The Future of SSDI: What Changes Are Coming?

How Will Disability Change in the Coming Years?

Social Security Disability Insurance (SSDI) is a vital lifeline for millions of Americans unable to work due to disability. As we move into 2025, several changes and proposals are on the horizon that could impact current and future beneficiaries. So what do we know about the future of SSDI, and how can you prepare?

Cost-of-Living Adjustment (COLA) Increase

Starting in January 2025, SSDI recipients will see a 2.5% increase in their monthly benefits due to the annual Cost-of-Living Adjustment (COLA).

So for example, if you’re currently receiving $1,000 per month, your benefit will increase to $1,025.

This adjustment happens every year in order to help beneficiaries keep up with inflation and rising living costs.

Changes to Income Limits and Tax Caps

In 2025, the Social Security tax limit—the maximum amount of income subject to Social Security taxes—will rise to $176,100, up from $168,600 in 2024.

This means higher earners will contribute more to the system.

However, tax limits can change based on congressional approval. Future tax cuts may impact whether these changes stay in effect.

Financial Solvency Concerns

The SSDI program faces ongoing financial challenges.

Some research shows  that by 2035, we may end up depleting the combined retirement and disability trust fund. This could lead to a 17% reduction in benefits if no corrective actions are taken.

But lawmakers have been looking to reform the disability program for a long time, and there’s a lot of proposals that could make a big difference in keeping the program afloat.

Policy Proposals and Reforms

For years, lawmakers have wanted to address SSDI’s financial stability. After all, it’s a relatively popular program that is meant to pay for itself.

Proposals to fix some of its financial problems include:

Early Retirement Disability Benefit

One proposal suggests introducing a benefit for people aged 58 and older who aren’t healthy enough to work full-time but don’t meet the stringent criteria for SSDI. This could help prevent financial hardship for people in poor health while perhaps limiting them from receiving full disability benefits if they aren’t needed.

Modernizing the Disability Insurance System

For years, people inside and outside the SSA have wanted to modernize the system. This could include updating the computer technologies and eligibility forms in order to make the application process easier and faster for everyone.

Some people also believe the system should refocus its efforts. Rather than giving so much in financial benefits, the SSDI program could help people with disabilities to remain employed.

This could not only save the system money, but might give people with disabilities more economic security moving into the future.

Adjusting Retirement Age

Some proposals advocate for gradually increasing the full retirement age from 67 to 69. This would affect when individuals become eligible for certain benefits.

While this change might require SSDI to pay out more in benefits for longer, it ultimately could save money for Social Security in general and keep programs like SSDI solvent.

What This Means for You

For anyone who needs disability benefits, it’s important to stay informed about the future of SSDI.

Even though the information can feel a little dense, small changes might make a big difference in your life. It can directly impact your financial planning and what support you might need.

Fortunately, you don’t have to keep up with all of this on your own. As a dedicated Memphis SSDI lawyer, I make it my job to know the ins and outs of this program and how it could affect you. Our attorneys stay on top of all the latest news so we can help you navigate the system when you need it.

A Lawyer for Your Changing SSDI Needs

As the future of SSDI changes, we’re committed to helping you understand how it all might affect you. But more importantly, we’ve learned these laws inside and out to fully prepare as we assist with your claims or appeals.

The SSDI process is extremely complicated, and it can make all the difference to have an attorney on your side.

A lot of people assume having our help will cost too much money. But actually, that’s not true at all. We don’t get paid anything unless and until we win your case. And even then, it’s only a small fraction of your past-due benefits. You keep every penny moving forward.

If you have questions or need guidance on your SSDI benefits, contact us today for a free consultation. We’ll use our knowledge of the law to fight for the benefits you need and help you build a better financial future.