Major Social Security Announcements Coming Soon: 3 Things to Know Right Now

Nearly 68 million Americans will receive a Social Security check in 2024, and for many people, those checks will make or break their finances.

Therefore, it is a good idea to make sure that you are aware of the latest changes to the program. While Social Security may not change significantly from year to year, there are some adjustments that will affect your monthly payment.

On October 10, the Social Security Administration (SSA) plans to make some major announcements for 2025. Here’s what you can expect.

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1. COLA for 2025 will be announced

The cost of living adjustment (COLA) is one way to help benefits maintain their purchasing power over time. Recipients will receive monthly checks for the rest of their lives, and COLA aims to make sure those payments can keep up with rising costs.

In 2024, the COLA was 3.2% — meaning that beneficiaries received an additional 3.2% of their benefit value beginning in January of this year. On October 10, the SSA will announce the adjustment for next year, which will take effect in January 2025.

The 2025 COLA is likely to be lower than this year’s adjustment because inflation has cooled slightly over the past year. The nonprofit group The Citizens League predicted it would land at 2.5 percent, based on this year’s inflation data from the Bureau of Labor Statistics, but we won’t know the exact figure until the SSA makes the official announcement.

2. Medicare premiums will affect your benefit amount

Before you get too excited about next year’s COLA, keep in mind that Medicare costs will also change. Because Medicare Part B premiums are generally deducted from Social Security payments, higher premiums could destroy your benefits even if we receive a higher than expected COLA.

In 2024, the standard Medicare Part B premium is $174.70 per month for people earning $103,000 per year or less (or $206,000 per year or less for married couples filing jointly). In 2023, the standard Part B premium was $164.90 per month, a difference of $9.80 per month.

For some people, even slightly higher premiums can have a significant effect on their benefits. If you collect, say, $2,000 a month from Social Security, a 2.5% COLA would give you an extra $50 a month. Even though Medicare premiums only go up by about $10 a month, that’s still a big bite out of your COLA increase.

3. The earnings test limit is likely to increase

If you work while on Social Security, you may be subject to the retirement earnings test — an income limit that will determine whether your benefits are withheld because of your wages.

There are two limits, depending on whether or not you will reach full retirement age this year. If you are not at full retirement age, your benefits will be reduced by $1 for every $2 you earn above $22,320 a year. If you reach full retirement age this year, your reduction is $1 for every $3 over the $59,520 limit per year.

Data source: Social Security Administration. Table by author.

These caps generally increase each year to account for changes in inflation, so you can probably expect higher limits in 2025. This can be a good thing for those still working, as it means you can earn more up front to deal with benefit cuts.

This month is a big one for Social Security, and you can expect some big changes on the horizon for 2025. By staying on top of upcoming announcements, you can head into the year ahead as prepared as possible.