As we move into 2024, there are important updates to Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI) that will affect many Americans.
These changes are based on the yearly Cost-of-Living Adjustment (COLA) and other factors. They bring both new opportunities and challenges for those who receive these benefits.
Here’s a closer look at what these changes mean for recipients and whether they are positive or negative.
1. Cost-of-Living Adjustment (COLA)
The most important change for 2024 is a 3.2% boost in benefits due to the cost-of-living adjustment (COLA). This increase is meant to keep pace with inflation, based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
For Supplemental Security Income (SSI), the highest monthly payment for an individual will go up to $943, from $914 in 2023. Couples will see the maximum payment rise to $1,415 per month.
For Social Security Disability Insurance (SSDI), the average monthly benefit will increase to $1,537, and the maximum benefit will rise to $3,822 per month.
2. Substantial Gainful Activity (SGA) Limit Increase
The SGA limit, which affects whether you qualify for SSDI based on how much you earn, has gone up.
For people who are not blind, the limit is now $1,550 per month, an increase from $1,470 in 2023. For people who are blind, the limit has risen to $2,590 per month, up from $2,460 last year.
This means you can earn more money while still receiving your benefits, giving you more freedom if you want to work part-time.
3. SSI Income and Asset Limits
While the income and asset limits for SSI are still the same ($2,000 for individuals and $3,000 for couples), the 3.2% Cost-of-Living Adjustment (COLA) does slightly raise the allowable earnings for those on SSI. However, if you earn more than the new federal payment levels, your benefits will be reduced.
Is This Good or Bad?
Pros:
- Increased Benefits: The 3.2% COLA gives a small boost to SSI and SSDI payments, which helps counteract inflation.
- Higher Earnings Thresholds: SSDI recipients can now earn more without losing benefits, which encourages more people to work.
Cons:
- Limited Asset Increases: SSI asset limits haven’t changed, so saving money while receiving benefits can still be difficult.
- Marginal Increase: The 3.2% increase might not be enough to cover higher living costs, especially in areas with high inflation.
Summary Table of 2024 Changes
| Change | 2023 | 2024 |
|---|---|---|
| SSI Maximum Benefit (Individual) | $914 per month | $943 per month |
| SSI Maximum Benefit (Couple) | $1,371 per month | $1,415 per month |
| SSDI Average Benefit | $1,483 per month | $1,537 per month |
| SSDI Maximum Benefit | $3,627 per month | $3,822 per month |
| SGA Limit (Non-Blind) | $1,470 per month | $1,550 per month |
| SGA Limit (Blind) | $2,460 per month | $2,590 per month |
Conclusion
The 2024 updates to SSI and SSDI include both good and less favorable changes. On the positive side, benefits and earning limits are increasing, which is helpful. However, the asset limits remain the same, and the cost-of-living adjustment (COLA) is quite small. This might not be sufficient for everyone. It’s important for each person to review these changes based on their own financial situation.
What is the Cost-of-Living Adjustment (COLA) for 2024?
In 2024, there is a 3.2% increase in benefits for both SSI and SSDI due to the COLA. This adjustment is designed to help benefits keep pace with inflation.
How much will SSI payments increase in 2024?
For SSI, the maximum monthly payment will increase to $943 for individuals and $1,415 for couples, up from $914 and $1,371, respectively, in 2023.
What are the new Substantial Gainful Activity (SGA) limits for 2024?
The SGA limit for non-blind individuals has increased to $1,550 per month, while for blind individuals, it has risen to $2,590 per month.
Have SSI asset limits changed for 2024?
No, the asset limits for SSI remain at $2,000 for individuals and $3,000 for couples, despite the 3.2% COLA adjustment.