Social Security COLA 2025: The Social Security Administration (SSA) has announced a 2.5% Cost-of-Living Adjustment (COLA) for 2025, impacting over 72.5 million Americans. Starting in January 2025, nearly 68 million Social Security beneficiaries will see their payments increase, while approximately 7.5 million Supplemental Security Income (SSI) recipients will begin receiving increased benefits on December 31, 2024. This adjustment aims to help beneficiaries keep up with inflation and rising living costs.
Key Changes to Social Security Benefits for 2025
One of the most significant updates is the increase in the taxable maximum amount of earnings subject to Social Security tax, which will rise to $176,100. This change affects higher-income earners contributing to the Social Security program. Additionally, the earnings limits for workers below full retirement age will also increase. Specifically:
Workers younger than full retirement age: The earnings limit will be $23,400, with $1 deducted from benefits for every $2 earned over this threshold.
Workers reaching full retirement age in 2025: The earnings limit will increase to $62,160, with $1 deducted from benefits for every $3 earned over this limit until the month they reach full retirement age.
Full retirement age and older: There will be no earnings limit for those who have reached full retirement age for the entire year.
Simplified COLA Notices for 2025
In December 2024, beneficiaries will receive updated and simplified COLA notices via their my Social Security accounts. For the first time, these notices will be designed to make it easier for recipients to find critical information about their benefit changes. The new one-page format will use plain language and outline the exact dates and dollar amounts of the new benefits, including any deductions.
Beneficiaries can access these notices online through the secure Message Center of their my Social Security account. Users have the option to receive alerts about their COLA notice via email, text, or both. Additionally, those who prefer to avoid mail notifications can opt out and rely solely on digital communications. This streamlined process not only enhances convenience but also ensures that important details are accessible and easy to understand.
Protect Yourself from Social Security Scams
The SSA is urging beneficiaries to stay alert for potential scams and fraud. The agency will never ask for personal information through unsolicited calls, emails, or messages, nor will it request fees in the form of wire transfers or gift cards. Be cautious of fraud attempts, and never share your Social Security number or sensitive information with suspicious sources. If you suspect fraud, report it immediately at https://oig.ssa.gov/report or call the Inspector General’s Fraud Hotline.
Reporting Life Changes and Pension Updates
It’s crucial to inform the SSA of any major life changes that could affect your benefits. This includes getting married, divorced, or if your spouse or ex-spouse passes away. Additionally, if you or a dependent receiving benefits experience changes in living arrangements, report these updates promptly. Beneficiaries who receive pensions from non-Social Security-covered employment should notify the SSA to ensure their benefits are calculated accurately.
Stay informed about these changes to make the most of your Social Security and SSI benefits in 2025. For more information, visit the official SSA website and review your personalized COLA notice in your my Social Security account this December.
