The Social Security Administration (SSA) has announced important updates for 2025, including a 2.5% Cost-of-Living Adjustment (COLA) for Social Security and Supplemental Security Income (SSI) beneficiaries. This increase, based on the rise in the Consumer Price Index from Q3 2023 to Q3 2024, means beneficiaries can expect their new benefit amounts starting in January.

Key Social Security Changes for 2025

Here’s a breakdown of the most significant changes:

1. COLA Increase: Monthly Social Security benefits will increase by 2.5%.
   • For example, the average monthly benefit for all retired workers will increase from $1,927 to $1,976.
   • An aged couple receiving benefits will see their payment increase from $3,014 to $3,089.
2. Maximum Taxable Earnings:
   • Social Security (OASDI only): Increased from $168,600 in 2024 to $176,100 in 2025.
   • Medicare: Remains unlimited, with no maximum taxable amount.
3. Earnings Test Exempt Amounts:
   • Under Full Retirement Age: Increased to $23,400 per year ($1,950/month), with $1 withheld for every $2 earned over the limit.
   • Year of Full Retirement Age: The exempt amount increases to $62,160 annually ($5,180/month), with $1 withheld for every $3 earned over the limit until reaching full retirement age.
4. Disability Thresholds:
   • Substantial Gainful Activity (SGA):
     • Non-blind: Increased from $1,550/month to $1,620/month.
     • Blind: Increased from $2,590/month to $2,700/month.
   • Trial Work Period: Increased to $1,160/month.
5. SSI Federal Payment Standards:
   • Individual: Increased from $943 to $967 per month.
   • Couple: Increased from $1,415 to $1,450 per month.
6. SSI Student Exclusion:
   • Monthly limit: Increased to $2,350.
   • Annual limit: Increased to $9,460.

Notifications of New Benefit Amounts

Beginning in early December, beneficiaries will receive notifications of their updated benefits by mail. This year, the SSA has introduced a redesigned, simplified COLA notice to make it easier for beneficiaries to understand their benefits. The new one-page format provides personalized, plain-language explanations with exact benefit amounts and relevant dates.

For those with a My Social Security account, the COLA notice will be available to view online, providing a faster and more secure way to access this information. Online users can also opt for text or email alerts when new messages, like the COLA notice, are ready. To view the 2025 COLA notice online, beneficiaries must create a My Social Security account by November 20, 2024. For more information or to get started, visit www.ssa.gov/myaccount.

2025 Social Security Changes Fact Sheet