In May 2025, major changes in Social Security will impact seniors, disabled individuals, and workers drawing benefits. The changes will see benefit increases, tax adjustments, and administrative improvement.
Below is an in-depth summary of the most salient changes:
COLA (Cost of Living Adjustment) for 2025
As announced by the Social Security Administration (SSA), a 2.5% increase of COLA occurs in the year 2025. The purpose of this mod to support beneficiaries keeping up with inflation. On average, retirees can expect $49 extra in their monthly checks, taking the average monthly benefit from $1,927 to $1,976. For married couples, the average benefit will go up by $75 to $3,089 a month.
Updated Earnings Limits for Working Beneficiaries
Beneficiaries who continue to work while receiving benefits from Social Security should be aware of the new earned income limits related to:
The annual earnings ceiling has raised by the amount of $23,400 if a claimant’s income is earned while the claimant reaches Full Retirement Age (FRA). For every $2 over this threshold, a $1 reduction in benefits will occur.
In 2025, the earnings limit threshold for full retirement age will now stand at $62,160 in 2025. Any earnings beyond that will lead to a reduction of $1 for every $3 in benefits above the limit until full retirement age is attained.
Increased Taxable Maximum Earnings
In 2025, wages subject to Social Security tax went up to 176,100 from 168,600 in 2024. This means the higher-income people would pay more into Social Security.
Adjustments for Full Retirement Age (FRA)
The FRA has been increased for those born in 1959 to 66 years and as much as 10 months. Those born in 1960 or later will reach their FRA at age 67. It is important to know that benefits taken prior to the FRA will mean a reduction of the monthly benefit payment.
Changes in Social Security Credits
To get one Social Security credit in 2025, individuals must earn $1,810, up from $1,730 in 2024. Earning four credits in a year needs $7,240 of revenue. To be eligible for retirement benefits, you must have accumulated 40 credits over your lifetime.
Amplified Identity Verification Measures
Starting March 31, 2025, the SSA has introduced tighter identity verification measures. The aim of enhancing security and reducing fraud will require beneficiaries to undergo some form of identity verification, either online or in-person.
Cancellation of Proposed Phone Service Cuts
The original proposal from SSA was to limit the use of phone services that could affect especially the older citizens in many rural areas. After an outcry by the public, the administration had to reverse its decision and announce that still, Social Security services can be accessed through phones.
2025 Payments Calendar:
Payments for social security are issued depending on beneficiaries’ birthdays.
- Those whose birthdays fall between the 1st and 10th of the month will receive payments every second Wednesday of the month.
- Persons born from the 11th to the 20th will be paid every third Wednesday of the month.
- Individuals with birthdays between the 21st and the 31st will receive payments every last Wednesday of the month.
- SSI payment will be made on the first of each month.
Changes to Supplemental Security Income
For 2025, the maximum federal SSI payout amounts are:
- Individuals pay $967 each month.
- Couple pays $1,450 each month.
- Essential Person pays $484 per month.
- These figures represent a 2.5% COLA increase.
Any changes to the current legislation are going to affect the benefits affected. The Social Security Fairness Act suspended the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) with respect to some beneficiaries. These beneficiaries will receive a payment retroactive to January 2024 for these adjustments, with final details expected in early November 2025.
Concerns About Benefit Sufficiency
A recent survey notes that 76% of Americans believe that the average Social Security check of $1,978 is not enough to pay for their living expenses after retirement. Because of this, many people are considering working longer to supplement their income.
Controversial Measures Affecting Immigrants
The Trump administration has taken measures to designate certain immigrants as deceased in the databases of the SSA, thereby canceling their Social Security numbers. The intention is to compel them to self-deportation by limiting their access to jobs and benefits.
FAQS:
What will be the major changes in social security in May 2025?
The Social Security Administration will see changes such as the eligibility criteria, benefit amounts due to cost-of-living adjustments, and payment dates in May 2025.
Will my Social Security benefits increase in May 2025?
Many beneficiaries could expect an increase due mainly to inflation adjustments and cost-of-living adjustments (COLA) relevant for the year 2025.
Who will be eligible under the New Social Security rules of May 2025?
Eligibility is usually based on age, income, and work record. Other specialized modifications are stipulating about retiree status, SSDI, SSI, and low-income entering seniors, so check the official SSA handbook for correct existing information.
When will the new Social Security payments be deposited?
The new amounts will be reflected in your payment for May 2025, if applicable. Payments will be subject to the standard SSA monthly payment schedule, which is usually done based on birth date or payment type.