Whether you just started your career or you are well established in your field, you likely did not expect that one day you would not be able to work due to an injury or illness. Thus, you are probably unfamiliar with the process of filing for Social Security Disability benefits to address the losses caused by the inability to work.
Furthermore, you may not understand how amounts are calculated and what impacts these payments from year to year.
Cost-of-living adjustment
Every year, Social Security has a cost-of-living adjustment. Doing this provides those receiving Social Security benefits, including Social Security Disability benefits, to have their benefits adjusted against the rising prices.
In other words, the Social Security Administration tracks changes in consumer prices year to year and SSD benefit amounts are adjusted according to these changes.
Based on current reports, those collecting Social Security Disability Insurance or SSDI who are unable to work due to a serious health condition will receive an 8.7% increase in their monthly benefits.
Substantial gainful activity impacting benefits
Much like the cost-of-living adjustment occurs each year, the substantial gainful activity of SGA is adjusted annually as well. This is important to note because these changes could lead an SSD beneficiary to exceed this gap. If this is the case, they may lose their SSDI eligibility.
For 2023, the SGA was adjusted to $1,470 a month, which is up from $1,350 the previous year. This essentially means that an individual could make more without the risk of losing their benefits. Because this cap can move up and down, it is important that individuals understand how this could impact them now and in the future.
Receiving SSD benefits is often necessary, especially if you are unable to return to work in the near future due to an injury or illness. Thus, it is important that one not only understands how to apply for these benefits but also what steps they could take if they are denied benefits or have lost their eligibility for benefits due to an annual adjustment.
