2 Social Security Changes Taking Effect in May 2025

Even though Social Security has been around for a very long time, the program tends to undergo changes every year. Usually, those changes are implemented in January. And this year was no exception.

At the start of 2025, seniors on Social Security saw their monthly benefits increase 2.5%. That cost-of-living adjustment was actually a big disappointment for retirees who were hoping for more money, especially since it was the smallest raise to arrive in years.

But thankfully, inflation has cooled a bit since the start of the year. So that raise may be helping seniors to some degree.

At the beginning of 2025, Social Security’s earnings-test limits also rose. This now gives seniors who work and collect benefits at the same time an opportunity to earn more money without risking having some of their Social Security withheld.

Social Security’s wage cap also rose at the start of the year. Now, higher earners are forced to pay taxes on more of their income to fund the program.

The value of a single Social Security work credit also rose. This means it’s technically harder to qualify for benefits, though for full-time employees, this change will probably go unnoticed.

But there are a couple of Social Security changes that seniors may not experience firsthand until the month of May. Here are two big ones to keep on your radar.

1. Benefits increase for some recipients

For years, certain Social Security recipients saw their monthly benefits whittled down thanks to the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). These provisions impacted an estimated 3.2 million beneficiaries.

Thanks to the Social Security Fairness Act, which repeals the WEP and GPO, many Social Security recipients could see their monthly benefits increase. Some beneficiaries may have already seen this happen in April. But the Social Security Administration is still processing changes, so it may be that you’re still in line for an increase.

Also, many Social Security recipients are eligible for a one-time retroactive payment as part of the Social Security Fairness Act. But the Social Security Administration (SSA) hasn’t made all of those payments yet. So if you didn’t get yours yet and are eligible, that money may come in May.

2. Applicants may have to jump through more hoops to get benefits

The SSA is implementing stricter procedures to verify benefit claims. Part of the reason may be that the agency has come under scrutiny for wasteful spending and is trying to avoid fraud.

Now, if you want to apply for benefits, you can no longer verify your identity over the phone. You can either use the agency’s online service or go into your local Social Security office.

Of course, this change comes at a time when Social Security office closures are being announced. So you may want to set up an online account to make the process easier.

Just because we’re well into 2025 doesn’t mean Social Security isn’t going through changes. Be on the lookout for more updates to the program as 2025 moves along.

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