The 2025 payment cycle for Social Security and Supplemental Security Income payments has begun, with a 2.5 percentage increase. This increase is due to the annual cost-of-living adjustment (COLA) and will benefit an estimated 72.5 million Americans, adding to some financial relief from the ongoing inflation. On the other hand, beneficiaries will need to prepare for great changes, such as transferring their online accounts to Login.gov as one of the rules.
COLA Increase
The COLA increase ensures that Social Security and SSI payments continue to grow with inflation. This adjustment for 2025 represents an average $50 per month increase for retirement beneficiaries. About 68 million Social Security beneficiaries will receive the increased amount in January 2025, while 7.5 million SSI beneficiaries began receiving it on December 31, 2024.
According to SSA Commissioner Martin O’Malley, “This increase will help millions of people afford their bills as inflation slows down a little.” This increase is especially important for people who rely on limited income.
New Login.gov
Beginning from 2025, all recipients will have to migrate their online accounts from My Social Security to Login.gov, a new government system meant to bolster security and accessibility in all government services. All online services will require this transition, or benefits might be interrupted.
Why is an online account important?
An online account is important because it allows you to access a number of services, such as:
- Getting a new Social Security card
- Accessing tax-related documents such as SSA-1099
- Updating your personal information such as address or bank details
- Tracking benefit status and estimated amounts
If you do not transfer your account to Login.gov, you may experience interruptions in access to these services and delays in your payment.
How to transfer an account to Login.gov?
- Create an account on Login.gov: Go to Login.gov and create your account by following the instructions.
- Link your Social Security account: Transfer your data securely by following SSA guidelines.
- Verify information: Check all personal information so that there are no mistakes and there is no problem with your payment.
Taxable Earnings Limit
Another change in 2025 will affect high-income individuals. The maximum taxable earnings limit for Social Security is raised from $168,600 in 2024 to $176,200 in 2025.
| Year | Maximum Taxable Earnings |
|---|---|
| 2024 | $168,600 |
| 2025 | $176,200 |
This change will cause a larger share of high-income individuals to be subject to Social Security taxes.
Important things for beneficiaries
Take these important steps to properly manage your benefits:
- Check regularly for notifications sent by the SSA.
- Complete your account transfer quickly at Login.gov.
- Update your contact information, if necessary.
By taking these steps, you can avoid any problems and take advantage of the increased payment while also ensuring the security of your account.
Conclusion
The COLA increase in 2025 and the new Login.gov rule are aimed at improving the financial condition and security of beneficiaries. Knowing about these changes in advance and updating on time will help you use your benefits properly without any hassle.
FAQs
1. What is the 2025 COLA increase for Social Security?
The 2025 COLA increase is 2.5%, providing an average $50 monthly boost for Social Security beneficiaries.
2. When will the 2025 Social Security payments be increased?
Social Security payments will increase in January 2025 for 68 million recipients, while SSI payments began on December 31, 2024.
3. Why do I need to migrate to Login.gov in 2025?
Migration to Login.gov ensures secure access to your Social Security account and prevents disruptions in receiving benefits and services.