SSDI & SSI Are Changing in 2024 - A Breakdown Of New Benefit Amounts

Prices keep rising and rising. As a result, many US citizens (especially those with low incomes) are worried about how they’ll handle it. Fortunately, Social Security annually adjusts the benefit amounts to protect beneficiaries from increasing prices. 

This is referred to as the cost-of-living adjustment (COLA). It provides a hedge against inflation and ensures that SSI and SSDI benefits can still cover the costs of daily life. 

So yes, SSDI and SSI are changing in 2024, meaning you should learn about the new benefits you can expect the following year. 

How Does Cost-of-Living Adjustment Work?

The COLA program tracks the shifts in consumer prices every year and applies adjustments to SSI and SSDI benefit amounts. Moreover, the Social Security Administration also accounts for the trends in wage growth that may affect the eligibility for recipients of both benefit programs. 

So, how SSDI and SSI are changing in 2024?

Regardless of whether you are unable to work due to disability or are earning less than the federal minimum wage, you’ll receive an increase of 3.2% in your monthly benefits next year. 

This is substantial enough (or should be) to help keep you afloat during these unprecedented times. 

Changes in SSDI Benefit Amounts

At the time of writing, more than 7.4 million workers are receiving SSDI, accounting for about 11% of all Social Security beneficiaries in the US. SSDI benefits are similar to retirement benefits due to the fact they are paid out of the payroll taxes that go to dedicated Social Security trust funds. Furthermore, benefit amounts and eligibility are directly related to the worker’s earning history. 

Starting January 2024, the COLA will raise the average monthly SSDI benefit amounts for disabled individuals by $48. For 2023, the average monthly amount is $1,489, so if you’re an SSDI recipient, you’ll start receiving $1,537. 

In addition, over a million family members are receiving these benefits based on the earnings of their disabled spouse or a parent. These recipients often have a spouse and children and are at a major financial disadvantage when compared to single individuals. Because of this, the Social Security Administration will increase their benefits from $2,636 to $2,720. 

New SSDI Income Limits

SSDI benefits are directly related to a person’s inability to work, which is why there is a strict income ceiling for all SSDI recipients. This means that if an individual exceeds the gap of what is considered “substantial gainful activity”, they’ll lose their eligibility.

This limit is adjusted annually according to the National Average Wage Index, which is the Social Security Administration’s measurement of historical US wage trends. 

Starting in 2024, SSDI recipients will be allowed to earn up to $1,550 monthly from a job without putting their benefits at risk (up from $1,470 in 2023). 

The cap is higher for blind recipients, as these individuals will be able to make $2,590 per month, representing a $130 increase. 

A similar thing applies to the work incentives offered by the Social Security Administration, which motivate SSDI recipients to find work. One of the most common work incentives is the trial work period. 

With it, beneficiaries can test their working ability for at least nine months without hurting their eligibility. During this period, beneficiaries will receive full benefits, regardless of the amount of earnings. 

Earning a particular amount of money will count towards your trial work period quota. In 2023, this amount was $1,050 and will increase to $1,110 in 2024. 

How Will SSI Benefits Change?

Remember what we said at the start? Both SSDI and SSI benefits are changing in 2024.

SSI is different from SSDI benefits since it’s funded by US tax revenue, not payroll taxes. This safety net program delivers monthly benefits to almost 7.5 million people. Most of these individuals are older than 65, have disabling conditions, or have limited financial resources or low income.

The maximum federal monthly SSI payment will increase from $914 to $943. For married couples (if they’re both eligible for the program), monthly payments will increase from $1,371 to $1,145.

The good news is that since January 1 is a federal holiday, you’ll receive your benefits on December 29, 2023. 

New SSI Income Limits

SSI applicants adhere to strict substantial gainful activity limits in the filing stage of their claim. This means that if their income exceeds the claim threshold while filing, they will most likely get denied.

This cap no longer applies after the applicant starts receiving benefits.

However, there is an income limit for SSI recipients. If they receive money from other sources such as work, family members, SSDI benefits, or investments, a portion of this income will be deducted from their payment.

This is considered countable income. If it exceeds the standards set forth by the Social Security Administration, SSI applicants won’t receive any benefits that month. In 2024, the federal payment standard will be $943 for single individuals and $1,415 for couples. 

The cost-of-living adjustment will also affect younger individuals receiving SSI benefits due to disabilities or blindness. Those who attend a college, university, or secondary school, as well as those receiving vocational training, can earn money up to a certain limit without the income counting against their monthly benefits. This is referred to as the “student-earned income inclusion” and will go up to $2,290 per month ($2,220 in 2023), and the annual maximum will increase from $8,950 to $9,230. 

COLA to the Rescue

Even though the increased amounts don’t seem that big of a deal, they do matter. Escalating prices of goods and services can have a huge impact on your government benefits, especially in times like these when inflation is in full swing. 

COLA is a godsend because it will help you preserve your purchasing power and ensure you can maintain the same standard of living as you did in the past. 

And who knows? You may even end up with some extra cash at the end of each month.