Social Security in the United States has news regarding legislative changes. The Social Security Administration has announced changes in federal laws regarding social benefits for citizens, especially those related to retirement. Given inflation and the rise in COLA, they have increased the income limit, made it more difficult to access Social Security benefits, increased monthly payments and an increase in the salary limit.
Social Security (SSA)
Social Security is the part of the administration dedicated to providing pensioners and those unable to work due to disability with an economic pension. Any person over the age of 62 who has contributed during his or her lifetime is eligible for a monthly SSA payment. The amount of income received will depend on how much has been paid to social security throughout working life. It is characterized by being quite changing and with a rather accelerated pace of new measures.
New rules
The Social Security administration, which is responsible for providing financial aid to workers and pensioners as well as collecting taxes, has published that its rules are going to change. Some will be disadvantaged and others will benefit, as it also includes a new law. Take a seat, and let’s continue with the news. Five new measures have been launched. Are you ready to see what is coming? Let´s go!
Surprise law
Let’s start with the good news. Do you remember the Windfall Benefits Elimination (WEP) Act and the Government Pension Compensation (GPO) Act? These were laws under which the monthly salaries of pensioners who had worked in the public sector were reduced considerably. Both have been repealed by the enactment of the Social Security Equity Act. This derogation has resulted in all those affected by these laws having to receive retroactive payments to make up for the losses that have occurred. Check your bank account because you may get a good surprise!
New income limits
This 2025 will be a good year. An increase in the thresholds of minimum income that citizens can generate without being affected by deductions, has been established. If you have not yet reached retirement age, your income may be as high as $23,400 per year, up from $22,320 in 2024. If you’ve already retired (FRA), you can forget about the $59,520 in 2024 and focus on the $62,160 in 2025. These new standards have encouraged more part-time work and a better quality of life for pensioners.
Upper salary limit
Although this is a measure that affects those citizens with very high incomes, it also helps the social security to collect more contributions from those people who have more money. The new figure has been set at $176,100 compared to $168,600 in 2024.
Difficulty in benefiting from Social Security
This measure is of interest to those who have not yet retired. Although most workers would not have a problem, those with low incomes or part-time jobs might be affected. In 2024, the credits needed to score in the SSA were $1,730. Now, in 2025, they have to reach $1,810. On average, the maximum credits per year is 4, with a minimum annual amount of $7,240. It is not a great challenge for the majority of the population, but there is a percentage that will be harmed.
2.5% increase in benefits
This measure is a consequence of COLA. The lower the number of tails, the better the country’s economy. This time, however, it does not quite fit. Social security has never seen such a small increase in a decade. The purpose of applying COLA to benefits is to ensure the quality of life of beneficiaries in the face of economic difficulties generated by inflation in the country. Pensions will increase by 2.5% this year, allowing retirees some more economic flexibility.
More changes to come
For the moment these are all the measures taken by the Social Security for this year. However, it is advisable to stay informed through their website and official channels, and also check your profile of My Social Security not to miss any benefit you can opt for.
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