2025 Public Benefit Updates
In 2025, individuals with disabilities will encounter important updates to Social Security, ABLE accounts, and other related benefit programs that may impact their financial planning and eligibility for various services. Here’s what individuals and families need to know:
Here’s what individuals and families need to know:
1. Social Security Changes
Social Security benefits announced some new adjustments for 2025:
Cost-of-Living Adjustment (COLA): There will be a 2.5% COLA increase for Social Security recipients to account for inflation and rising costs. The monthly maximum Federal amounts are $967 for an eligible individual, $1,450 for an eligible individual with an eligible spouse.
SSI Income Limits: The monthly income limits for SSI eligibility will be updated. In 2025, the general income limit will increase slightly, but it's still important to understand how income affects eligibility. For individuals receiving SSI, the first $20 of unearned income and the first $65 of earned income per month are not counted toward eligibility.
Asset Limits for SSI: The asset limits for SSI eligibility remain at $2,000 for individuals and $3,000 for couples, though individuals with ABLE accounts can accumulate savings without jeopardizing their SSI eligibility.
2. ABLE Accounts
ABLE accounts are an essential tool for individuals with disabilities to save and manage money while maintaining eligibility for government benefits like SSI and Medicaid. In 2025, there are updates to the contribution limits and features:
Contribution Limit for ABLE Accounts: The basic contribution will increase to $19,000 for 2025, tied to the annual gift tax exclusion amount that is set by the IRS and adjusted periodically for inflation.
No Impact on Benefits: Any amount saved in an ABLE account up to $100,000 will not count against SSI or Medicaid eligibility, so individuals can save without risking loss of benefits.
Individuals can use these savings to pay for disability-related expenses (QDEs) that benefit them covering a broad range of expenses like housing, healthcare, education, transportation, and personal support services.
3. Other Benefits and Changes in 2025
Other government programs impacting individuals with disabilities will also see changes in 2025:
Medicaid Expansion: Medicaid remains a crucial program for individuals with disabilities. In 2025, Medicaid eligibility and coverage will remain a primary support system.
Work Incentives for Disability Benefits: The Social Security Administration continues to offer work incentives for individuals who receive SSDI or SSI. Programs like Ticket to Work help individuals with disabilities explore employment opportunities without immediately losing their benefits.
4. How to Plan for 2025
To make the most of these changes, individuals with disabilities and their families should:
Stay Informed: Regularly check for updates to SSI, Medicaid, and ABLE account regulations through official sources like the Social Security Administration, ABLE National Resource Center, and your state’s ABLE program.
Consult a Financial Advisor or Care Manager: A financial advisor, elder law attorney or care manager familiar with disability benefits can help you navigate the rules around savings and benefits eligibility, ensuring that you take full advantage of new changes.
Review Health and Wellness Benefits: Make sure you understand how Medicaid, health insurance, and other wellness-related benefits will support you in 2025 and beyond.
Onward
The changes in Social Security, ABLE accounts, and other disability-related benefits in 2025 provide valuable opportunities for individuals with disabilities to save more, work without losing benefits, and improve their quality of life.