Significant Social Security Changes Are Coming to Americans in 2025

(PatriotPostNews.com) — Social Security benefits are the primary source of income for many Americans, but most recipients do not understand how the benefits can change.

The majority of Social Security recipients polled were unaware of basic facts concerning Social Security benefits. Most recipients believe Social Security does not match inflation. A majority of retirees also believed Social Security applied to all of their income.

Social security is adjusting benefits in an attempt to keep up with rising inflation. Americans are struggling more than ever in recent history to pay their bills and even afford groceries. The Social Security Administration is increasing the income threshold, which could impact the amount of taxes withheld from higher-income American workers. However, the upper limit on earnings that are subject to Social Security taxes will also be increased.

Polls show that 70% of Americans believe that Social Security benefits are not adjusted for inflation. However, a 2.7% cost of living adjustment is expected. The change would see the average retiree’s monthly benefits increase to $1,967. The adjustment is prescribed by the previous year’s Consumer Price Index.

In addition to inaccurate beliefs about Social Security being adjusted for inflation, 74% of those polled believe that taxes for Social Security are taken from total income, as opposed to a specified cap. For 2025, the limit on taxable income is predicted to increase to $174,900, which would see the maximum tax increase by $391. Social Security taxes are only levied up to a specific cap, which is adjusted annually based on earnings trends.

Of the individuals tested, 46% were unaware that exceeding income limits can cause benefits to be withheld if the individual has not reached retirement age. Starting in 2025, earning thresholds before withholding will rise to $23,280 at the lower limit and $61,800 at the higher limit. The withheld benefits are eventually returned to retirees. Inflation is forcing many changes to Social Security Benefits.