Social Security benefits are most commonly associated with retirees. But approximately 9 million working-age Americans receive Social Security Disability Insurance, or SSDI.In fact, the Social Security Administration estimates that a worker born in 2000 has about a 1 in 4 chance of becoming disabled before reaching their full retirement age of 67.
SSDI recipients receive the same cost-of-living adjustment, or COLA, that other beneficiaries receive. That means in 2023, anyone who receives Social Security disability benefits will see their monthly check increase by 8.7%.
Here's what the upcoming COLA means for SSDI beneficiaries.
Image source: Getty Images.
What's the maximum SSDI benefit in 2023?
In 2023, the maximum Social Security disability benefit is $3,627 a month -- $282 more than in 2022. The maximum SSDI benefit in any given year is the same as the maximum Social Security benefit at full retirement age, which is 67 if you were born after 1959. That's because benefits for those who qualify under Social Security's strict rules for disability are calculated as if the worker already reached full retirement age.
But the average SSDI benefit is significantly lower. Even when you factor in 2023's unusually high COLA, the average monthly disability benefit will be just $1,483. That's $344 lower than 2023's average Social Security retirement benefit of $1,827 a month.
Although Social Security treats retired workers as though they've already reached retirement age, disability benefits tend to be lower because Social Security uses your average indexed monthly earnings to calculate both types of benefits. Your highest-earning years tend to come later in your career. Workers with disabilities tend to miss out on their most lucrative years of work, so average SSDI benefits are lower.
What if disability benefits aren't enough?
Whether you receive SSDI or retirement benefits, surviving on Social Security alone can be a challenge. If you're struggling with expenses, use benefits.gov to see if you could be eligible for other forms of assistance. The online form takes 10 to 30 minutes to complete. After you've been eligible for SSDI benefits for 24 months, you'll also qualify for Medicare, which should provide some relief.
If you can work part-time, you can do so without jeopardizing your benefits, but you can't engage in what Social Security calls "substantial gainful activity." In other words, you'll face strict income limits. In 2023, you can earn up to $1,470 a month if you're not blind or $2,460 a month if you're blind. Earnings above these amounts will make you ineligible for disability benefits.
However, there is an exception: Social Security allows disability recipients a nine-month trial work period, during which they can test their ability to work without affecting benefits. During these nine months, you can receive your full SSDI payment, no matter how much you earn. You can use your nine months consecutively or spread them out over a 60-month period. Social Security will count any month in which you earn at least $1,050 (or work more than 80 hours if you're self-employed, regardless of earnings) as one of your trial work period months in 2023.
Losing benefits is a real concern, given that about two-thirds of initial SSDI applications are denied. Many workers with disabilities experience ups and downs in their conditions. They may be able to work temporarily or on a limited basis, but their disability may preclude them from holding a permanent, full-time job.
The bottom line: If you're on SSDI and find that your 2023 benefit isn't enough, you do have options for earning money if you're able to perform some work. But it's essential that you follow Social Security's complex rules. Otherwise, you could risk your disability benefits.
FAQs
How much will my disability check go up in 2023? ›
Social Security benefits and Supplemental Security Income (SSI) payments will increase by 8.7% in 2023. This is the annual cost-of-living adjustment (COLA) required by law.
What is the max Social Security disability benefit? ›Social Security Disability Insurance (SSDI) – The maximum payment is $3,627 a month. The maximum family benefit for SSDI is about 150% to 180% of the disabled worker's benefit. The maximum payment at full retirement age is $3,627 monthly. However, if you retire at age 62, your benefit is $2,572.
Will disability benefits increase in 2023? ›Social Security and Supplemental Security Income (SSI) benefits for approximately 70 million Americans will increase 8.7 percent in 2023.
How much can you make on Social Security disability in 2023? ›resources-supports.htm. During the trial work period, there are no limits on your earnings. During the 36-month extended period of eligibility, you usually can make no more than $1,470 ($2,460 if you are blind) a month in 2023 or your benefits will stop. These amounts are known as Substantial Gainful Activity (SGA).
How much will people on disability get next year? ›SSDI benefit amounts
According to the Social Security Administration (SSA), the 2023 COLA will increase the average monthly SSDI benefit for a disabled worker by $119, from $1,364 to $1,483. About 1.25 million family members also receive SSDI on the earnings record of a disabled spouse, former spouse or parent.
The most impactful change in 2023 is the 8.7% cost of living adjustment, or COLA, which takes effect this month. For instance, if you receive $2,000 a month from Social Security, the monthly payout will rise to $2,174 per month.
What pays more Social Security Disability or Social Security? ›If you're comparing these two types of Social Security benefits, then you should know that typically the SSDI benefits pay more. In fact, disability in this scenario is, on average, more than double the benefits you would receive from SSI benefits.
Will people on disability get an increase next year? ›Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) benefits will increase by 5.9% for almost 70 million Americans. These increases to Social Security disability benefits will begin at the start of December 2021 and will also be made payable in January 2022.
How do I increase my Social Security Disability payments? ›You can increase Social Security Disability payments by working at least 35 years before retiring, understanding the benefits of working past retirement age, and avoiding Social Security's tax consequences. If you are married, married applicants can maximize their disability payments by claiming their spousal benefits.
What happens to disability when you turn 65? ›your disability benefits automatically convert to retirement benefits, but the amount remains the same. If you also receive a reduced widow(er)'s benefit, be sure to contact Social Security when you reach full retirement age, so that we can make any necessary adjustment in your benefits.
How do I get the $16728 Social Security bonus? ›
Who is eligible for Social Security bonus? For every year that you delay claiming past full retirement age, your monthly benefits will get an 8% “bonus.” That amounts to a whopping 24% if you wait to file until age 70.
Does Social Security disability ever increase? ›Last Updated: October 13, 2022
Approximately 70 million Americans will see a 8.7% increase in their Social Security benefits and Supplemental Security Income (SSI) payments in 2023. On average, Social Security benefits will increase by more than $140 per month starting in January.
No, Social Security Disability Insurance (SSDI) payments do not change if your condition becomes more severe or limiting. Here's why: SSDI benefits are based on your earnings history, not the level of your disability.
Is Social Security going up for disability? ›With COLAs, Social Security and Supplemental Security Income (SSI) benefits keep pace with inflation. The latest COLA is 8.7 percent for Social Security benefits and SSI payments. Social Security benefits will increase by 8.7 percent beginning with the December 2022 benefits, which are payable in January 2023.
What is the COLA for SSDI for 2023? ›SSDI recipients receive the same cost-of-living adjustment, or COLA, that other beneficiaries receive. That means in 2023, anyone who receives Social Security disability benefits will see their monthly check increase by 8.7%.
Will Social Security get a $200 raise in 2023? ›As GOBankingRates previously reported, the Social Security Expansion Act was first introduced on June 9 by Sanders and U.S. Rep. Peter DeFazio (D-Ore.). Under terms of the bill, anyone who is a current Social Security recipient, or who will turn 62 in 2023, would receive an extra $200 in each monthly check.
What is considered to be a permanent disability? ›Permanent disability (PD) is any lasting disability from your work injury or illness that affects your ability to earn a living. If your injury or illness results in PD you are entitled to PD benefits, even if you are able to go back to work.
What is the most approved disability? ›What Is the Most Approved Disability? Arthritis and other musculoskeletal system disabilities make up the most commonly approved conditions for social security disability benefits. This is because arthritis is so common. In the United States, over 58 million people suffer from arthritis.
Does Social Security Disability last for life? ›For those who suffer from severe and permanent disabilities, there is no “expiration date” set on your Social Security Disability payments. As long as you remain disabled, you will continue to receive your disability payments until you reach retirement age.
What is the best state to live in on Social Security Disability? ›Iowa tops the list for best states to live on just a Social Security check thanks to a number of factors.
What if disability is not enough money? ›
When your disability check isn't enough to live on, you may have additional options at your disposal. For example, you may qualify for extra help in specific areas such as health care costs, food, and housing. Different federal, state, and local programs may be available.
Do you have to file taxes on disability income? ›Your benefits may be taxable if the total of (1) one-half of your benefits, plus (2) all of your other income, including tax-exempt interest, is greater than the base amount for your filing status.
What are the cons of being on disability? ›- Disability insurance can be expensive. Coverage costs more the older you get or the more dangerous your job is. ...
- Policies can come with exclusions that don't cover pre-existing conditions. ...
- Waiting period. ...
- If you never experience a disability, you won't receive benefits.
Medical Improvement Possible
If your case is classified as MIP, your CDRs will be scheduled every three years. For most cases, you'll stop being scheduled for CDRs after age 52, with some exceptions for cancers in remission or bone fractures.
- If, after completing a 9-month Trial Work Period (TWP), you work at a level we consider substantial. ...
- If we decide that your medical condition has improved and you no longer have a disability.
For every year that you delay claiming past full retirement age, your monthly benefits will get an 8% “bonus.” That amounts to a whopping 24% if you wait to file until age 70.
Will a bonus affect my disability benefits? ›Although well-intentioned, the additional income may affect individuals receiving Title II benefits, such as Social Security Disability Insurance (SSDI), Childhood Disability Benefits (CDB), or Disabled Widow's or Widower's Benefits.
What is the average Social Security monthly check? ›| Type of beneficiary | Beneficiaries | Average monthly benefit (dollars) |
|---|---|---|
| Number (thousands) | ||
| Total | 66,133 | 1,691.53 |
| Old-Age and Survivors Insurance | 57,334 | 1,745.35 |
| Retirement benefits | 51,491 | 1,779.16 |
The first Social Security checks and bank deposits featuring the largest cost-of-living-adjustment in 40 years will start arriving in January 2023. The average retiree benefit is going up by $146 per month, to $1,827; while the average disability benefit is increasing by $119 per month, to $1,483.
How much is SSI monthly payment for 2023? ›| Year | COLAa | Eligible individual |
|---|---|---|
| 2020 | 1.6% | 783.00 |
| 2021 | 1.3% | 794.00 |
| 2022 | 5.9% | 841.00 |
| 2023 | 8.7% | 914.00 |
How do I increase my Social Security disability payments? ›
You can increase Social Security Disability payments by working at least 35 years before retiring, understanding the benefits of working past retirement age, and avoiding Social Security's tax consequences. If you are married, married applicants can maximize their disability payments by claiming their spousal benefits.
How do you get the $16728 Social Security bonus? ›Who is eligible for Social Security bonus? For every year that you delay claiming past full retirement age, your monthly benefits will get an 8% “bonus.” That amounts to a whopping 24% if you wait to file until age 70.