Social Security has been in existence for a very long time, but it still changes every year. These adjustments are often made in January. This year was no different.
Social Security benefits for elderly increased by 2.5 percent every month at the beginning of 2025. Since it was the smallest rise in years, retirees who were expecting more money were really disappointed by that cost-of-living adjustment.
Fortunately, though, inflation has somewhat decreased since the year began. Therefore, such rise might be somewhat beneficial to seniors.
The earnings-test limits for Social Security also increased at the start of 2025. Seniors who work and receive benefits simultaneously now have the chance to increase their income without running the risk of having a portion of their Social Security withdrawn.
At the beginning of the year, Social Security also increased its wage cap. In order to finance the program, wealthier incomes are now required to pay taxes on a larger portion of their income.
Additionally, a single Social Security work credit became worth more. Although full-time employees are unlikely to notice this change, it technically makes it more difficult to qualify for benefits.
However, seniors might not be able to directly experience a few Social Security reforms until May. You should be aware of these two significant ones.
For certain recipients, benefits rise
The Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) reduced the monthly income of some Social Security claimants for years. An estimated 3.2 million beneficiaries were affected by these provisions.
Many Social Security claimants may notice an increase in their monthly income as a result of the Social Security Fairness Act, which repeals the GPO and WEP.
It’s possible that some beneficiaries witnessed this event in April. However, you might still be eligible for an increase because the Social Security Administration is still processing modifications.
Additionally, the Social Security Fairness Act allows many Social Security claimants to receive a one-time retroactive payment.
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However, not all of those payments have yet to be made by the Social Security Administration (SSA). Therefore, that money might arrive in May if you are eligible and haven’t received yours yet.
To receive benefits, applicants might need to complete additional requirements
Stricter processes are being put in place by the SSA to confirm benefit applications. The agency’s attempts to prevent fraud and the scrutiny it has received for excessive spending could be contributing factors.
You can no longer use the phone to confirm your identification while applying for benefits. You have two options: visit your neighbourhood Social Security office or use the agency’s online service.
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Naturally, the announcement of Social Security office closures coincides with this development. To facilitate the procedure, you might want to create an online account.
Even though 2025 is a long way off, Social Security is still undergoing adjustments. Keep an eye out for additional program updates as 2025 progresses.
