d
Follow us
  >  Public Law   >  10 Social Security Changes To Watch For In 2025
2025 SSDI Benefits Changes

10 Social Security Changes To Watch For In 2025

Social Security has been around for nearly nine decades, and year after year we see a steady flow of changes that affect the 72.5 million of Americans collecting these benefits. Being aware of what changes are coming to Social Security in the New Year can help you start planning and making adjustments to your benefits for 2025.

 

Whether you are applying for Social Security Disability Insurance (SSDI), or you are currently receiving benefits, we outline ten prospective changes for 2025 that could likely affect your financial wellbeing.

 

Old & New SSDI Policies for 2025

  1. COLA Increase

The Social Security Administration (SSA) recently announced these recipients will see a 2.5% increase cost-of-living adjustment (COLA) increase to their payments beginning on December 31, 2024. These alterations help beneficiaries with living costs and overall inflation.

 

  1. Medicare Increases

The cost of Medicare Part B is also increasing in the new year, increasing the standard monthly premium by $10. Seniors enrolled in Medicare while on Social Security will be left with a smaller increase to their monthly checks, since Part B premiums are paid out of Social Security automatically.

 

  1. Higher Earning Limits

 You’re allowed to earn money from a job, which is why It’s common to work while collecting Social Security benefits. In 2025 the earnings-test limits are increasing from $22,320 to $23,400. From there, $1 in Social Security benefits will be withheld per $2 of earnings.

 

  1. Increase in Social Security Taxes

 Workers are taxed on their wages, as a portion of each person’s paycheck, noted as FICA, goes straight to Social Security.  Without Social Security taxes, the program wouldn’t exist, so each year a new wage cap determines how much income is taxed. The wage cap will rise from $168,600 to $176,100 in 2025. Higher earners will pay Social Security tax on an extra $7,500. So if that’s a category you fall into, gear up for that tax hit — and try to find ways to offset it, such as maxing out contributions to an IRA or 401(k) plan to shield more of your income from taxes.

 

  1. Maximum Social Security Benefit Increases

In 2025, the maximum Social Security benefit for a worker retiring at full retirement age is going up from $3,822 in 2024 to $4,018. This maximum applies to those retiring at the full retirement age, which is 67 for anyone born after 1960.

 

  1. Disability Benefits and Income Thresholds Increased

For those who can no longer work due to a disability, the SSA provides Social Security Disability Insurance (SSDI). In 2025 recipients will get an increase to $1,580. Disabled workers with a spouse and one or more children can expect an average of $2,826 in 2025. Blind workers have a cap of $2,700 per month in 2025.

 

  1. Harder to Qualify for Benefits

Social Security benefits are earned by paying taxes on enough income throughout your career. To get benefits as a senior, you need 40 lifetime work credits, and you can accumulate four credits max per year. The value of a work credit is rising in 2025 from $1,730 to $1,810. If you work very part time but need your four credits to get Social Security, it’s likely you’ll need to increase your hours. The number of credits needed for SSDI depends on the age when the recipient becomes disabled.

 

  1. Changes to Trial Work Period

 The Trial Work Period (TWP) lets SSDI recipients test their ability to work for nine months without losing their benefits. After completing the nine months, the SSA reviews whether your earnings exceed the SGA limit and determines if your benefits should continue or stop. In 2025 TWP is expected to rise to $1,100 or higher, allowing SSDI receivers to earn more during their trial work months.

 

  1. SSDI Application Process

Several proposed reforms could make the SSDI process more streamlined, shortening long wait times disabled applicants experience by accelerating claims for individuals with conditions that are clearly disabling, such as certain terminal illnesses or severe disabilities listed in the SSA’s Blue Book.  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, could be another positive change.

 

  1. Amplified Mental Health Disability Awareness

It’s more important than ever to stay cognizant on how Social Security changes in 2025 could impact your benefits. Lowery Law Group is committed to helping you through these complexities of these potential alterations. We stand ready to help secure the benefits you need and deserve. Contact us at info@lowerylegal.com or call (843) 991-0733. There is no fee for a free consultation regarding your claim.