Social Security: the main changes for the year 2025

• Social Security payments are an important U.S. public policy.
• How many years can you live outside the United States without losing your Social Security benefits?
• What is the meaning of your Social Security number?
• Why do some people receive Social Security even though they have never worked?
• What should you do if Social Security pays you more than it should?

Social Security is a key part of ensuring the financial security of millions of U.S. citizens, and in order to adapt to their most urgent needs, it is preparing a series of important adjustments for 2025, which involve, among other things, an expansion of benefits. What exactly? Here's what's planned.

Before the Social Security Administration (SSA) changes come as a surprise to you, pay close attention so that you can take timely action on your income and deductions.

WHAT ARE THE MAJOR SOCIAL SECURITY CHANGES FOR 2025?

COLA Adjustment

To mitigate the effects of inflation, Social Security benefits will experience an increase in 2025, based on the prices of goods and services in the third quarter of 2024.

Thus, it is expected that, in October, the 2.7% increase will be announced, according to estimates by the Senior Citizens League, bringing the average monthly benefit for retired workers to nearly US$51, achieving a total of US$1,967.

Payroll tax increase

In 2025, the taxable income limit is expected to increase to US$174,900. With this, some workers will pay up to $391 more in Social Security taxes.

For example, under a 6.2% tax rate, a worker with earnings over $174,900 will have $10,844 withheld from his or her paychecks in 2025, up from $10,453 in 2024.

Withholding of Social Security benefits

Meanwhile, for Social Security beneficiaries who continue to work before reaching full retirement age, there will be limits on benefit withholding. In 2024, they were set at earnings above $22,320, with a reduction in benefits, and for those who earn more than $59,520 and are close to full retirement age.

For next year, these limits are expected to reach US$23,280 and US$61,800 respectively, making it possible for beneficiaries to earn more money before their benefits are reduced.

Once beneficiaries reach full retirement age, these withholding limits no longer apply. In addition, the money withheld earlier will be gradually returned to them.

WHAT IS SOCIAL SECURITY?

Social Security is a broad-based social insurance program that provides financial benefits to eligible individuals, including retired workers, people with disabilities, and family members of deceased workers.

WHAT ENTITY ADMINISTERS SOCIAL SECURITY?

Social Security in the United States is administered by the Social Security Administration (SSA), a federal agency of the U.S. government.

The agency oversees the distribution of benefit payments, eligibility, records management, and enforcement of Social Security-related regulations throughout the country.

WHO ARE SOCIAL SECURITY BENEFICIARIES?

Social Security in the United States provides benefits to several groups of people, who are considered beneficiaries. The following are the main beneficiaries of Social Security:

• Retirees
• Working Disabled
• Spouses and former spouses
• Dependent children
• Widows and widowers
• Dependent parents

IF I RECEIVE SNAP COUPONS, CAN I QUALIFY FOR SSI?

The answer is yes, and the benefit has been expanded. Over the years, Supplemental Security Income recipients, who number 7.4 million, are generally eligible for federal benefits such as the Supplemental Nutrition Assistance Program (SNAP), which can be used to purchase healthy foods, without affecting the SSA payment. But it wasn't always the case that if you had SNAP you qualified for SSI. However, a new rule has changed that, although you must always go through an evaluation.

IF I MOVE TO ANOTHER STATE IS MY SSI PAYMENT AFFECTED?

According to the SSA, there will be no change in retiree benefits simply by moving to another state.

He remarked that there are some programs where an application must be submitted if the person moves to another state, but this is not the case with Social Security, which continues to issue the payments as they correspond to the beneficiaries.

HOW DO I RECEIVE MY SOCIAL SECURITY CHECK OVERSEAS?

If you are a Social Security beneficiary but for various reasons you are in another country, either visiting or because you have moved to another country, perhaps you are worried about how you can collect your monthly payment; well, you will still receive your retirement check. You just need to submit an application to cash it from abroad. Don't know how? You must follow a few simple steps.

WHEN IS IT NOT POSSIBLE TO RECEIVE MY SSA RETIREMENT PAYMENT?

The U.S. Social Security Administration provides benefits to 68 million retirees, up to US$4,822 per month. However, despite having reached full retirement age, not all qualify for payment. Why? Among other reasons, an insufficient number of credits. Similarly, certain government and railroad employees are off the agency's radar.

WHAT ARE SOCIAL SECURITY CREDITS, HOW ARE THEY CALCULATED AND HOW MANY ARE NEEDED TO QUALIFY FOR RETIREMENT?

Did you know that the Social Security system in the United States has a pre-retirement step for your workplace? These are credits, a kind of accounting units that are obtained as the years go by while you work and pay your taxes on time. How to calculate these credits and what are the requirements to access this benefit?

IN WHAT STATE CAN A COUPLE LIVE ON THEIR U.S. SOCIAL SECURITY PENSION ALONE?

The payment of Social Security benefits, on average, replaces 30% of a retiree's expenses, so it is recommended to have additional income from investments they made as part of a plan for their retirement. If you haven't been able to save bread for May, there's one state you could live in with your spousal pension, according to GOBankingRates. What is it?

WHAT ARE THE REASONS YOU CAN LOSE SOCIAL SECURITY BENEFITS?

If you want to keep your Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI) benefits, it is your responsibility to report certain changes and circumstances. So when can you lose benefits?

WHAT ARE SURVIVORS' BENEFITS AND WHO CAN RECEIVE THEM?

If a Social Security contributor or pensioner dies, the bereaved become survivors or beneficiaries, but you must first make arrangements with the Social Security Administration (SSA) to receive this monthly contribution. Keep in mind that in the event of death, you should not cash the checks in the name of the deceased person, but contact the SSA. How is this done?

WHO IS ELIGIBLE FOR SSI?

Supplemental Security Income covers adults 65 and older, as well as adults and children with disabilities or blindness who are low-income, according to the SSA.

"The new policy removes a critical barrier to Supplemental Security Income eligibility because the applicant or beneficiary receives informal food assistance from friends, family, or community support networks," the U.S. agency explained.

WHY DO SOME PEOPLE RECEIVE SOCIAL SECURITY EVEN THOUGH THEY HAVE NEVER WORKED?

As you well know, Social Security is a program that guarantees a pension payment to taxpayers who retire from working life or who can no longer work because of a disability, although it does not always benefit those who should. Despite efforts by U.S. lawmakers to close loopholes in the U.S. Social Security Administration (SSA) law, the fund can still benefit people who have never worked in the country or contributed a dollar. How is this possible?

SSI FOR FOREIGNERS: WHAT ARE THE REQUIREMENTS FOR IMMIGRANTS?

Supplemental Security Income (SSI) provides benefits to 7.5 million people with limited income and financial resources. Did you know that foreign nationals can benefit from this federal program, which provides up to $1,415. If you are thinking about applying, you should know that you must meet certain characteristics to be eligible for this payment from the U.S. Social Security Administration (SSA).

WHO CAN APPLY FOR THE US$2,000 DEBIT CARDS TO BE DISTRIBUTED BY SOCIAL SECURITY?

In an effort to improve accessibility and efficiency in the distribution of benefits, the U.S. Social Security Administration is implementing a new debit card system for beneficiaries of programs such as SSI and SSDI. These cards, which will be distributed with an initial direct deposit of $2,000, are specifically designed to improve the financial lives of a specific group of people. Who are they for and how to apply?

WHY DO ABOUT 70,000 PEOPLE LOSE SOCIAL SECURITY, SSI OR SSDI EACH YEAR?

The U.S. Social Security Administration (SSA) is a key institution because it pays benefits to millions of enrolled citizens every month. However, there is a group of 70,000 people who usually lose these payments, every year, and do not know the reason behind this decision of the American social program. Could you be the next one? Therefore, you should know why this happens.

BASIC RULES TO FOLLOW WHEN CALCULATING YOUR RETIREMENT PAYMENT

Retirement in the United States is a process that can include several delays, therefore, you should know which are the laws that every contributor must follow to avoid delays in obtaining your retirement payment. Among them are: analyze all earnings, proof of income and wages, but there are more.

WHY DO CHILDREN RECEIVE SOCIAL SECURITY BENEFITS?

Children, adopted children or stepchildren can receive these benefits to cover their needs, such as education. When a parent has a disability or dies, Social Security benefits help stabilize the family's financial future.

For children with disabilities whose parents have low income or limited resources, they may be eligible for Supplemental Security Income (SSI) benefits.

HOW DO I APPLY FOR A FREE REPLACEMENT SOCIAL SECURITY CARD?

The Social Security card is a very important document that you should always have on file, as it is essential for getting a job, filing taxes, applying for bank loans, as well as receiving your retirement payments. If you need to replace your card due to loss or theft, as well as to update your information, you must file a claim with the Social Security Administration (SSA). What else do you need to do?

WHY COULD 50% OF RETIREES LOSE MORE THAN $3,000 OF THEIR PAYMENT?

While your Social Security pension is untouchable, you should know that if you have other income in addition to your retirement benefit from the Social Security Administration (SSA), you may have to pay taxes that could reduce your pension by an average of $3,000 per year. How is that possible?

HOW TO APPLY FOR A SOCIAL SECURITY NUMBER?

If you are in the United States, you can submit your application online and then go to a local SSA office - by appointment if applicable - to show the respective documentation within 45 calendar days. The documents must be originals or certified copies.

Once your application is approved, you will receive a Social Security card with your number by mail within 14 business days.

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