Since the 2.5% cost-of- living adjustment ( COLA) went into effect in January, if you are receiving Social Security payments you have had some time to get adjusted to your new checks. Normally, your benefit would probably stay the same for the remainder of the year; but, 2025 is proving to be anything from usual for Social Security.
Four major adjustments are about to take place. While some could make your life better, others might cause fresh headaches or might not effect you at all. Still, they’re worth putting in the back of your mind should you run across them going forward.
1. larger check for millions of Social Security Fairness Act-affected seniors
In his last hours of presidency, President Biden signed the Social Security Fairness Act. This eliminated two clauses that lessened payments for many firefighters, police officers, and teachers who obtain pensions from companies not covered by Social Security.
This rule change affects certain widow(er)s as well as spousal beneficiaries, roughly 3.2 million recipients overall. The legislation covers all payments due beyond December 2023. March saw a one-time retroactive payment for many qualified seniors covering these back benefits.
The monthly benefits of affected retirees will also rise permanently. Most of them will find this happening with the April 2025 payment. The Congressional Budget Office estimates that retired persons will have an average monthly increase of $360. Affected widow(er)s will have their checks rise by an average of $1,190 per month; spousal beneficiaries will experience an average increase of $700 per month.
Still, there are some complicated situations the Social Security Administration cannot automatically handle. Should yours be among them, under the Social Security Fairness Act the money you are owed could not show up for a year. See the Social Security Administration for further information if you think this law concerns you and your April 2025 payment appears the same as your March payment.
2. stricter identity checking criteria
Beginning April 14, 2025, the Social Security Administration is implementing stricter identity verification protocols in order “further safeguard Social Security records and benefits against fraudulent activity.” Those who make changes like direct deposit adjustments and address modifications via their my Social Security account won’t notice any difference.
Those who decide to apply for benefits or ask for adjustments in their benefits, however, will have to personally visit a Social Security office. Those seeking Medicare, disability payments, or Supplemental Security Income (SSI) are an exemption.
If you would want to start your Social Security application over the phone, the new guidelines let you do so. You won’t be able to finish this application, though, until you visit a Social Security office where you have to provide your identification for an official to confirm.
You can find your closest field office using an online tool available from the Social Security Administration. This could be worth double-checking, even if you have lately visited a Social Security office close by. You might not be able to attend the same office you visited previously since the federal government has shuttered several this year.
If you would prefer not pay an in-person visit, think about opening a my Social Security account if none already exists. You will have to respond to certain identity verification questions to show you are who you claim you are when initially creating an account. Once this is set up, though, you can log in using a username and password to alter your account.
3. Revised accelerated direct deposit policies
Changing the bank account the Social Security Administration writes cheques into utilized for up to thirty days. It just takes one business day going forward.
Your direct deposit information can be found in your my Social Security account. Should you choose to avoid doing this, you can ask for a change over the phone until April 14, 2025.
4. Revers back to a 100% overpayment recovery rate.
The Social Security Administration occasionally overpays recipients in error. This entitles one to get the extra money back from next checks. In 2024, the Biden Administration set the overpayment recovery rate to the higher of $10 or 10% of your checks.
If your Social Security payments are typically $2,000 per month and one month you get $3,000, the Social Security Administration may withhold $100 from each of your future checks — thus that you would get $1,900 per month — until it recovered the extra $1,000.
Reversing the 100% overpayment recovery rate in effect before 2024, the Trump Administration is This covers every new overpayment that takes place on or on March 27, 2025. Previously occurring overpayments will still have a 10% recovery rate cap. SSI will also keep with a 10% overpayment recovery rate.
If you were overpaid, this could mean you might not collect any Social Security for a period. Retirees may find this challenging; some of them might have already spent the excess money since they were unaware if a mistake had happened.
You can call your local Social Security office to ask for a reduced rate of recovery if you cannot afford to lose your Social Security benefits owing to overpayment recovery. One might also challenge the ruling on overpayment. Should you establish the overpayment was not your fault and you cannot afford to pay it back, the Social Security Administration may waive the overpayment collection, enabling you to keep the extra money.