Every year, the Social Security Administration (SSA) changes its operations to keep up with the times and better serve its more than 72 million recipients spread across five programs.
Even though each program is unique and has different entry requirements, Americans must be aware of other aspects of the SSA.
There are changes that affect beneficiaries, such as an increase in the cost of living (COLA), as well as changes that affect workers (future beneficiaries), such as an increase in taxable earnings. So what are the major changes to Social Security?
2025 Social Security COLA
Every year, benefits are subject to a cost-of-living adjustment, or COLA, to ensure that beneficiaries can keep up with inflation and maintain purchasing power. The adjustment is announced in October, following the release of third-quarter inflation data.
This year’s increase will be 2.5%, which, when applied to a retired person’s average Social Security benefit (for example), will increase their benefits by approximately $49 per month.
Even though it appears to be a small increase, it is consistent with the average COLA since 2000, which has been 2.6%. Our perception may be slightly skewed by the increases 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 applies to all Social Security benefits, not just retirement, so those receiving supplemental security income, disability, survivor, and family benefits will also see an adjustment, even if the exact dollar amount varies.
The earnings limit is increasing
It is possible to work and receive benefits at the same time; however, if you earn more than a certain amount in 2025, $23,400 for those who are not yet at full retirement age and $62,160 for those who are, some of your benefits will be withheld.
The withholding is not permanent; once you reach full retirement age, your benefits will be recalculated with the withheld amount.
Taxable earnings increase
In the United States, all workers contribute to Social Security through federal taxes, and they pay 6.2% of employees’ wages, which are matched by an additional 6.2% from employers. This payroll tax is capped by a yearly income limit, so earnings above the threshold are not taxed for Social Security.
For 2025, the maximum taxable earnings will be $176,100, up from $168,000 in 2024. This adjustment reflects national wage trends and ensures that the Social Security program continues to generate sufficient revenue.
Appointments required at Social Security offices
This process began during the pandemic, but its success resulted in most offices implementing an appointment system and discouraging walk-ins. This is to ensure that services are delivered as quickly as possible and that customer wait times are kept to a minimum.
Most services are now available online, but for those requests that still require in-person assistance, the SSA encourages customers to call ahead and schedule an appointment to receive personalized attention. However, walk-ins are still welcome.
“We want to be clear that we will not turn people away for service because they are unable or unwilling to make an appointment,” the Social Security Administration stated 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.”
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