The government has confirmed that multiple changes are coming at Social Security in 2025, and they could affect your July payment. Some of the changes bring small benefit increases while others bring major relief for public sector retirees. The changes range from new income rules to appointment requirements at SSA offices. Here are all the changes at the Social Security that could impact your July payments.
1. Monthly Social Security Payments are Slightly Higher
The Social Security Administration (SSA) applied a 2.5% cost-of-living adjustment (COLA) to all benefit types. This increased the average monthly check for retired workers by about $49, which means that recipients will be receiving $1,976 per month.
Despite the increase, the Medicare Part B premium will be taking more out of Social Security checks following a $10.30 increase from $174.70 to $185 per month. This means that most retirees will only see about a $39 net increase in their July checks.
2. Government Workers Finally See Full Benefits
Following the enactment of the Social Security Fairness Act in January 2024, two controversial rules, the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), were repealed. This was a big win for public sector retirees like teachers, police officers, and firefighters who previously received reduced or no Social Security benefits at all.
Now, about 2.5 million retirees will receive full Social Security payments, while others may even receive retroactive payments dating back to 2024. For instance, a retiree who lost $500 per month under WEP could now get a $6,000 lump sum and even more each month going forward.
3. SSA Offices Now Require Appointments
As of January 6, 2025, most SSA offices require appointments for non-emergency visits, including services like card replacements and updating personal information. Although walk-ins are still allowed in urgent situations, you will have to book appointments for most services. This change aims to reduce long wait times and improve service delivery at the SSA offices.
4. Full Retirement Age Rising Again
The Full Retirement Age (FRA) has been increasing gradually. People born in 1958 reach FRA at 66 years and 8 months, while those born in 1959 will reach FRA at 66 years and 10 months. If you claim benefits before reaching FRA, you risk losing up to 30% of your monthly benefits, while delaying beyond FRA could earn you an 8% increase per year until age 70.
5. You Can Earn More While Collecting Benefits
If you are receiving Social Security benefits but haven’t reached your full retirement age, you can earn up to $23,400 before seeing any reduction in your benefits. This is an increase from $22,320. For those reaching full retirement age in 2025, the limit has gone up to $62,260. Once you reach your full retirement age, you can earn as much as you want without benefit reduction.
6. SSDI Recipients Can Earn More
If you are a beneficiary of Social Security Disability Insurance, you will be earning more in 2025 before risking a reduction in benefits. According to AARP, the 2025 monthly income limits are $1,620 for non-blind recipients and $2,700 for blind beneficiaries. These increments are designed to help beneficiaries cope with inflation.
7. High-income Eearners Will Pay More inTtaxes
In 2025, the amount of income subject to Social Security tax has increased from $168,600 to $176,100. Therefore, if you earn above the previous limit, you will have to part with as much as $465 in additional taxes, while self-employed individuals will pay as much as $930 more.
8. Online Accounts are Now Essential
The SSA now requires that every beneficiary have a “My Social Security” account. This will enable recipients to check their benefits, update their information, and request replacement documents without having to visit an SSA office. This is necessary, considering that several SSA offices have been closed, and the SSA is currently understaffed.
Conclusion
These changes will affect millions of people, particularly retirees. Some, like the COLA increase, will be reflected in the July payments. Some of the changes are also big wins, such as the repeal of WEP and GPO, which will lead to larger gains for certain retirees. It is essential to stay informed to protect your benefits and ensure you comply with any new changes.