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A different privacy policy and terms of service will apply. Continue Cancel Social Security BIGGEST SOCIAL SECURITY CHANGES FOR 2025 MONTHLY PAYMENTS ARE GOING UP, AND DROP-IN SERVICE AT SSA OFFICES IS LARGELY GOING AWAY -------------------------------------------------------------------------------- By Andy Markowitz, AARP 178 Comments Published December 04, 2024 Chris Gash * Facebook * Twitter * LinkedIn The cost-of-living adjustment (COLA) may be the most widely anticipated way Social Security changes from year to year, but it’s far from the only one. Inflation, wage trends and new policies directly affect not just the more than 68 million people receiving Social Security benefits but also the estimated 184 million workers (and future beneficiaries) paying into the system. Here are seven important ways Social Security will be different in 2025. Members only Join Join AARP Instant access to benefits! Explore everything membership offers! Members only 1. COST-OF-LIVING ADJUSTMENT Inflation continued to cool this year , resulting in a 2.5 percent COLA for 2025 for people receiving Social Security payments, down from 3.2 percent in 2024. The estimated average retirement benefit will increase by $49 a month, from $1,927 to $1,976, starting in January, according to the Social Security Administration (SSA). It’s the lowest COLA in four years, reflecting a return to pre-pandemic inflation trends. The average COLA since 2000 has been about 2.6 percent, even factoring in the spike in consumer prices that produced benefit increases of 5.9 percent in 2022 and 8.7 percent in 2023. The COLA is applied to all Social Security payments — survivor benefits, family benefits and disability benefits, as well as retirement benefits — and to Supplemental Security Income (SSI), a monthly benefit administered by the SSA for people with low incomes and limited assets who are 65 or older, blind or have a disability. 2. MEDICARE PREMIUMS The standard monthly premium for Medicare Part B, which covers doctor visits and other outpatient treatment, goes up from $174.70 to $185 in January. Most Medicare enrollees pay this standard rate, typically as a deduction from their Social Security payments, so the premium increase has the effect of partially offsetting the COLA, by $10.30 a month. 3. SERVICE AT SOCIAL SECURITY OFFICES Since April 2022, when local Social Security offices reopened after two years of pandemic restrictions, the SSA has been recommending customers seeking in-person help call ahead rather than dropping in. In 2025, that recommendation becomes a requirement in most situations. MOST POPULAR health WHAT YOUR BLOOD TYPE SAYS ABOUT YOUR HEALTH Knowing your type could give clues to your risk of stroke and heart attack Members Only money AMAZON WON'T LET YOU RETURN THESE 13 ITEMS Before you purchase that gift, make sure you can return it. Members Only content AMAZON WON'T LET YOU RETURN THESE 13 ITEMS Before you purchase that gift, make sure you can return it. Members Only content BEST THINGS TO BUY IN DECEMBER 2024 Look for bargains on electronics, apparel, sporting goods and more Members Only Members Only ARTICLE CONTINUES AFTER ADVERTISEMENT Starting Jan. 6, “we will require customers to schedule an appointment for service in our field offices, including requests for Social Security cards,” Dawn Bystry, SSA associate commissioner in the Office of Strategic and Digital Communications, wrote in a Nov. 13 message emailed to advocacy groups and posted on the agency’s website. The aim is to “reduce wait times, streamline service delivery and improve the overall customer experience” at its 1,200-plus field offices, Bystry said, adding that several hundred offices have already made the transition and “seen significant improvements in wait times.” Members only Magazines & Resources AARP Members Edition™ Smart Guides Tips, tricks and trends for smarter living Members only To schedule an office visit, call the SSA’s national help line at 800-772-1213 or contact your local office. You can also access many SSA services online, if you have a My Social Security account, or by phone. The appointment edict is not absolute. Bystry said offices “will not turn people away for service who are unable to make an appointment or do not want to make an appointment. For example, members of vulnerable populations, military personnel, people with terminal illnesses and individuals with other situations requiring immediate or specialized attention may still walk in for service at our field offices.” 4. FULL RETIREMENT AGE Full retirement age, or FRA, is the age at which you become eligible to claim 100 percent of the retirement benefit calculated from your lifetime earnings. For the past several years it has been going up two months at a time, based on year of birth. SOCIAL SECURITY FOR DUMMIES: GET THE BENEFITS YOU'VE EARNED Check out the newly updated Social Security for Dummies from AARP Books! Social Security for Dummies simplifies the complex Social Security system with clear, jargon-free language and instructions to help you figure out when to start taking your benefits based on your unique situation and goals. FRA is 66 years and 8 months for people born in 1958 and 66 and 10 months for those born in 1959; people born May 2, 1958, through Feb. 28, 1959, will reach it in 2025. (Under current law, it will settle at 67 for people born in 1960 and afterward.) You can start collecting retirement benefits before FRA — the minimum age is 62 — but your monthly payment will be permanently reduced, by as much as 30 percent. You can also wait past FRA and reap Social Security's bonus for delaying benefits: an extra 8 percent a year until age 70, when you can claim your maximum benefit. 5. SOCIAL SECURITY TAXES Social Security is primarily funded by a 12.4 percent tax on most workers’ earnings. If you earn wages, you pay 6.2 percent (through FICA withholding from your paycheck) and your employer pays 6.2 percent. Self-employed people pay both shares as part of their annual tax return. AARP NEWSLETTERS Get The Daily for news that matters The latest in health, money, entertainment, jobs, and travel each weekday! Subscribe See All Newsletters Privacy Policy ARTICLE CONTINUES AFTER ADVERTISEMENT The rate has not changed since 1990, but the amount of income subject to it is adjusted annually to reflect national wage trends. In 2025, you’ll pay the tax on work income up to $176,100 (up from $168,600 in 2024). Earnings above that threshold are not taxed for the purpose of funding Social Security, nor is any income from investments. 6. SOCIAL SECURITY EARNINGS TEST Social Security applies an earnings test to beneficiaries who have not yet reached full retirement age. People who collect retirement, survivor or family benefits before reaching that milestone and continue to work may temporarily lose a share of their Social Security benefits if their earnings exceed a certain level. That threshold changes annually, tracking wage trends. In 2025, beneficiaries who will not reach FRA until a later year have $1 withheld from their Social Security payment for every $2 in work income above $23,400 (up from $22,320 in 2024). For example, if you earn $40,000 from work in 2025, your benefits for the year would be reduced by $8,300 — half the difference between $23,400 and $40,000. The earnings test eases in the year you reach FRA: Social Security holds back $1 in benefits for every $3 in earnings above $62,160 (up from $59,520 in 2024) until the month when you hit the milestone. At that point, the test goes away: There’s no longer any benefit deduction, no matter how much you earn, and the SSA adjusts your monthly payment upward so that, over time, you recoup the prior withholding. There are different income rules for people receiving Social Security Disability Insurance (SSDI). Because disability benefits are intended for people who are largely unable to work for an extended period due to a serious medical condition, you can lose them if your earnings reflect what the SSA calls “substantial gainful activity.” In 2025, that threshold is $1,620 a month for most SSDI beneficiaries, a $70 increase from 2024. People receiving SSDI on the basis of blindness are subject to a higher income limit: $2,700 a month in 2025, $110 more than in 2024. 7. QUALIFYING FOR BENEFITS The first step in qualifying for Social Security retirement benefits is having at least 40 Social Security credits. You earn credits, or “quarters of coverage” in SSA parlance, by doing work in which you pay Social Security taxes on your income. You can earn up to four credits a year, so most workers reach the eligibility threshold after 10 years in the labor force. In 2025, you earn one credit for earnings of $1,810 ($80 more than the 2024 level), so you bank your maximum of four credits when your work income for the year reaches $7,240. %{postComment}% Andy Markowitz is an AARP senior writer and editor covering Social Security and retirement. He is a former editor of the Prague Post and Baltimore City Paper. Unlock Access to AARP Members Edition Join AARP to Continue Already a Member? Login AARP Membership — $12 for your first year when you sign up for Automatic Renewal Join AARP today for $16 per year. Get instant access to members-only products and hundreds of discounts, a free second membership, and a subscription to AARP The Magazine. Join AARP More From AARP MEMBERS ONLY My Biggest Retirement Mistake: Collecting Social Security Early Claiming benefits at the minimum age can shore up cash flow but comes with a cost MEMBERS ONLY 8 things you didn't know Social Security could do for you Surprising, useful services beyond monthly checks Social Security Trustees Project Fund Shortfall in 2035 Benefits would be cut by 17% without action by Congress { "maxItems":3, "itemsPerRow":"3", "rows":"4", "loadMore":"6", "adsNum":"0", "resultsLength":"3" } MOST POPULAR health WHAT YOUR BLOOD TYPE SAYS ABOUT YOUR HEALTH Knowing your type could give clues to your risk of stroke and heart attack Members Only money AMAZON WON'T LET YOU RETURN THESE 13 ITEMS Before you purchase that gift, make sure you can return it. Members Only content AMAZON WON'T LET YOU RETURN THESE 13 ITEMS Before you purchase that gift, make sure you can return it. Members Only content BEST THINGS TO BUY IN DECEMBER 2024 Look for bargains on electronics, apparel, sporting goods and more Members Only Members Only AARP NEWSLETTERS Get The Daily for news that matters The latest in health, money, entertainment, jobs, and travel each weekday! Subscribe See All Newsletters Privacy Policy RECOMMENDED FOR YOU Members only paid-content 4 WAYS TO HELP PROTECT YOUR HEARING Learn how to address hearing issues to help stay healthier Members only podcasts DOG HOSPICE TARGETED BY FAKE BANK TEXTS Managers receive a text message appearing to be from their bank, but it’s actually a fraud attempt Members only health DRIED PARSLEY MAY POSE SALMONELLA RISK Recalled brands sold in all 50 states Members only entertainment SETH MACFARLANE'S (NEARLY) SECRET SINGING TALENT The famed comic director and actor is crazy about the classics Members only ARTICLE CONTINUES AFTER ADVERTISEMENT CONVERSATION Follow this conversation to be notified when new comments are posted follow Log in | Register All Comments 178 NEWEST 0 ALL COMMENTS 1. COMMENT BY ALLEND158612. Al AllenD158612 18 hrs ago as a newbie to crypto i lost alot of money, I would like to express my gratitude to Expert Bernie Doran for their exceptional assistance in recovering my funds from a forex broker. Their expertise and professionalism in navigating the complex process were truly commendable. Through their guidance and relentless efforts, I was able to successfully retrieve my funds of $150,000 providing me with much-needed relief. I highly recommend him on Gmail Berniedoransignals@gmailcom to anyone facing similar challenges, as their dedication and commitment to helping clients are truly impressive. Thank you, Bernie doran, for your invaluable support in resolving this matter reply 1 share report 0 0 older replies show older replies 2. COMMENT BY SUZANNEF931191. Su SuzanneF931191 1 day ago I am a retired teacher in Texas. My income is solely from Teacher Retirement System. COLA is very rare so does not keep up with the increases in Medicare premiums that I pay reply 1 reply 1 share report 0 0 older replies show older replies * REPLY BY ERICF410684. Er EricF410684 1 day ago Reply to SuzanneF931191 You probably missed the chance to use the graded option of TIAA annuities -- which are invested in very safe, but low return, instruments. Graded means you only turn on a portion of your accumulation and leave part of it to keep growing. So you start with a lower payout, but a number of years later it is growing beyond the fixed return option. reply 1 share report 3. COMMENT BY HENRYH934961. He HenryH934961 1 day ago Once MAGA takes over the government next month, they will immediately set to work on finishing what they have been working on since 1935 when FDR gave us social security - the end of social security. With that out of the way, they can then concentrate more effort on eliminating the other thing that FDR's New Deal gave us ... health insurance. Nice goin' magats! reply 10 replies 21 share report 8 8 older replies show older replies * REPLY BY DAVIDM456515. Da DavidM456515 17 hrs ago Reply to Not even close. I reached FRA a few years back and my wife and I both rely on social security. I'm unaffiliated with any party, but I did vote more Republican than Democrat this election. In the last 50 plus years since my legal voting age, I've been about half and half party wise. I just strongly believe that parties have to learn to work together. This means instead of trying to keep undoing what the other party has done. reply 3 share report * REPLY BY DAVIDM456515. Da DavidM456515 16 hrs ago Reply to EPT92 You're 100 % correct about kicking the can down the road. Congress has never been good about being proactive. They will probably work on a solution when the fund runs dry. reply 0 share report 4. COMMENT BY RICHARDR775045. Ri RichardR775045 1 day ago I wonder how many other people who read this article learned, as I did, that my social security income is a below average amount. I worked from the time I was 16 until 70. Rather depressing. reply 10 replies 9 share report 8 8 older replies show older replies * REPLY BY EPT92. EP EPT92 18 hrs ago Reply to DavidM456515 So true! I started paying attention to how my possible benefit was growing when I was 45. That was the year I got my first statement from SS showing all my earnings and the benefit projected for me at age 62, full retirement age and at 70. My son just turned 50. Every time I ask him about what he knows about his possible SS benefit or even his teamsters pension, he just shrugs his shoulder. At least I finally got him to dig into his information about his pension. reply 0 share report * REPLY BY DOCMYERS. do docmyers 6 hrs ago Reply to RichardR775045 Even after 7 years of corporate layoffs with zero income, other than unemployment income, my Soc. Sec benefits are substantially more than the average amount. I'm pleased with Soc. Sec and the excellent retirement benefits it provides. reply 0 share report 5. COMMENT BY JOSEPHG946489. Jo JosephG946489 1 day ago Professional athletes CEOs and the like make millions of dollars a year and only have SS deductions taken from the first $176,100 Raide that amount and the social security fund will be in better shape and things will be more equitable! reply 2 replies 27 share report 0 0 older replies show older replies * REPLY BY APAUL50. ap apaul50 1 day ago Reply to JosephG946489 Yes, I've often thought this too. Even if only the individual's 6.2% was collected on these folks, it would still be plenty to keep things solvent probably forever. reply 7 share report * REPLY BY TIMINKC. Ti TimInKC 23 hrs ago Reply to JosephG946489 Nope. The SSA and CBO have done studies showing that it wouldn't do much to extend solvency. Professional athletes, musicians and actors are 1% because the 99% keeps buying their tickets, albums, T-shirts, etc. reply 1 share report Load more comments Powered by { "articlePagePath" :"/content/aarpe/en/home/retirement/social-security/info-2024/social-security-changes-2025", "aarpId" : "6e0b4eac7cebbeb7b01b9ae9cbbc18ee" "customContainerId" : "" "limit" : "5" "paginationLimit" : "5" "replyLimit" : "2" "paginationReplyLimit" : "5" "sort" : "" "featuredTabActiveThreshold" : "5" } BENEFITS RECOMMENDED FOR YOU See All Members only Magazines & Resources AARP Members Edition™ Guides, entertainment, tips and other exclusive stories Members only Travel AARP Destination Guides Exclusive guides to popular cities in the U.S. and around the globe Members only Insurance AARP Life Insurance Options from New York Life Customized plans to supplement your retirement savings Members only Travel Grand European Travel: Rail & Tours Up to $100 off worldwide guided tours See All Members only HOT DEALS SAVE MONEY WITH THESE LIMITED-TIME OFFERS See All Hot Deals AARP is a nonprofit, nonpartisan organization that empowers people to choose how they live as they age. 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