The Social Security Administration (SSA) has proposed adjustments for 2025 that will affect retirees and people with disabilities receiving Supplemental Security Income (SSI).
Because these upcoming reforms are critical for more than 72 million beneficiaries of the retirement, survivor, and disability insurance (RSDI) and Supplemental Security Income (SSI) programs, we’d like to share them in detail here.
2025 will come with new Social Security reforms you should be aware of
The Bureau of Labor Statistics confirmed a new cost of living adjustment for 2025
As confirmed by the BLS on October 10th, the new cost of living adjustment (COLA) for all beneficiaries will be 2.5% this year. This may result in a small increase in monthly benefits for Social Security and SSI recipients.
Although it will not be a radical change, in an age of rising prices, every penny counts for those who rely on these payments. Below are the confirmed payment amounts that beneficiaries will receive as of January 3rd, based on the program for which they currently qualify:
Retirement benefits | Survivor benefits | SSDI benefits | SSI benefits |
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 |
It is important to note that, despite the new COLA being the lowest in recent years, this modest increase will assist millions of retirees, survivors, disabled people, and SSI recipients in keeping up with inflation.
Similarly, because inclination and the cost of living adjustment (COLA) are correlated, lower inflation equals lower COLA increases. Receiving a lower cost of living adjustment is not always a bad thing.

The normal retirement age will change in 2025 for new applicants
One of the most significant changes for 2025 is the age at which full retirement benefits are payable. Today, the age ranges from 66 to 67, depending on the year of birth. From 2025, the minimum age will gradually rise to between 68 and 70. This shift is the result of increased life expectancy, which necessitates systemic changes for long-term sustainability.
Retirees can begin receiving Social Security benefits before reaching full retirement age; the minimum age is 62. However, depending on how early a retiree files their claim, their monthly income could be permanently reduced by up to 30%.
Furthermore, Social Security offers an up to 8% bonus to Americans who wait until they reach the age when they are eligible to receive the maximum amount, allowing them to benefit from delaying their claim. Although future revisions may occur, the 2025 FRA increase represents the penultimate age change under the 1983 Social Security Amendments.
The more beneficiaries earn in 2025, the more taxes they will have to pay
Another significant change concerns taxable Social Security income. The annual cap for 2024 will be $160,200. Those who earn more will pay more into the system, with the maximum increasing to $176,100 by 2025. If your income exceeds this limit, your tax return will reflect the change.
Which documents will beneficiaries need to apply for Social Security benefits in 2025?
If you intend to retire or apply for SSI disability benefits, ensure that you have all of the necessary paperwork. To ensure you don’t forget anything, here’s a quick checklist:
- You will need to provide proof that you are a citizen of the United States. This can be accomplished using a birth certificate or a US passport.
- Verification of your age: In most cases, your birth certificate is adequate, but you can also submit a religious record or medical records from your birth hospital in the United States.
- Present a legitimate identity document, such as a driver’s license or state ID card.
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