What’s Changing With Social Security in 2025

Next year brings several updates to Social Security that will affect millions of Americans. Monthly benefits are set to rise by 2.5%, with the average retiree payment increasing from $1,927 to $1,976. This adjustment helps beneficiaries keep up with the rising cost of living.

The rules around earnings and retirement are also shifting. The maximum amount of income subject to Social Security taxes rises to $176,100, and the full retirement age for those born in 1959 will be 66 years and 10 months. These changes influence when people can claim full benefits and how much they can earn while working.

Supplemental Security Income (SSI) and disability benefits are getting boosts as well. Individual SSI payments increase to $967 per month, and disability thresholds are updated to support those who rely on these programs.

One of the biggest changes comes from the Social Security Fairness Act, which eliminates the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). This restores full benefits for millions of public-sector retirees, including teachers, firefighters, and police officers, with retroactive payments starting in January 2024.

The SSA is also modernizing operations. Paper checks will be phased out by September 2025, and most benefits will require online or in-person applications. While these updates offer important relief, the Social Security trust fund still faces long-term challenges, with potential benefit reductions projected by 2033–2035 if no further action is taken.