If you’re already receiving Social Security benefits, you’ve probably noticed your checks increased slightly this year thanks to the 2.5% cost-of-living adjustment (COLA) that kicked in back in January. Normally, that would be the only major change for the year—but 2025 is turning out to be quite different. Four major updates are coming that could impact your benefits—some in a good way, and others that might bring new challenges.
1. Bigger Payments for Millions After Social Security Fairness Act
Before leaving office, President Biden signed the Social Security Fairness Act. This new law removed two old rules that reduced Social Security payments for people who also received a pension from jobs not covered by Social Security—like many teachers, police officers, and firefighters.
About 3.2 million people are affected. Some spouses and widows/widowers will also benefit. This change applies to payments from after December 2023. Many eligible people got a lump sum in March 2025 for missed payments.
Starting in April 2025, monthly checks will also be higher:
- Retired workers: about $360 more per month
- Spousal beneficiaries: about $700 more per month
- Widows/widowers: about $1,190 more per month
However, if your case is complicated, your increase might be delayed. It could take up to a year. If your April check is the same as March’s and you think this law applies to you, contact the Social Security Administration.
2. New Rules for Verifying Your Identity
Starting April 14, 2025, the Social Security Administration (SSA) is tightening its identity verification process to prevent fraud.
If you already have a my Social Security account and use it for updates like changing your address or bank account, you won’t see a difference.
But if you apply for benefits or make changes without using the online system, you’ll now need to visit a Social Security office in person (except if you’re applying for Medicare, disability, or SSI benefits).
You can start your application over the phone, but you’ll still need to go in person to finish the process and show your ID.
Some local offices have been closed, so check the SSA website to find the nearest one. Or, create a my Social Security account online to avoid office visits in the future.
3. Faster Direct Deposit Updates
In the past, it could take up to 30 days to change the bank account where your Social Security money goes. Starting in 2025, that change will only take one business day.
You can update your bank info using your my Social Security account. You can also call the SSA and do it over the phone—but only until April 14, 2025.
4. Full Repayment of Overpaid Benefits Is Coming Back
Sometimes, the SSA pays people more money than it should. In 2024, the government made it easier by limiting how much they could take back—just 10% of your monthly check or $10, whichever was more.
But starting March 27, 2025, the old rule is coming back: the SSA can take 100% of your check to recover any new overpayments.
For example, if you’re supposed to get $2,000 a month but were mistakenly paid $3,000, the SSA could now take your entire check until that extra $1,000 is paid back. This won’t affect overpayments that happened before March 27, 2025—they’ll still follow the 10% rule. Also, Supplemental Security Income (SSI) will continue with the 10% limit.
If losing your full check would cause hardship, you can ask SSA to reduce the repayment rate or even cancel the repayment if the mistake wasn’t your fault and you can’t afford to pay it back.
Don’t Forget: A Social Security Bonus You Might Be Missing
Most people don’t know that making smart decisions about when and how to claim Social Security can boost your income by as much as $22,924 per year. If you’re behind on retirement savings, understanding these hidden tips could make a big difference.