Major Changes to Social Security You Should Know About
President Joe Biden recently signed the Social Security Fairness Act, bringing much-needed relief to millions of public-sector retirees. This new law removes two controversial rules—the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO).
These rules had reduced Social Security benefits for teachers, firefighters, and other public workers who also received a government pension. Now, those affected will get their full benefits, plus retroactive payments for amounts they were owed since January 2024. This change impacts more than 2.6 million Americans.
The Social Security Administration (SSA) recommends updating your contact details to ensure smooth processing of your benefits. Keep an eye out for further updates as they work on implementing these changes.
Good News: Social Security Payments Are Going Up
Thanks to a 2.5% Cost-of-Living Adjustment (COLA), millions of Social Security beneficiaries are seeing larger checks in 2025. This adjustment was made to help benefits keep pace with rising living costs.
Here’s how the changes break down:
- The average monthly payment is now $1,976, up by about $50.
- If you delay retirement until age 70, you can now receive up to $5,108 per month, an increase from last year.
- For those retiring at the full retirement age, the maximum payment has risen to $4,018.
Payments are being distributed based on birth dates, so January checks will arrive on the 8th, 15th, or 22nd.
Avoid Mistakes That Can Cost You Thousands
Planning for Social Security can be tricky, and small mistakes could lead to big financial losses. Experts say two common errors are:
- Relying on generic projections: Online tools might not account for reductions if you claim benefits early.
- Skipping personalized advice: General information might not apply to your unique situation.
For example, claiming benefits at age 62 could reduce your monthly amount to $2,710. Waiting until age 70 could raise it to $4,873, adding over $25,000 to your annual income. It’s worth consulting with a financial planner or using the Social Security Administration’s tools to create a strategy that works for you.
What’s Next for Social Security?
There’s growing concern about the future of Social Security. Experts say the trust fund could run out by 2033 unless changes are made. Possible solutions include raising the retirement age or increasing payroll taxes.
As Social Security celebrates 90 years of supporting Americans, it’s more important than ever to stay informed and plan for your financial future. Consider building additional retirement savings to protect yourself against potential changes.
Stay tuned for updates as Social Security continues to evolve to meet the needs of millions of Americans.
