months. In 2025, they may be able to earn slightly more before triggering a TWP month, providing more flexibility in returning to work.
3. Cost-of-Living Adjustments (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. In 2024, SSDI recipients saw an 8.7% COLA increase—the largest in decades—due to high inflation rates.
- Projected COLA for 2025: While inflation has moderated somewhat, we can still expect a COLA increase in 2025. Early estimates suggest a potential COLA increase of around 5%, which would increase monthly SSDI payments for all beneficiaries.
- Impact on Monthly Benefits: This COLA increase will directly impact the amount SSDI recipients receive each month, providing a necessary adjustment to rising living costs.
Example:
A person receiving $2,000 per month in SSDI benefits in 2024 could see their payment increase to $2,100 or more in 2025, depending on the official COLA increase.
4. Potential Policy Reforms: Streamlining the SSDI Application Process
Several lawmakers and advocacy groups have proposed reforms to make the SSDI application process more efficient and less burdensome for applicants. These proposals aim to reduce the long wait times many applicants face and provide faster access to benefits for those with severe disabilities.
- Shorter Processing Times for Severe Disabilities: One proposal involves fast-tracking SSDI claims for individuals with conditions that are clearly disabling, such as certain terminal illnesses or severe disabilities listed in the SSA’s Blue Book.
- Simplified Application Process: There is also discussion of simplifying the SSDI application forms, particularly for older adults and veterans, to reduce the complexity and improve approval rates for those who clearly meet disability criteria.
Example:
A veteran with a severe disability like amyotrophic lateral sclerosis (ALS) may benefit from a fast-tracked application process, allowing them to receive SSDI benefits more quickly rather than waiting months for a decision.
5. Increased Awareness of Mental Health Disabilities
With growing recognition of the impact mental health conditions have on daily functioning, there is an increasing push to make it easier for individuals with mental health disabilities to qualify for SSDI. Conditions such as depression, anxiety, and post-traumatic stress disorder (PTSD) are already covered under the SSA’s Blue Book listings, but some proposals suggest expanding mental health criteria or providing more clear guidance for mental health-related claims.
- Expanded Mental Health Criteria: Proposed changes could involve making it easier to qualify for SSDI based on mental health conditions by providing clearer definitions and less subjective criteria for conditions like chronic depression and anxiety.
- Increased Emphasis on Medical Evidence for Mental Health: The SSA may also place more weight on medical evidence from psychologists and psychiatrists in determining mental health-related claims.
Example:
An applicant with PTSD may find it easier to qualify for SSDI if new guidelines reduce the burden of proof or provide clearer pathways to approval for mental health conditions.
How These Changes Could Impact New Applicants and Current Recipients
The proposed and anticipated changes for 2025 could have significant implications for both new SSDI applicants and those already receiving benefits. It’s important to understand how these shifts may affect your eligibility, income limits, and monthly benefits.
- New Applicants: Increased SGA and TWP limits will provide more flexibility for applicants who want to test their ability to work. Fast-tracked applications and streamlined processes could reduce wait times for individuals with severe disabilities.
- Current Recipients: A COLA increase will provide much-needed financial relief for current SSDI beneficiaries, while higher income limits will allow recipients to work part-time or test new job opportunities without immediately losing benefits.
Let Disability Law Group Help You Stay Informed About SSDI Changes
With many potential changes on the horizon for SSDI in 2025, it’s more important than ever to stay informed about how these updates may impact your benefits. At Disability Law Group, we are committed to helping you navigate the complexities of SSDI, whether you’re applying for the first time or managing ongoing benefits.
If you have questions about how these changes could affect your SSDI claim or need assistance preparing for new policies, contact us today for a free consultation. We’re here to guide you through every step of the process and ensure you get the benefits you deserve.
