Every year, the Social Security Administration (SSA) adjusts its operations to stay up with the times and better serve its more than 72 million recipients divided across five programs. Even though each program is unique and has various entry requirements, Americans must be aware of other aspects of the SSA.
There are changes that affect beneficiaries, such as an increase in the cost of living adjustments (COLA), as well as those that affect workers (future beneficiaries), such as an increase in taxable earnings. So what are the major changes to Social Security?
2025 Social Security COLA
Every year, payments are subject to a cost-of-living adjustment, or COLA, to guarantee that beneficiaries can keep up with inflation and maintain purchasing power. The adjustment is announced in October, following the release of third-quarter inflation figures. This year’s rise will be 2.5%, which, when applied to a retired person’s average Social Security income (for example), will enhance their payments by approximately $49 per month.
Even though it appears to be a minor increase, it is consistent with the average COLA since 2000, which has been 2.6%. Our impression may be slightly biased by the rises that have occurred since 2020 as a result of the COVID 19 pandemic, which threw the economy into chaos and caused inflation to skyrocket.
The COLA applies to all Social Security benefits, not just retirement, so people receiving supplemental security income, disability, survivor, and family benefits will also see an adjustment, even if the actual cash amount fluctuates.
The earnings limit is increasing
It is possible to work and get benefits at the same time; however, if you earn more than a particular amount in 2025, $23,400 for those who are not yet at full retirement age and $62,160 for those who are, some of your benefits will be withheld.
The withholding is not permanent; once you reach full retirement age, your benefits will be recalculated with the withheld amount.
Taxable earnings increase
In the United States, all workers contribute to Social Security through federal taxes, and they pay 6.2% of employees’ wages, which are matched by an additional 6.2% from employers. This payroll tax is restricted by a yearly income ceiling, so earnings above the threshold are not taxed for Social Security.
For 2025, the maximum taxed earnings will be $176,100, up from $168,000 in 2024. This adjustment reflects national salary patterns and guarantees that the Social Security program continues to generate sufficient money.
Appointments required at Social Security offices
This approach began during the pandemic, but its effectiveness resulted in most offices instituting an appointment system and discouraged walk-ins. This is to guarantee that services are delivered as quickly as possible and that customer wait times are kept to a minimum.
Most services are now available online, but for those requests that still require in-person assistance, the SSA encourages clients to contact ahead and schedule an appointment to receive customized attention. However, walk-ins are still welcome.
“We want to be clear that we will not turn people away for service because they are unable or unwilling to make an appointment,” the Social Security Administration stated in a news release. “For example, members of vulnerable populations, military personnel, people with terminal illnesses, and people with other situations requiring immediate or specialized attention may still walk in for service at our local offices.”
Also See:- List of all Social Security payments still due in December – 1 comes with COLA increase
