SSD Changes for 2025
Most Social Security disability (SSD) recipients know that there is typically a cost of living adjustment (COLA) at the beginning of each year. While the COLA is usually modest, it does increase monthly SSD benefits. For 2025, the increase in SSD benefits and Social Security retirement benefits is 2.5%.
What many SSD recipients don’t realize is that other changes take place at the same time. Not every change impacts all recipients. Here’s what you need to know about the coming changes and who will be affected.
Three Types of Changes for SSD Recipients
In addition to the COLA increase, three changes are taking place for 2025:
- A change in Medicare premiums
- An increase in the maximum SSD benefit
- An increase in the substantial gainful activity (SGA) threshold
Medicare Premiums are Increasing
The monthly premium for Medicare Part B increases to $185 in 2025. That’s a small change–just $10.30 more than the 2024 premium. Still, it will cut into this year’s relatively small increase in monthly benefits. For example, an SSD recipient getting $1,000/month in benefits in 2024 would see a $25 increase in benefits, but then lose $10.30 of that increase to the higher Medicare Part B premium.
The Maximum SSD Benefit is Increasing
SSD benefits are based on the benefit the recipient would have gotten in retirement benefits if they had worked to full retirement age. That amount is determined based on the worker’s earnings history. Higher earners pay more toward Social Security during their working years, and can expect to receive higher monthly benefits when they retire. However, there is a monthly maximum benefit for those who take Social Security at full retirement age, and different caps for those who take benefits early or late.
In 2025, the maximum benefit increases to $4,108/month for workers who collect Social Security at full retirement age, and for those receiving SSD. The caps have also changed for Social Security retirement recipients who took benefits at age 62 ($2,831/month) or waited until age 70 ($5,108/month). However, these changes will only impact high earners who are receiving the maximum possible benefits.
Earning Caps are Increasing
To qualify for SSD, an applicant must show that their medical condition prevents them from engaging in substantial gainful activity (SGA). That means anyone who works and earns more than the SGA cutoff is automatically considered not disabled.
In 2024, that cut-off was $1,550/month. In 2025, that number increases to $1,620/month. The SGA cut-off for blind SSD applicants/recipients is increasing from $2,590/month to $2,700/month.
Once a person is receiving SSD benefits, the Social Security Administration (SSA) offers a trial work program to help people determine whether they are able to return to work. The trial work program isn’t something that an SSD recipient signs up for–it is automatically triggered by earnings. If the recipient earns a certain amount in any month, that month is counted toward a trial work period. In 2024, that amount was $1,110. For 2025, it will be $1,160.
A recipient who earns above that threshold in any nine of 60 consecutive months will be considered to have successfully completed a trial work period and will move into an extended period of eligibility designed to transition the recipient off of SSD.
Changes Impacting Future SSD or Retirement Recipients
The changes above will impact some people who are currently receiving SSD or Social Security retirement benefits, or who are in the process of applying for benefits or moving through the appeals process. But some changes impact those who are still working and paying FICA taxes.
Social Security retirement benefits, SSD and Medicare benefits are funded by payroll deductions known as FICA deductions–Federal Insurance Contributions Act. An employee pays 6.2% of taxable income toward Social Security and 1.45% toward Medicare, for a total of 7.65% of taxable earnings. Your employer matches those payments. If you are self-employed, you are responsible for both the employee and employer portions, totalling 15.3%. However, FICA taxes do not apply to all of your earnings from work.
The amount of annual earnings subject to FICA taxes is capped, though that cap has been increasing steadily. In 2000, workers paid FICA taxes on earnings up to $76,200/year. In 2010, the cap was $106,800. By 2020, it had climbed to $137,700. In 2025, U.S. workers will pay FICA taxes on earnings up to $176,100. In other words, the 2025 cap is 230% of the 2000 cap. A number of proposals have been under discussion recently that would raise this cap even further, so we can’t yet predict what type of increases may be implemented in the next few years.
Securing SSD Benefits in 2025
The amount of SSD benefits a recipient gets vary depending on their earnings history, and are increased slightly in most calendar years. It’s good to be aware of those changes so you can plan accordingly–especially when the impact is an increased cost such as a higher Medicare premium. But, the adjustments happen automatically, so don’t require much of your attention.
Unfortunately, the same is not true for the process of successfully applying for SSD benefits. Most applicants have to provide extensive information with their applications for SSD benefits, and most SSD applications are denied at first.
If you haven’t yet applied for SSD benefits, it’s in your best interest to talk to an experienced disability benefits advocate before you get started. Understanding exactly what types of evidence the SSA is looking for and how to present that information can make all the difference. If you’ve already applied and been denied, Disability Help Group can assist with the next steps, too. Our advocates have extensive experience with the application and reconsideration processes, as well as hearings before the administrative law judge (ALJ).
To learn more about how we can help–no matter where you are in the process–call us today at 800-800-3332 or fill out our contact form here.
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