U.S. Social Security has announced a number of changes to its benefits and services. Many of these changes directly affect those in retirement and their pension system. According to the SSA (Social Security Administration), the retirement age is delayed to 66 and 67, depending on the year of birth. On the other hand, the rest of the beneficiaries will see their pensions increase thanks to the 2.5% COLA (Cost of Living Adjustment) increase, derived from inflation. Social Security benefits are intended to maintain financial security while providing citizens with the necessary support.
Social Security
Due to changes in the U.S. economy, Social Security has been forced to make certain adjustments. These changes have a chronological order. Due to the implementation of tariff policies established by Republican President Donald Trump, it has caused the price of goods and services to increase significantly. This has caused hardship for Americans, who have found themselves unable to cope with this price increase. This is when the COLA comes into play. The Annual cost-of-living adjustment consists of an increase in the amount of the monthly checks received by beneficiaries. This is an attempt to offset the impact of rising prices by providing a boost to their income.
Social Security Adjustments
Some of the changes that have taken place in the Social Security administration are as follows:
- Increasing the retirement age. The SSA has increased the retirement age. If you were born after 1960, your retirement age will be 67. However, if you were born before 1959, your retirement will be two months earlier; you will be able to retire at 66 years and 10 months.
- The Biden Fairness Act. In January, the Fairness Act was signed into law, repealing two of the SSA’s most controversial rules; the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). Through them, firefighters, police officers and teachers saw their pensions reduced. Those affected will once again enjoy their full pensions, and will also receive retroactive payments starting in 2024.
- Salary and tax limits. Those who work and request economic benefits before retirement will have a salary limit. The limit is $23,400, and benefits may be affected if the limit is exceeded. On the other hand, the maximum limit of income subject to tax returns is $176,100.
- ABLE Accounts. In order for people with disabilities to be able to combine their benefits such as Medicaid and SSI, and save for their future, the age limit for accessing these accounts has been increased. Starting in 2026, the age limit for ABLE (Achieving a Better Life Experience) accounts will increase from 26 to 46.
- Monthly boost. Since the beginning of the year, beneficiaries have received a 2.5% increase in their income from the SSA, due to the COLA (Cost-of-live adjustment). This increase is in response to the SSA’s solution to the effects of inflation. However, beneficiares have criticized it because they don´t considered it sufficient in comparison with the general price increase.
Are more SSA changes coming?
Experts say changes in the Social Security Administration (SSA) are likely to continue. The economic uncertainty in the country is forcing lawmakers to take action and not leave beneficiaries unattended. In addition, it is important that the changes are made intelligently, as running out of funds for the next year, 2026, would be a serious problem for the United States. If you are collecting any type of assistance soon, make sure you receive enough information about how these changes may affect you. Social Security (SSA) stated, “Social Security’s 2025 adjustments reflect our commitment to maintaining the program’s long-term stability while ensuring that benefits remain fair and responsive to economic conditions.”
Find out what is going on with the payments of the retroactive payments!
