Big changes are coming to Social Security in January 2025, especially for individuals who want to work while receiving Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI).
These updates introduce higher income limits, enhanced work incentives, and new ways to ease the transition into the workforce while protecting benefits.
If you’re receiving Social Security and considering re-entering the job market, here’s everything you need to know about these new rules.
Understanding SSDI and SSI
Social Security provides two key programs for individuals with disabilities:
- SSDI: This program supports those who have worked and paid into Social Security but can no longer work due to a disability.
- SSI: This need-based program offers financial assistance to disabled individuals with limited income and resources, regardless of work history.
Each program has its own set of rules and thresholds for working while receiving benefits. The 2025 updates aim to make it easier for recipients of both programs to explore employment opportunities without fear of immediately losing their benefits.
Key Changes for 2025
Trial Work Period (TWP) for SSDI
The Trial Work Period (TWP) allows SSDI recipients to test their ability to work without losing their benefits. In 2025, the monthly TWP threshold will rise to $1,050 or more.
- How TWP Works: You can earn any amount during your nine TWP months while still receiving full SSDI benefits. Once your trial ends, your earnings will be evaluated against the Substantial Gainful Activity (SGA) threshold.
- SGA Threshold for 2025: $1,460/month for non-blind individuals and $2,460/month for blind individuals. Earning above the SGA threshold after the TWP may result in the loss of SSDI benefits.
SSI Income and Resource Limits
SSI recipients face stricter income and resource limitations because the program is based on financial need.
- Income Limits for 2025: The income limit is expected to remain around $1,000/month for individuals and $1,500/month for couples.
- Earned Income Exclusions: The first $65 of earned income per month, plus half of any additional earnings, won’t count against your SSI benefit calculation.
- Impairment-Related Work Expenses (IRWE): Costs for disability-related work expenses, like specialized equipment or transportation, can also be deducted from your income.
SSI recipients can also protect some resources, like their home or one vehicle, from counting against eligibility.
Enhanced Work Incentives
The 2025 rules include stronger work incentives to encourage financial independence:
- Ticket to Work Program: Provides free job training, employment counseling, and vocational rehabilitation services for SSDI and SSI recipients. It helps participants transition into the workforce while protecting their benefits.
- Plan to Achieve Self-Support (PASS): SSI recipients can set aside income and resources for specific work goals, such as attending school or starting a business.
- Student Earned Income Exclusion (SEIE): Students under 22 who receive SSI can exclude a portion of their earnings from benefit calculations.
Cost of Living Adjustments (COLA)
Social Security benefits, including SSDI and SSI, will continue to adjust for inflation through annual Cost of Living Adjustments (COLA).
For 2024, the COLA was 3.2%, and a similar increase is expected in 2025 to help offset rising living expenses.
How These Changes Help
The updated rules make it easier to test your ability to work while maintaining financial stability. For example:
- Increased Earnings Thresholds: The higher TWP and SGA thresholds allow SSDI recipients to earn more without losing benefits.
- Work Incentives: Programs like Ticket to Work and PASS provide vital support for transitioning into the workforce.
- Flexible SSI Rules: Earned income exclusions and IRWE deductions give SSI recipients more room to earn and save.
Example: Samantha’s Story
Samantha, a 38-year-old SSDI recipient, decided to return to work as a part-time office assistant in 2025. Through the Trial Work Period, she earned $1,200 per month without affecting her SSDI benefits.
After completing her TWP, Samantha’s earnings remained below the SGA threshold, allowing her to continue receiving SSDI while working part-time.
Samantha also enrolled in the Ticket to Work Program, which provided job training and support. Over time, she transitioned into full-time work and became financially independent, while the program protected her benefits during her journey.
Resources for Assistance
Navigating Social Security’s updated rules can be complex, but you’re not alone. Here’s where to turn for help:
- Social Security Administration (SSA): The SSA’s website provides the latest updates and detailed guidance.
- Ticket to Work Program: Visit the Ticket to Work website for free job training and support services.
- Local SSA Offices: For personalized assistance, contact your nearest SSA office.
- Nonprofit Advocacy Groups: Organizations like the National Disability Rights Network (NDRN) offer free resources and advice.
Social Security’s new rules for 2025 create opportunities for recipients of SSDI and SSI to work without immediately losing benefits.
Whether it’s testing the waters with the Trial Work Period, benefiting from income exclusions, or using programs like Ticket to Work, these updates are designed to support your transition to financial independence.
Plan carefully, explore your options, and take full advantage of these resources to build a secure future while maintaining your benefits.
