New law increases Social Security benefits

The Social Security Administration has announced significant changes for pensioners aged 62 as of March 26, 2025. These changes will primarily affect Social Security payments, which are set to increase due to the Cost-of-Living Adjustment (COLA). The COLA has been applied to monthly payments throughout 2025, providing essential financial support to millions of retirees. The increase, which began in January 2025, ensures that each monthly payment reflects the adjustment, helping beneficiaries maintain their purchasing power in the face of rising inflation. For 62-year-old retirees, the March payment will include the 2.5% COLA increase, continuing the trend from the previous two months. The COLA-adjusted payments will be distributed according to the standard Social Security schedule. In March, beneficiaries born between the 21st and 31st of any month will receive their payment on March 26, 2025. In addition to the COLA increase, other updates introduced in 2025 continue to impact beneficiaries. The taxable earnings cap has increased for working people, and full retirement age adjustments remain in place for future retirees. These changes aim to ensure the sustainability of the Social Security program and provide greater economic security for Americans as they age. As the March payment date approaches, retirees can expect another increased deposit, continuing the trend of more extensive monthly checks that began in January. For those turning 62 or already retired, staying informed about these policy changes is essential to understanding how their retirement income will be impacted. The recent repeal of the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) also significantly changed many Social Security beneficiaries. The Social Security Administration is now responsible for recalculating benefits for those previously affected by these reductions. Current beneficiaries who were impacted by the WEP or GPO do not need to take any immediate action.

Social Security payment schedule updates

It is crucial to keep contact information updated with the SSA to receive further updates on the recalculation of benefits. Public pension recipients who have not yet applied for Social Security benefits are now encouraged to do so, either online at ssa.gov/apply or by scheduling an appointment with their local SSA office. Congressional leaders are urging the SSA to implement the new law promptly. Until notified by the SSA, individuals should continue paying Medicare premiums as billed to ensure coverage. Once Social Security benefits start, premiums will be deducted from monthly payments, or a bill will be issued if the benefit is not enough to cover the premium. Any applicable refund will be provided for prepaid premiums, and the SSA’s notice will include all necessary details. As the implementation progresses, it is essential to stay informed and vigilant. The SSA will never charge for assistance or retroactively start, increase, or pay benefits. Ignore and avoid responding to anyone offering to expedite or increase benefits. Due to these legislative changes, some 3 million Americans may benefit from higher Social Security payments beginning in April. The change in payment amount will vary from person to person, depending on factors such as the type of Social Security benefit received and the amount of the person’s pension. The Social Security Fairness Act also required all recipients to receive backdated payments to January 2023. The SSA confirmed that these have already been paid. If you have not received payment by April, you can contact the SSA to inquire about your payment status. In April, boosted payments will be issued on specific dates based on the beneficiary’s birth date and other factors. Staying informed about these changes and payment dates is crucial for retirees to understand how their retirement income will be affected. Image Credits: Photo by Aaron Andrew Ang on Unsplash