In December 2024, Social Security will implement a 2.5% cost-of-living adjustment (COLA) for 2025. This annual increase will impact various benefit limits and thresholds for Social Security beneficiaries. For individuals and representatives navigating Social Security benefits, here’s a breakdown of what these updates mean.
Key Changes for 2025
- Authorized Representative Fee Changes Starting in December 2024, the cap on the “user fee”—the assessment charged when Social Security pays authorized representatives directly from a claimant’s past-due benefits—will rise to $120, up from $117. This fee, which is the lesser of 6.3% of the representative’s authorized fee or the $120 cap, impacts those advocating on behalf of claimants.
- Substantial Gainful Activity (SGA) Threshold For beneficiaries navigating work and disability benefits, the non-blind SGA threshold will rise to $1,620 per month in 2025. This threshold is critical as it determines whether a person is considered “gainfully employed” and, consequently, eligible for disability benefits. Staying under this amount remains essential for beneficiaries who rely on these benefits and wish to avoid overpayments or disruption in their disability status.
- Trial Work Period (TWP) Earnings Limit The monthly earnings that trigger a Trial Work Period will also increase in 2025, moving to $1,160. During a TWP, beneficiaries receiving disability benefits are allowed to test their ability to work for up to nine months without risking benefit termination. Understanding this change can help beneficiaries make informed decisions about their employment plans in the coming year.
- Supplemental Security Income (SSI) Maximum Monthly Benefits For individuals relying on Supplemental Security Income, the maximum federal monthly benefit will rise to $967 for individuals and $1,450 for couples. This amount is greater for residents of California who receive a state supplement. This increase aims to adjust for inflation, providing a small but vital boost to SSI recipients who often depend on every dollar to cover basic needs.
- Average Monthly Social Security Benefit for Disabled Workers SSA projects that the average monthly Social Security benefit for all disabled workers will increase to $1,580 in 2025. This figure provides a benchmark for new and current beneficiaries, highlighting the average support available through Social Security’s disability benefits. For your specific benefit amount, we recommend creating an online My Social Security account or calling Social Security.
Simplified COLA Notices and Digital Access for Beneficiaries In an effort to streamline communication, Social Security has simplified the COLA notices to a one-page format, using clear and personalized language. These notices are expected to be accessible through beneficiaries’ “my Social Security” accounts in December 2024. This approach aims to reduce confusion and improve accessibility, allowing beneficiaries to review changes easily and manage their accounts online.