As we near 2025, several changes to Social Security benefits will affect people in California. Knowing about these updates helps you plan and manage your Social Security benefits well.
Cost-of-Living Adjustment (COLA)
Benefits will increase by 2.5% in 2025 due to the Cost-of-Living Adjustment (COLA). This change aims to help people keep up with rising prices. For the average SSDI recipient, this means more monthly money, giving extra financial help.
Substantial Gainful Activity (SGA) limits
The SGA ceiling for those getting Social Security Disability Insurance (SSDI) will also rise. SSDI recipients can earn more in 2025 while keeping benefits:
- Non-blind limit: $1,620/month
- Blind limit: $2,700/month
These adjustments allow beneficiaries to earn more without losing their benefits.
Changes to the Trial Work Period (TWP)
SSDI recipients can test working for 9 months through the Trial Work Period while keeping full benefits. In 2025, the monthly income limit for a TWP month will go up to $1,100. This change allows people to earn more during their trial work months, giving them more freedom to test their workability.
Retirement earnings test exempt amounts
Social Security recipients under full retirement age can earn up to $23,400 in 2025 before their benefits decrease, while those reaching full retirement age that year can earn up to $62,160 before any reduction in benefits.
Consider legal help
These changes will help you better manage your Social Security benefits and make informed choices. Consider talking to a lawyer if you have specific questions about how these changes might affect you.
