The Social Security Administration (SSA) makes changes to its workings every year to be able to keep up with the times and serve its more than 72 million recipients spread across the five programs it runs. Even though each program is different and has different requirements to enter, this is not the only thing Americans have to pay attention to when it comes to the SSA.
There are changes that affect beneficiaries, like a cost of living (COLA) increase, but there are also changes that affect workers (future beneficiaries) like an increase in taxable earnings. So, what are the main changes to Social Security?
2025 Social Security COLA
Every year, benefits go through a cost of living adjustment, better known as COLA, to ensure that beneficiaries can keep up with inflation and do not lose purchasing power. The adjustment is announced in October after the inflation data for the third quarter of the year becomes available.
This year the increase will be 2.5%, which, when applied to the average Social Security benefit that a retired person receives (just to give an example) will increase their benefits by about $49 a month.
Even though it seems like a small increase, it is in line with the average COLA since 2000, which has been 2.6%. Our perception may be slightly skewed by the increases that we have seen since 2020 due to the aftereffects of the COVID 19 pandemic, which plunged the economy into chaos and made inflation skyrocket.
The COLA is applied to all Social Security benefits, not just retirement, which means that those receiving supplemental security income, disability, survivor and family benefits will also receive an adjustment, even if the exact dollar amount varies.
The Earnings Limit Is Increasing
Working and receiving benefits at the same time is possible, but if you earn more than a certain amount of money in 2025, $23,400 for people who are not turning their full retirement age in 2025 and $62,160 for those who are, you will have some of your benefits withheld.
The withholding will not be permanent, as once you turn full retirement age, your benefits will be recalculated with the withheld amount.
Taxable Earnings Increase
In the U.S., all workers contribute to Social Security through federal taxes and they pay 6.2% of wages for employees, matched by another 6.2% from employers. This payroll tax is capped by a yearly income limit, meaning earnings above the threshold are not taxed for Social Security.
For 2025, the maximum taxable earnings will rise to $176,100, an increase from $168,000 in 2024. This adjustment reflects national wage trends and ensures the Social Security program continues to collect sufficient revenue.
Appointments Required At Social Security Offices
This process already started during the pandemic, but its success meant that most offices are now implementing an appointment system and discouraging walk-ins. This is to ensure that services are as quick as possible and that wait times are reduced for customers.
Most services are online nowadays, but for those requests that still need in-person assistance, the SSA is encouraging customers to call ahead and book a time to go in and get personalized attention. However, walk-ins will still be welcome.
“We want to make it clear that we will not turn people away for service who are unable to make an appointment or do not want to make an appointment,” the Social Security Administration said 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.”
