The Social Security Administration (SSA) updates its operations annually to better serve its 72 million recipients across five programs. While each program has unique entry requirements, Americans must also consider other aspects of the Social Security Administration.
Changes can impact both beneficiaries and workers, such as increases in COLA and taxable earnings. What are the main changes to Social Security?
2025 Social Security COLA
Every year, benefits undergo a cost-of-living adjustment (COLA) to 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 2.5% rise will add around $49 per month to the average Social Security payment for retirees.
Despite the slight rise, it is consistent with the average COLA since 2000 of 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 affects all Social Security payments, including supplemental security income, disability, survivor, and family benefits, regardless of the specific cash amount.
The earnings limit is increasing
Earning more than a particular amount in 2025, $23,400 for those under full retirement age and $62,160 for those who are, may result in certain benefits being withheld.
The withholding is temporary; once you reach full retirement age, your benefits will be recalculated using the amount withheld.
Taxable earnings increase
In the United States, workers contribute to Social Security through federal taxes, with businesses matching 6.2% of employee wages. The payroll tax is restricted by a yearly income ceiling, so wages above the threshold are not charged for Social Security.
In 2025, the maximum taxable earnings will increase to $176,100, from $168,000 in 2024. This adjustment reflects national salary patterns and ensures the Social Security program collects sufficient cash.
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.
Although most services are now available online, the SSA recommends calling ahead to schedule in-person appointments for specialized help. However, walk-ins are still welcome.
The Social Security Administration stated in a news release that individuals who are unable or unwilling to schedule an appointment would not be denied service. “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