The SSA department offers monthly benefits to over a million vulnerable Americans, which include retirees, survivors, and disabled individuals. The Social Security Administration ensures that all eligible beneficiaries receive their monthly benefits on the scheduled date without any delays. But over the year, the agency implemented several notable changes, one of them is the Social Security Fairness Act, that have been officially signed into law in January.
Major Social Security Changes Are Coming
At the start of 2025, President Donald Trump’s Department of Government Efficiency (DOGE) made several cuts to the agency. The department announced that they were planning to reduce the workforce by about 12% which is up to 7,000 workers, by the late 2025 financial year. Lately, an additional 1000 workers have also been reassigned. Following this, Frank Bisgnano had been appointed as SSA commissioner, and he had instructed employees to focus on the SSFA cases and also offered them overtime if they worked on weekends to complete the SSFA claims.
Another notable change is consistently faced by the social security beneficiaries, which is the annual COLA adjustments that result in to increase in benefit amount to cope with the effect of rising inflation. The agency will soon announce the percentage of COLA by which the benefits will rise for next year in October. The eligible beneficiaries may also notice that they owe more in taxes soon due to the changes made to the wage limit as well. Here is everything that you need to understand.
Millions will be impacted by Social Security changes – Overview
| Article On | Major Social Security Changes Are Coming: Here’s What You Should Do to Protect Your Benefits |
| Country | United States |
| Department | Social Security Administration |
| Beneficiaries | Eligible U.S. Retirees |
| Payment Frequency | Monthly |
| Category | Financial Aid |
| Official Website | ssa.gov |
Upcoming Social Security Cost of Living Adjustment
The benefits of social security are predetermined, fixed income, and as such, in the face of rising inflation, the families of beneficiaries faced financial burden, mainly if they are fully reliant on the social security benefits to cover their daily expenses. To address these potential challenges, SSA adjusts all the benefit amounts according to inflation.
It is estimated that millions of vulnerable beneficiaries who fulfilled the eligibility criteria will receive a rise in their monthly benefits based on the rising inflation. The measure of inflation is based on the CPI-W, the Consumer Price Index for Urban Wage Earners and Clerical Workers, which is mainly computed in the third quarter of the year. Since we are in the third quarter, the estimation for the upcoming COLA has become more accurate. The 2025 COLA is projected to be about 2.5%, indicating a slight decline in inflation. The official release for the 2026 adjustment is due in October.
The Senior Citizens’ League has estimated a COLA of 2.6% based on June data, while the recent reports signify the rising cost of many things, such as food, housing, and other benefits, estimate a COLA of 2.7%.
However, due to the increase in Medicare Part B premiums, the COLA adjustments may get lost in new additional costs for many seniors.
Working as a Beneficiary
The SSA determines your benefit level based on how much you earn, so the more you earn, the greater your benefit level will be. Social Security earnings test deducts benefits from certain seniors if they accept checks and work. This only affects people younger than full retirement age (FRA). The FRA is now 67 for most retirees in the U.S. Individuals who are working while collecting benefits before reaching the FRA are subject to income limits.
- In 2025, you stand to lose $1 of annual benefits for each $2 that you earn above $23,400 if you’re below the FRA throughout the year. Those who turn FRA in 2025 may earn $62,160 before a dollar is withheld for each $3 earned above that figure, provided that’s what you’ve earned before your birthday. The levels were lower in earlier years.
- Fortunately, money taken away from earnings by the earnings test returns to you when you achieve your FRA. The good news is that these changes will be implemented in the upcoming year, so there is still time if retirees are strategic about it to better maximize their monthly benefits.
- The government adds to your benefit at this point to compensate you for what it took away beforehand. If you will be turning your FRA this year, you can expect an increase to your benefit; however, possibly be one month after your birthday.
- Parallel to this, about the current workforce, the maximum taxable earnings limit is adjusted annually. For example, it was $168,600 in 2024 and is $176,100 in 2025. And this limit is set to increase more for the year 2026.
Frequently Asked Questions
What is the new Full Retirement Age (FRA)?
The FRA is 67 for those born in 1960 or later. The 100% retirement benefits that eligible retirees get upon attaining a specific age under the Social Security Benefits program are referred to as the Full Retirement Age (FRA).
Can Social Security benefits still be claimed early?
Yes, benefits can be claimed starting at 62, but they are permanently reduced.
What if someone works while receiving benefits?
Earnings above a certain limit ($23,400 in 2025 before FRA) may reduce benefits.
Do applicants need to verify their identity in person now?
Certain applicants (new applicants and those making major changes) might need to verify in person, especially if online verification fails.
How can someone check their Social Security information?
Visit the official Social Security website or call their automated services at 1-800-772-1213.
