American News Group

Social Security changes you should know heading into next year

The Social Security Administration will make changes next year to address inflation, affecting its more than 72 million recipients.

People entering retirement and people who receive disability payments and social security benefits will be the most impacted.

Smaller cost-of-living adjustment (COLA)

The lowest cost-of-living adjustment in four years will take effect in January at 2.5%, increasing retirement benefits by about $49 a month, according to the SSA.

COLA is a yearly increase in social security benefits to account for inflation and its impact on the cost of living. The average COLA since 2000 has been 2.6%.

Next year’s COLA is down from the 3.4% in 2024 and the 8.7% in 2023, a sign of cooling inflation.

The adjustment is applied to all Social Security payments, including retirement, disability, survivor and family benefits.

The earnings limit for people reaching their full retirement age in 2025 will increase to $62,160, according to the SSA.

Taxable earnings increase

All workers in the U.S. are subject to federal taxes that fund Social Security — 6.2% for employees and 6.2% for employers. There is a maximum amount of earned income that is taxed, and that amount changes yearly.

In 2025, the maximum taxable earnings will increase to $176,100, up from $168,000 in 2024.

Appointments required at Social Security offices

Local Social Security offices nationwide are transitioning to appointment-based services to reduce wait times and streamline the process. Beginning Jan. 6, customers must schedule an appointment if they need assistance in person, including requests for Social Security cards.

Customers are encouraged to use the online services webpage but can schedule an appointment if in-person services are needed by calling their local office.

Although the SSA is pushing for appointment-only services, local offices will accept walk-ins.

“We want to make it clear that we will not turn people away for service who are unable to make an appointment or do not want to make an appointment,” the Social Security Administration said 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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