The start of 2025 brings a series of significant changes for Social Security and Supplemental Security Income (SSI) beneficiaries. These adjustments, which include a 2.5% increase in payments and modifications to earnings limits, affect millions of Americans and seek to adapt to current economic demands.
The annual cost of living adjustment (COLA) is one of the main changes. In 2025, beneficiaries will receive a 2.5% increase, which represents an increase in their checks throughout the year. This increase, however, is the lowest since 2022, when the COLA reached a whooping 8.7%.
For those receiving SSI, the new maximum monthly payment level is $967, up from $943 set last year. The first SSI payment for 2025 was already made on December 31 due to the January 1 holiday.
Impact on full retirement age (FRA)
The full retirement age (FRA) also faces changes this year. Those born in 1959 now have an FRA of 66 years and 10 months. Those who claim benefits before this age could see their payments reduced by up to 30%. On the other hand, those who choose to wait until age 70 will receive the maximum amount allowed.
Starting in 2026, the FRA will increase to 67 years for those born in 1960 and later, marking a key change for the next generations of beneficiaries.
Modifications to income limits you should consider now
Earning limits for those working while receiving benefits have also changed. In 2025, FRA minors can earn up to $23,400 before $1 for every $2 earned above the limit is withheld. This amount increased from $22,320 in 2024.
For those who reach FRA in 2025, the limit is now $62,160, up from $59,520 last year. In this case, $1 will be withheld for every $3 earned above the limit.
Maximum payments for Supplemental Security Income also increased
Starting January 2025, SSi benefit payments will also increase, following the 2.5% COLA increase. For starters, an individual beneficiary without a partner can expect to receive up to $967 per month, while a qualifying couple can receive up to $1,450.
Finally, beneficiaries who need an essential person to help them with their daily tasks can receive an SSI subsidy of up to $484 per month. Remember that these are the maximum amounts, and qualifying for them has different requirements. Review them before applying: they are available on the official website of the Social Security Administration (SSA), at this link: https://www.ssa.gov/ssi.
