After the 2024 Cost of Living Adjustment (COLA) was announced, people who get Social Security Disability Insurance (SSDI) can be sure that their payments will go up. Because of this change, starting in January 2024, SSDI benefits will go up. This will help millions of disabled workers and their families with their money problems.
2024 COLA Boost for SSDI
The Social Security Administration (SSA) has confirmed a 3.2% increase in SSDI payments, which is part of the annual COLA adjustment to account for inflation.
This increase is automatic and applies to all SSDI beneficiaries without any additional action required. The boost is designed to help SSDI recipients maintain purchasing power in the face of rising living costs.
| Year | SSDI Maximum Benefit |
|---|---|
| 2023 | $3,627 |
| 2024 | $3,822 |
For 2024, the maximum SSDI benefit is rising to $3,822 per month, up from $3,627 in 2023. This increase reflects the rising cost of living and ensures that individuals who have paid into the system through taxes receive adequate support as prices for goods and services continue to rise.
Average SSDI Payments for 2024
While the maximum benefit is a crucial number, many SSDI recipients receive less based on their lifetime earnings and work history. The average SSDI benefit will increase from $1,489 in 2023 to $1,537 in 2024. This adjustment, although modest, can help cover essential expenses such as medical bills, utilities, and daily necessities for disabled workers.
How SSDI Payments Are Calculated
The exact amount of SSDI payments you get is calculated by a formula that looks at how much you’ve earned over your lifetime and how much you paid in Social Security taxes.
Average Indexed Monthly Earnings (AIME) is a complicated method that the SSA uses with percentages to figure out your Primary Insurance Amount (PIA). In 2024, SSDI payments can be as low as $100 or as high as $3,822 per month, based on the person’s work history and taxable income.
Key Factors Affecting SSDI Payments
- Work History: To qualify for SSDI, you must have worked long enough and paid Social Security taxes. Generally, you need 40 credits, which equates to about 10 years of work, with at least 20 credits earned in the last 10 years before becoming disabled.
- Income Thresholds: The SSA has income thresholds for those receiving SSDI. For non-blind beneficiaries, the Substantial Gainful Activity (SGA) limit is $1,550 per month in 2024, up from $1,470 in 2023. Blind individuals have a higher threshold of $2,590 per month.
- COLA Adjustments: Each year, SSDI benefits are adjusted based on inflation rates. This year’s COLA ensures that beneficiaries do not lose purchasing power due to inflation.
Payment Schedule for SSDI in 2024
SSDI payments follow a monthly schedule, and the exact date you receive your benefit depends on your birthday. For those born between the 1st and the 10th, payments are made on the second Wednesday of the month.
For birthdays between the 11th and the 20th, payments are issued on the third Wednesday, and for those born after the 20th, payments arrive on the fourth Wednesday of each month.
Conclusion
The rise in SSDI payments for 2024 is a big financial help for millions of disabled workers. The highest monthly benefit has been raised by 3.2%, to $3,822. The average monthly benefit will now be $1,537. For people who get SSDI, this rise is welcome news because it helps them pay their living costs while prices are going up.
