For millions of Americans relying on Social Security Disability Insurance (SSDI), those monthly payments are a financial lifeline. But what if that check suddenly gets smaller?
Many SSDI recipients don’t realize that certain changes in their income, benefits, or living situation can lead to reductions in their payments. To avoid unpleasant surprises, here’s what you need to know about why your SSDI payments could shrink – and what you can do to prevent it.
1. Receiving Workers’ Compensation or Public Disability Benefits
If you’re also collecting workers’ compensation or other public disability benefits, your SSDI payments might take a hit. The Social Security Administration (SSA) has a rule: your combined benefits (SSDI plus other public disability payments) cannot be more than 80% of what you earned before you became disabled. If they are, your SSDI check will be reduced.
2. Earning Too Much from Work
Thinking of returning to work? Be careful—if your earnings go above the SSA’s “Substantial Gainful Activity” (SGA) limit, your benefits could be reduced or even stopped. In 2024, the SGA limit is $1,550 per month ($2,590 for blind individuals). Exceeding this amount signals to SSA that you may no longer need full disability benefits.
3. Overpayments from SSA
Mistakes happen, and sometimes the SSA pays you more than you should receive. This could be due to unreported changes in income, an administrative error, or delays in processing updates. If the SSA discovers an overpayment, they will reduce your future SSDI checks to recover the extra money. The best way to avoid this? Always report changes in your income or situation promptly.
4. Changes in Living Arrangements or Marital Status
Did you get married, divorced, or move in with someone? These changes can affect your SSDI benefits. For example, if you start living with someone who helps cover expenses, SSA might assume you have additional financial support and adjust your payments accordingly. Always notify SSA about any changes in your household to avoid unexpected reductions.
5. Reaching Retirement Age
If you’re approaching retirement, know that once you hit full retirement age, your SSDI benefits automatically convert to Social Security retirement benefits. The amount usually stays the same, but it’s good to be aware of this shift.
How to Protect Your SSDI Benefits
The last thing anyone wants is a sudden drop in their benefits. Here’s how you can safeguard your SSDI payments:
Report Changes Immediately: Whether it’s a new job, additional income, a change in living arrangements, or a marital status update—always inform SSA as soon as possible.
Track Your Payments: Keep an eye on your SSDI deposits to spot any unexpected reductions early.
Stay Informed: Rules change, and what’s allowed today might not be tomorrow. Check SSA’s website or speak with an expert to stay updated.
Get Help if Needed: If your benefits get reduced and you don’t understand why, consider consulting a Social Security disability attorney or advocate. They can help you appeal reductions or correct mistakes.
For those relying on SSDI, staying informed and proactive is the best way to ensure those payments keep coming as expected. Keep an eye on these key factors, and don’t hesitate to reach out for help if something seems off.
