6 Big Shakeups You Saw in Your Social Security This Year
Written by
Chris Adam
Edited by
Zuri Anderson
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As the beginning of 2026 approaches, there’s been lots of talk about the future of Social Security and the big changes coming in the new year. It’s a big deal in the United States — more than 70 million Americans rely on Social Security for monthly income.
The program helps millions of retirees, survivors, widows, family members, kids, disabled workers and indigent people. Here’s a look at six big Social Security shakeups many of them saw in 2025.
Cost-of-Living Adjustment Change
Social Security benefits checks rose about 2.5% in 2025. It was one of the smaller annual adjustments in recent years — raising the average retired worker’s monthly payment by roughly $49. As noted by ChatGPT, even with the bump, rising living costs mean many recipients still feel financially squeezed.
Real Purchasing Power Under Pressure
To put that financial squeeze in other words, Social Security beneficiaries are seeing smaller benefit increases versus the cost of living. Real purchasing power for many of them is still under great pressure because of inflation and rising costs for things like healthcare and housing. In other words, the cost-of-living adjustment (COLA) change is technical, while the real-world effects are financial struggles for millions of people.
Social Security Fairness Act Implementation
This is a permanent structural change to how benefits are calculated for many retirees. A big legislative change repealed the Wind Elimination Provision and Government Pension Offset — rules that had reduced benefits for millions of public-sector retirees. Affected beneficiaries saw higher monthly checks and retroactive payments in 2025.
Staffing Shakeups at the Social Security Administration
You may have seen the news that the SSA has been undergoing significant administration and staffing changes. They include workforce reductions, office restructuring and shifts toward online-first service. There has been pushback that some changes are making it more difficult for vulnerable populations to access services.
Changes in Tax Treatment
Let’s talk about Social Security tax treatment for 2025 and beyond. New tax law provisions are reshaping how Social Security benefits are taxed for retirees. It could reduce overall tax liability for many seniors, including a temporary $6,000 senior deduction under the One, Big Beautiful Bill.
Ongoing Policy Shifts and the Future Payments
Throughout the past year, the SSA and policymakers have talked about additional structural changes. They could include revised rules and updates to information that influence expectations about benefits and trust-fund projections. These shifts didn’t just tweak checks this year — they influence upcoming policy debates and the long-term sustainability of the program entirely.
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