If you haven’t kept up with the news, you may wonder about the Social Security benefits increase in 2025. Recent government action has led to significant changes in the Social Security program. The Social Security Fairness Act went into effect in January 2025 and promises to increase benefits for millions of Americans. If you receive or plan on receiving Social Security, you should stay informed on these and other important developments.
Social Security Fairness Act: What It Means for You
The last administration signed an important act known as the Social Security Fairness Act that expanded Social Security benefits for 3 million retired public employees. Under the old model, many public servants were effectively penalized for having pension plans.
Positions like teachers, police officers, firefighters, and other government workers who paid into pension programs were denied significant portions of Social Security benefits when they became eligible for Social Security. The bill that had bipartisan support repealed standing provisions like the Windfall Elimination Provision (WEP) that had historically reduced or even eliminated benefits for people who had retirement pensions.
For many people who had previously had their benefits reduced or eliminated, the act means that they now receive hundreds of dollars of additional Social Security benefits every month. Surviving spouses could receive significantly more as a result of the act that went into effect in January.
Social Security Announces 2.5% Benefit Increase for 2025
The Social Security Administration (SSA) announced a 2.5% cost-of-living adjustment for this year. The increase aims to keep important benefits ahead of inflation. While it is a smaller increase than in past years, the inflation rate has also lowered. Individuals who receive Social Security income saw their monthly payments increase as of January 2025. The adjustment went into effect at that time. Eligible couples also saw their Social Security income increase as well.
SSDI and SSI Benefits Increase in 2025
Starting in January 2025, Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) beneficiaries saw a 2.5% cost-of-living adjustment to help offset inflation. This increase is to make sure that the people who receive this form of financial assistance have the purchasing power they need to pay for basic necessities as living expenses rise.
According to the SSA, the Social Security disability threshold for non-blind individuals went from $1,550/month in 2024 to $1,620/month in 2025. For blind individuals, the threshold went from $2,590/month last year to $2,700/month this year.
Strategies for Retirees to Manage Their Expenses
Recipients of Social Security benefits in North Carolina continue to face challenges due to inflation and high cost of living factors, particularly if they live in large cities. Retirees can adopt practical financial strategies to make the most of their benefits. This can include creating a detailed budget. Having your finances planned out ahead of time can prevent you from overspending. A detailed budget can help you track spending. It can also help you identify areas where you can cut costs.
You may not have thought about certain expenses until you analyze your budget. Cutting unused subscriptions is just one example of creative cost-cutting. It can also help to explore what types of senior discounts you might be eligible for. Groceries and transportation options often offer assistance for seniors.
If you haven’t considered downsizing your house or relocating to a more affordable part of the country, those steps might free up cash and help you cut down on a wide range of costs. You should also review your Medicare plan carefully to make sure it works well for you. If you are using medications, you can ask your doctor about switching to generic medications that provide the same benefits but reduce your out-of-pocket expenses.
FAQs
Q: How Much Is Social Security Going to Rise in 2025?
A: Social Security benefits increased by 2.5% as of January 2025 as a result of the yearly cost-of-living adjustment (COLA) that accounts for inflation. This means the average monthly retirement benefit rose from $1,927 to $1,976, while SSI recipients saw payments increase to $967 for individuals and $1,450 for couples, starting in January 2025.
Q: Is Social Security Going Taxed in 2025?
A: Yes, Social Security benefits are still taxed if incomes exceed certain thresholds. The taxability depends on your income, other wages you earn, the status of your retirement accounts, and other potential factors. You might have heard about potential changes to the taxing structure of Social Security income, but there are no current plans to change how Social Security is taxed.
Q: What Is the New Law for Social Security in 2025?
A: The new law for Social Security in 2025 is known as the Social Security Fairness Act. Under the act, millions of people who worked in the public sector now gain important benefits. Previously, having a government pension plan meant that many workers were not able to secure Social Security benefits. This is no longer the case.
Q: Were There Changes to Social Security Disability Benefits?
A: Yes. Social Security benefits for disabled individuals also went up this year due to cost-of-living adjustments that raised benefits across the board. This adjustment is meant to help retired and disabled individuals keep up with inflation and the higher cost of living. The exact percentage that disability benefits went up is 2.5%. If you have questions about how this increase will affect you, you can consult with an attorney who handles Social Security cases.
Schedule Your Social Security Benefits Consultation Today
Social Security benefits are adjusted on an annual basis. There are also frequent legislative actions that can impact your benefits. If you have questions about your benefits or want to learn more about federal disability benefits, we’re here to help. We enjoy helping our clients learn about how Social Security supplemental income and disability benefits could help them.
Legal Counsel Helps With Complicated Process
The application process for these programs is complicated, which is why having legal representation is critical. Don’t delay learning about these important benefits. Contact Bridgman Gantt Law Offices today to schedule your no-cost initial consultation.
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