Every year, the Social Security Administration makes adjustments that directly affect the millions of Americans who rely on SSI and SSDI. The changes rolling into 2025 and 2026 are particularly significant, with cost-of-living adjustments, updated earnings limits, and policy shifts that could impact your monthly check and your benefits planning. Here's what you need to know.
In this article, we'll cover:
- The latest cost-of-living adjustment (COLA) and what it means for your payment
- Updated SSI and SSDI payment amounts
- Changes to work-related thresholds and earnings limits
- Updates to the ABLE account contribution limits
- Policy and administrative changes at SSA
- What these changes mean for your day-to-day financial planning
The Cost-of-Living Adjustment (COLA)
Each year, Social Security adjusts benefit amounts based on inflation through the cost-of-living adjustment, or COLA. After a historically high 8.7% increase in 2023, the adjustments have moderated. The COLA for 2025 was 2.5%, and the 2026 adjustment continues to reflect a stabilizing inflation environment.
While any increase is welcome, recipients have noted that the COLA often doesn't keep pace with the actual rising costs they face, particularly for housing, healthcare, and food. A 2-3% increase on a payment of $994/month amounts to roughly $20-30 more per month, which may not offset the price increases many families experience. Still, the adjustment helps prevent benefits from falling further behind.
Updated Payment Amounts for 2026
The 2026 payment amounts reflect the latest COLA adjustment. For SSI, the federal maximum payment is now $994/month for individuals and $1,491/month for couples. Remember that your actual SSI payment may be lower if you have other income, and some states provide an additional supplement on top of the federal amount.
For SSDI, the average monthly payment is approximately $1,630/month, though individual payments vary widely based on your earnings history. The maximum SSDI benefit for 2026 is $4,152/month, which goes to workers who earned at or above the maximum taxable earnings for many years before becoming disabled.
It's worth noting that the SSI resource limit remains unchanged at $2,000 for individuals and $3,000 for couples. This limit has not been updated since 1989, and while there have been legislative proposals to raise it, none have been enacted. This continues to be one of the most significant financial constraints for SSI recipients.
Changes to Work and Earnings Limits
If you work or are thinking about working, several thresholds have been updated for 2026. The Substantial Gainful Activity (SGA) limit, which determines how much you can earn while still receiving SSDI, is now $1,690/month for non-blind individuals and $2,830/month for blind individuals. If your earnings consistently exceed the SGA limit, Social Security may determine that you're no longer disabled for SSDI purposes.
The Trial Work Period (TWP) threshold has been set at $1,210/month for 2026. During a trial work period, SSDI recipients can test their ability to work for up to nine months (not necessarily consecutive) within a 60-month window while still receiving their full SSDI benefit. Any month in which you earn more than $1,210 counts as a trial work month.
For SSI recipients who work, the rules are different. SSI uses a more complex income calculation where the first $65 of earned income and half of remaining earned income are excluded from countable income. The Student Earned Income Exclusion allows students under age 22 to exclude up to $2,450/month (up to $9,840/year in 2026) from countable income.
The amount needed to earn one work credit has increased to $1,890 for 2026. You can earn up to four credits per year, and work credits are relevant for qualifying for SSDI and eventually for retirement benefits.
ABLE Account Updates
ABLE accounts continue to be an important savings tool for people with disabilities. The annual contribution limit for 2026 is $20,000, and the ABLE to Work provision allows employed account holders to contribute an additional approximately $15,650 above the standard limit.
One of the most significant upcoming changes is the expansion of ABLE eligibility. Starting in 2026, the age-of-onset requirement for ABLE accounts will increase from age 26 to age 46. This means that individuals whose disability began before age 46 (rather than the current age 26) will be eligible to open an ABLE account. This change, passed as part of the ABLE Age Adjustment Act, is expected to make millions more Americans eligible for these tax-advantaged savings accounts.
This is a big deal for anyone who acquired a disability later in life and has been shut out of ABLE accounts. If you've been waiting for this change, 2026 is the year to look into opening an account.
Policy and Administrative Changes at SSA
Beyond the numbers, there have been significant shifts in how SSA operates. The agency has been grappling with staffing challenges, office closures, and long wait times for disability determinations and appeals. Processing times for initial disability claims and reconsiderations have been a persistent concern, with some applicants waiting months or even over a year for decisions.
SSA has also been implementing changes to how overpayments are handled. After controversy over aggressive collection practices, the agency adjusted its approach to overpayment recovery, returning to lower default withholding rates and reaffirming recipients' rights to appeal and request waivers. However, overpayment notices remain a significant concern for many recipients.
There has been increased emphasis on using technology and data matching to verify eligibility and detect discrepancies. While this can help reduce fraud, it also means recipients need to be even more diligent about reporting changes and keeping accurate records, as automated systems may flag issues that weren't previously caught.
The political landscape around Social Security has also been active, with ongoing debates about the future of the trust fund, proposals to modify disability benefit programs, and discussions about modernizing SSI's outdated rules (including the resource limit and the in-kind support and maintenance provisions). While major legislative changes haven't been enacted, it's an area worth watching.
What These Changes Mean for You
For most SSI and SSDI recipients, the practical takeaways are straightforward. Your monthly payment has increased modestly thanks to the COLA, but the underlying financial constraints, especially the SSI resource limit, remain the same. If you work, your earnings thresholds have been updated, so make sure you know the new limits before taking on additional hours or a new job.
If you're between ages 26 and 46 and have a qualifying disability, 2026 opens the door to ABLE accounts for the first time. This is a genuinely exciting development that could significantly improve your ability to save.
And as always, staying on top of your reporting obligations, keeping accurate financial records, and understanding how the various rules interact is the best way to protect your benefits and avoid surprises.
Keeping up with SSA changes shouldn't be your burden to carry alone. Purple's checking account is designed specifically for SSI and SSDI recipients, with built-in tools to help you track your resources, stay compliant, and adapt to changing benefit rules.