2 Recent Social Security Changes That You Need to Know About

Social Security changes slightly every year, undergoing adjustments that can significantly affect individuals receiving benefits. The 2025 year started with a 2.5% cost-of-living increase. Additionally, beneficiaries who still work were granted greater flexibility in the form of higher earnings-test limits. However, it’s important to remember that not all SS changes occur in January; major adjustments emerge later in the year.

Over the past 60 days, recipients have pointed out two important Social Security updates. To start, the Windfall Elimination Provision and Government Pension Offset was repealed. This increased payments for millions of Americans who were eligible to receive retroactive sums. Second, the overpayment recovery policy was overhauled, with the claw back rate falling from 100% to 50%. 

This slideshow navigates the recent changes made to Social Security, including who benefits and what to do if you are affected. If you are receiving SS payouts, or will be in the near future, staying up to date on these changes can help you understand the ins and outs of Social Security and prepare you to make wise decisions for your financial goals.

Recent Changes to Social Security

• Social Security often changes annually, usually at the start of the year
• January brought a 2.5% cost-of-living boost for Social Security benefits
• Earnings-test limits also increased, helping working seniors retain more benefits

Two New Changes in the Last Month

• Not all changes to Social Security happen in January
• Two key updates were implemented in the last four weeks
• These changes may affect millions of beneficiaries

WEP and GPO Repeated

• The Social Security Fairness Act repealed the Windfall Elimination Provision and Government Pension Offset
• This change benefits around 3.2 million Americans
• Affected recipients may receive retroactive payments

Impact of the Repeat

• The WEP and GPO were originally designed to prevent ‘double-dipping’
• Repeal allows certain pension workers to collect higher Social Security payments
• Some retroactive payments are still being processed

SSA Overpayment Recovery Revised

• Social Security sometimes overpays recipients by mistake
• The previous 10% recovery rate was raised to 100% in March
• This created hardship for many seniors

New 50% Recovery Rule

• In April, the SSA reduced the recovery rate from 100% to 50%
• This means up to half of future benefits could be withheld
• It’s an improvement but still impactful for affected seniors

Options for Affected Seniors

• Seniors can contact SSA to request a lower recovery rate
• Demonstrating financial hardship may reduce the withholding amount
• It’s important to advocate for manageable repayment terms

Staying Informed is Crucial

• Social Security changes can happen at any time of year
• Beneficiaries should monitor announcements regularly
• Staying informed helps ensure timely responses to changes

 

The post 2 Recent Social Security Changes That You Need to Know About appeared first on 24/7 Wall St..