The Social Security Administration (SSA) updates its five programs annually to meet the needs of its 72 million beneficiaries. These changes, while expected, can be confusing for people who have not gone through the process before and are unsure what to expect, and some will even surprise veteran recipients who believe they have all of the information.
As usual, the modifications will apply to all beneficiaries, although retirees and handicapped beneficiaries are the most numerous and thus the most affected. Here are some of the changes in 2025.
New and unexpectedly low cost-of-living adjustment (COLA)
Retirees had hoped for a greater COLA because to the volatile inflation numbers over the past year, but were relieved when inflation fell. Their aspirations were disappointed when the October 10 statement revealed a 2.5% increase in benefits for the upcoming year.
Although inflation has slowed, the average retirement benefit will only grow by $49 per month, according to the SSA. This is disappointing news for many. The rise will affect all benefits managed by the SSA, including retirement, disability, survivor, and family benefits, despite the focus on retirement benefits in the figure.
Taxable earnings increase
Social Security is funded by federal taxes, with both employers and employees contributing 6.2%. This tax only applies to earnings up to a yearly maximum, as the benefit program is not infinitely scalable. It was deemed unfair for people to contribute more than they would receive in return. The limit is adjusted annually to keep up with cost of living and salary increases. In 2025, the maximum taxable earnings will increase to $176,100, from $168,000 in 2024.
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Appointments required at Social Security offices
Prior to COVID, Social Security offices used a walk-in system based on first come, first served. Following the pandemic restrictions, officials discovered that scheduling more appointments resulted in shorter wait times. Less wait time and pre-scheduled appointments also meant that patients had more opportunities to gather their documents and be seen by the right person the first time, rather than waiting indefinitely and having to return due to incomplete documentation.
The SSA now requires consumers to arrange appointments for in-person help, including requests for Social Security cards, beginning January 6.
Mos services are now available online, so those who are more tech savvy may be able to skip going in altogether, but in-person services that still require signatures and identity verification in person must now be scheduled by calling their local office and making an appointment over the phone.
The Social Security Administration (SSA) recognizes that some individuals may not be able to schedule an appointment ahead of time and will therefore accept walk-ins. The new appointment system is intended to reduce wait times, not to exclude those who require the service.
The SSA clarified in a news release that they will not refuse service to those who are unable or unwilling to schedule an appointment. Members of vulnerable groups, military personnel, those with terminal illnesses, and anyone in need of emergency or specialized treatment can still walk in for service at our local offices.”