Because of new information, the Social Security Administration has again said that there will be big changes in 2025.
The federal agency says that at the start of 2025, they will make big changes to help their recipients deal with rising prices and offer competitive wages.
One of the biggest changes that will happen in 2025 is that the taxable maximum will go up. It is currently $168,600 a year, but it will go up to help taxpayers.
The most money an employee makes each month is called the “taxable maximum.” In 2025, no taxes will be taken out of any earnings that are less than this amount. This is the amount of money that qualifies for payroll taxes each year.
Social Security’s new change will affect retirees in 2025
According to Social Security, the highest amount of money that will be taxed each year will be $176,100 starting January 1, 2025. Any money received above this amount must be recorded, and only money up to this amount will be paid out.
The SSA also said that this amount is raised every year to keep up with gains in average pay. As long as you make more than the Medicare tax, you will have to pay it on all of your income. Also, big changes are coming to Social Security next year.
For example, the cost of living adjustment (COLA) will go up to 2.5% for all recipients under the Administration.
Because of this yearly increase, here are all the new payment amounts that retirees, survivors, disabled people, and people who get Supplemental Security Income (SSI) can get.
| Retirement benefits (Plus 2.5%) | Survivor benefits (Plus 2.5%) | SSDI benefits (Plus 2.5%) | SSI benefits (Plus 2.5%) |
| On average: $1,948 Age 62: $2,778 Age 67: $3,918 Age 70: $4,995 |
On average: $1,543
Individual: $1,817 2 Children: $3,744 |
On average: $1,575
Blind recipients: $2,655 Maximum payment: $3,918 |
On average: $715
Individuals: $967 Couples: $1,450 Essential person: $484 |
This is important to remember: the new payment amounts will not start until January 2025.
Beneficiaries of the retirement, survivor, and disability insurance (RSDI) program will get their higher Social Security check until January 3rd if they applied for benefits before May 1997.
If they applied for benefits after May 1997 and were born between January 1st and January 10th of any given month, they will get their check on January 8th. Please look at the following information to get a general idea of how much you will have to pay in January:
| RSDI recipients | January 3rd | Only if they claimed the first benefit before May 1997 |
| RSDI recipients (claimed after 1997) | January 8th
January 15th January 22th |
Day of birth: 1st–10th.
Day of birth: 11th–20th. Day of birth: 21st-31st. |
| Extra SSI payment | January 31st (Wednesday) | Extra SSI payment as February 1st falls on a weekend |
You can see that January will bring four payments for people who get RSDI and an extra payment for people who get SSI. That being said, people who get SSI will not get their regular payment on January 1 because it is a holiday.
These changes mean that only people who get Supplemental Security Income (SSI) will get their increase payments this year, on December 31st.
Because the payment schedule can be hard to understand, remember that you can always log in to your “My Social Security Account” and download your financial statements or even ask for more Social Security information.
Other Social Security changes that beneficiaries should be aware of
- A new rule expands the definition of a public assistance household to include SNAP benefits, impacting benefits for SSI applicants living in these households as help from other household members can be counted as income.
- Food donations will no longer be considered unearned income. As of September, food gifts will no longer be considered in the analysis of the in-kind support and maintenance (ISM) category for SSI recipients. Instead, only affordable or free housing will be allowed. This modification will benefit the 9% of SSI beneficiaries whose payments have been reduced due to food presents by ensuring that their payments do not vary as a result of food gifts.
