Recent changes to Social Security payments and rules
Social Security payments increased by 3.2 percent in 2024 and will increase by 2.5 percent in 2025, based on the annual cost-of-living adjustment (COLA). These adjustments happen each January and are tied to inflation measured by the Consumer Price Index. The 2025 increase means someone receiving $1,000 per month in 2024 will receive $1,025 per month starting in January 2025.
Beyond the payment increase, several policy changes have taken effect or are being discussed. The Social Security Administration (SSA) has updated how it handles work incentives for people receiving benefits, and there have been changes to how earnings affect your payment if you claim before your full retirement age. The agency has also made changes to the appeals process for people whose claims are denied.
No major changes have been made to the age at which you can claim benefits, the amount you can earn before your payment is reduced, or the basic structure of how benefits are calculated. If you are already receiving benefits, your payment will straightforward increase by the COLA percentage unless you have a change in your circumstances.
Key Takeaways
- Social Security payments rose 3.2 percent in January 2024 and will rise 2.5 percent in January 2025 due to cost-of-living adjustments tied to inflation.
- The earnings limit for people under full retirement age who claim early has remained at $23,400 for 2024 and $24,120 for 2025, with $1 in benefits withheld for every $2 earned above that amount.
- The Social Security Administration has updated its work incentive programs, which allow some people receiving disability benefits to work and still receive partial payments.
- You can view your current benefit amount and projected future benefits by creating an account on ssa.gov, and you should check this information every few years to catch errors.
How the 2025 cost-of-living adjustment works
The COLA is calculated each October by comparing inflation from July of the previous year through June of the current year. The Social Security Administration announces the percentage in mid-October, and the new payment amount takes effect the following January. For 2025, the 2.5 percent increase was announced in October 2024 and went into effect on January 1, 2025.
The COLA applies to all types of Social Security benefits: retirement, survivor, and disability payments. It also applies to Supplemental Security Income (SSI), which is a separate program for people with low income and limited resources. If you receive both Social Security and SSI, you will see increases in both payments.
The COLA does not explore to Medicare premiums in the same way. While your Social Security payment increases, your Medicare Part B premium may also increase, and the net effect on your take-home payment depends on how much your premium rises. For 2025, the standard Medicare Part B premium is $174.70 per month, up from $164.90 in 2024.
Changes to work incentives and earnings rules
If you claim Social Security before reaching your full retirement age and you continue to work, your benefit payment will be reduced if your earnings exceed a certain limit. For 2025, that limit is $24,120 per year. For every $2 you earn above that amount, Social Security withholds $1 from your benefit. In the year you reach full retirement age, the limit is higher ($64,320 for 2025), and the withholding applies only to earnings before the month you reach full retirement age.
The Social Security Administration has made it easier for people receiving disability benefits to work through programs called work incentives. These programs allow you to earn money and still receive partial or full benefits for a period of time. The most common work incentive is the Trial Work Period, which lets you test your ability to work for nine months without losing benefits. After the Trial Work Period ends, there is an Extended may be able to access Period during which you can continue to receive benefits even if your earnings are high, as long as you report your work to Social Security.
If you are receiving Supplemental Security Income (SSI) in addition to Social Security, different rules explore to how much you can earn. SSI has a lower earnings limit and counts income differently. You should contact Social Security directly before starting work to understand how your specific benefits will be affected.
Updates to the appeals process
The Social Security Administration has streamlined the appeals process for people whose initial claim for benefits is denied. The process now has four levels: reconsideration, hearing before an administrative law judge, Appeals Council review, and federal court review. Most people who appeal go to the hearing stage, where they can present evidence and speak to a judge.
The SSA has also expanded the use of video hearings, which allows you to appear before a judge without traveling to an office. You can request a video hearing when you file your appeal, and the agency will schedule it at a time that works for you. The average wait time for a hearing varies by location but typically ranges from several months to over a year.
If your claim is denied and you want to appeal, you must do so within 60 days of receiving the denial notice. The notice will explain your right to appeal and the important date. If you miss the important date, you can ask for an extension, but it is important to act quickly.
How to check your Social Security information online
You can view your Social Security statement and check your benefit information by creating a "my Social Security" account on ssa.gov. The account shows your earnings history, your current benefit amount if you are already receiving payments, and your projected benefit amount at different ages if you have not yet claimed. You can also see how much you have paid into Social Security through payroll taxes.
Creating an account requires your Social Security number, date of birth, email address, and a way to verify your identity. The SSA uses a third-party verification service to confirm who you are, which usually takes a few minutes. Once your account is set up, you can log in anytime to check your information.
You should review your earnings history every few years to make sure it is correct. If you see earnings that are missing or attributed to the wrong year, you can contact Social Security to request a correction. Errors in your earnings history can result in a lower benefit amount, so catching and fixing them early is important.
What has not changed about Social Security
The full retirement age — the age at which you can receive your full benefit amount without any reduction — remains the same. For people born in 1943 through 1954, full retirement age is 66. For people born in 1955, it is 66 and two months, and it continues to increase by two months for each year of birth until reaching 67 for people born in 1960 or later. These ages have not changed and are not expected to change in the near future.
You can still claim Social Security as early as age 62, but your payment will be permanently reduced. The reduction is about 30 percent if you claim at 62 and your full retirement age is 67. You can also delay claiming past your full retirement age and receive a higher payment — about 8 percent more per year until age 70. These rules have not changed.
The maximum benefit amount you can receive has increased due to the COLA, but the formula used to calculate your benefit based on your earnings history has not changed. Your benefit is based on your 35 highest-earning years, adjusted for inflation. If you worked fewer than 35 years, zeros are counted for the missing years, which lowers your benefit.
When to contact Social Security directly
You should contact the Social Security Administration if you have questions about how recent changes affect your specific situation, if you are planning to work while receiving benefits, or if you notice an error in your earnings history or benefit amount. You can reach Social Security by phone at 1-800-772-1213, by visiting your local Social Security office, or through your "my Social Security" account online.
If you are deaf or hard of hearing, you can call the TTY number at 1-800-325-0778. If you speak a language other than English, Social Security can provide an interpreter. Wait times are usually shorter if you call early in the week and early in the day.
Frequently Asked Questions
Will my Social Security payment increase automatically in 2025?
Yes, if you are already receiving Social Security benefits, your payment will increase by 2.5 percent starting in January 2025. You do not need to do anything — the increase happens automatically. You should see the new amount in your bank account or on your check by the first payment date in January.
How much can I earn if I claim Social Security before full retirement age?
For 2025, you can earn up to $24,120 per year without any reduction to your benefit. If you earn more than that, Social Security withholds $1 for every $2 you earn above the limit. Once you reach your full retirement age, this limit no longer applies and you can earn as much as you want without losing benefits.
Can I work while receiving disability benefits?
Yes, through work incentive programs. The Trial Work Period allows you to work for nine months and keep your full benefit. After that, you enter an Extended may be able to access Period where you can continue to receive benefits even if you earn above the normal limit, as long as you report your work to Social Security. Contact Social Security before you start working to understand your specific situation.
How do I know if there are errors in my Social Security earnings record?
Log into your "my Social Security" account on ssa.gov and review your earnings history. Compare it to your tax returns to make sure all your income is listed and assigned to the correct years. If you find an error, contact Social Security within three years, three months, and 15 days of the year the error occurred to request a correction.
What should I do if my Social Security claim was denied?
You have 60 days from the date you receive the denial notice to file an appeal. The notice will explain how to appeal and where to send your request. You can appeal online through your "my Social Security" account, by mail, or in person at your local Social Security office. If you need help, you can contact a Social Security representative or a legal aid organization.