Social Security benefits are set to undergo several important changes in 2025, impacting millions of retirees and beneficiaries.
Some of these changes are good news, such as a slight increase in payments and the removal of certain restrictions for public sector workers.
However, there are also new rules that could affect how you manage your Social Security benefits. Here’s a breakdown of the key changes that could impact your July payment.
1. Monthly Social Security Payments Will Be Higher
In 2025, all Social Security benefit types will see a 2.5% cost-of-living adjustment (COLA). This adjustment will increase the average monthly check for retired workers by about $49, bringing the average payment to $1,976.
However, most retirees will see a smaller net increase because of an increase in the Medicare Part B premium, which will rise by $10.30, from $174.70 to $185. As a result, many retirees will see only a $39 net increase in their checks.
2. Full Benefits for Government Workers
A significant change for public sector workers is the repeal of the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), effective from January 2024.
These two provisions, which previously reduced or eliminated Social Security benefits for certain retirees like teachers, police officers, and firefighters, have now been eliminated.
As a result, about 2.5 million retirees will receive full Social Security payments. Some may even be eligible for retroactive payments, going back to 2024.
3. SSA Offices Now Require Appointments
Starting on January 6, 2025, most Social Security Administration (SSA) offices will require appointments for non-emergency visits. Services like card replacements and updating personal information will need to be scheduled in advance.
While walk-ins are still allowed for urgent issues, you’ll need an appointment for most services. This change is designed to improve service delivery and reduce wait times.
4. Full Retirement Age Increases Again
The Full Retirement Age (FRA) for Social Security benefits will continue to rise. People born in 1958 will reach FRA at 66 years and 8 months, while those born in 1959 will reach FRA at 66 years and 10 months.
Claiming benefits before reaching FRA can result in a reduction of up to 30% of your monthly benefit, while waiting until after FRA can increase your monthly payments by 8% for every year you delay until age 70.
5. You Can Earn More While Receiving Benefits
In 2025, Social Security beneficiaries who have not yet reached their full retirement age will be allowed to earn up to $23,400 without seeing any reduction in their benefits. This is an increase from the previous limit of $22,320.
For those who reach FRA in 2025, the earnings limit rises to $62,260. After reaching FRA, there are no limits on how much you can earn without affecting your benefits.
6. Social Security Disability Insurance (SSDI) Recipients Can Earn More
Beneficiaries of Social Security Disability Insurance (SSDI) will also see an increase in the amount they can earn before their benefits are reduced.
In 2025, the monthly income limit for non-blind SSDI recipients is $1,620, and for blind recipients, it’s $2,700. These increases are designed to help beneficiaries cope with inflation and make it easier for them to work while still receiving benefits.
7. High-Income Earners Will Pay More in Taxes
The amount of income subject to Social Security tax will rise in 2025. The new limit will be $176,100, up from $168,600 in 2024.
This means that high-income earners will pay more in Social Security taxes. For those earning above the new limit, this will result in up to $465 in additional taxes, while self-employed individuals will pay as much as $930 more.
8. Online Accounts Are Now Essential
To streamline processes and reduce the need for in-person visits, the SSA now requires all beneficiaries to create a “My Social Security” account online.
This account allows recipients to check their benefits, update their personal information, and request replacement documents without visiting an SSA office.
With many SSA offices closed and understaffed, this online account is becoming essential for managing your Social Security benefits.
The changes coming to Social Security in 2025 will affect millions of people, particularly retirees.
While some changes, like the COLA increase and the repeal of WEP and GPO, will provide significant financial relief for many, others, like the new appointment requirements for SSA offices and the rise in the Full Retirement Age, may require some adjustment.
It’s important to stay informed about these changes to ensure you can take full advantage of the benefits available to you while avoiding potential pitfalls.
FAQs
What are the key changes to Social Security in 2025?
In 2025, Social Security beneficiaries will see several changes, including a 2.5% cost-of-living adjustment (COLA) to benefits, full benefits for public sector workers due to the repeal of WEP and GPO, and new appointment requirements for SSA offices.
How much will Social Security payments increase in 2025?
Social Security payments will increase by 2.5% in 2025. This adjustment will raise the average monthly check for retired workers by about $49, bringing the average payment to $1,976. However, many retirees will see only a smaller net increase due to a rise in Medicare Part B premiums.
How will the repeal of WEP and GPO affect public sector workers?
Public sector workers, such as teachers, police officers, and firefighters, will now receive full Social Security benefits after the repeal of the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). Many of these workers will also receive retroactive payments from 2024.
What changes are there to SSA office appointments?
Starting in 2025, most Social Security Administration (SSA) offices will require appointments for non-emergency visits, such as replacing a card or updating personal information. Walk-ins will still be allowed in urgent situations, but most services will require a scheduled appointment.
Has the Full Retirement Age (FRA) changed for 2025?
Yes, the Full Retirement Age (FRA) has increased slightly for people born in 1958 and 1959. In 2025, those born in 1958 will reach FRA at 66 years and 8 months, and those born in 1959 will reach FRA at 66 years and 10 months.
