Suppose you believe that your Social Security benefits only include the monthly money you receive from the Social Security Administration (SSA). In that case, you are underestimating the value generated by all of the processes and policies that are implemented and constantly updated without being directly communicated to you.
The Social Security Administration has challenges maintaining its service level as its operating budget shrinks and Americans’ needs grow. Without making any modifications, it will go out of business sooner rather than later. However, those changes will undoubtedly influence your Social Security check, and knowing about them beforehand allows you to prepare or, better still, pressure your officials to accept or disapprove them so that your needs are met. Here, we’ll summarize some of them so you may get a jump start in the new year.
Who is going to oversee your Social Security benefits?
Martin J. O’Malley served as the SSA Commissioner from December 20th, 2023, to November 29th, 2024. During his eleven-month tenure, he oversaw improvements that decreased wait times from 24 to 13 minutes and increased access to SSA programs, particularly reducing qualifying restrictions for the Supplemental Security Income (SSI) program. However, its tenure has finished, and Carolyn W. Colvin has been appointed acting commissioner. She has previous experience in this post, serving as an acting commissioner during the Obama administration.
Unfortunately, his time may be cut short, as President Trump is set to nominate a new individual for the position once Congress approves it. For the time being, he has nominated Frank Bisignano, an American businessman well-known for his roles as Chairman, President, and CEO in the technology and financial industries, respectively. His most notable achievements involve organizations such as Finserv, First Data Corporation, and JPMorgan Chase. There is an opportunity to analyze how his private sector experience will help streamline SSA benefits and address the agency’s issues.
How will customer service impact your Social Security benefits?
There will be two changes in how the Social Security Administration deals with its pensioners. They will affect your Social Security benefits. The first is more operational, and it concerns a shift in the methodology used by the SSA to attend to in-person beneficiaries. Beginning January 6th, 2025, the SSA will introduce a mandatory appointment system. You can still visit your local SSA office to have your questions about Social Security checks answered. However, after that date, the only method to be served will be to request an appointment via their national line, 800-772-1213, or by visiting your local office.
The second modification may raise some concerns. It means a reduction in the scope of SSA services. It began with a hiring freeze on November 21st, 2024. This measure was necessary since Congress denied the request for additional cash from the federal budget. The SSA is experiencing operational challenges since it requires additional manpower and IT investments to save money. Without further funding, it will be forced to cut its physical presence or apply furloughs for present employees. Hopefully, this is not going to impact any of the Social Security payments.
How much will your Social Security benefits increase?
Starting January 1st (or December 31st, if you are an SSI member), the new Cost-of-Living Adjustment (COLA) will take effect not just on the Social Security benefits that will be delivered from that point forward but also on other aspects of the SSA’s processes. The current COLA boost is computed using increases in the CPI-W (Consumer Price Index for Urban Wage Earners and Clerical Workers) that occurred in the third quarter of this year (July, August, and September) and reflects the drop in inflation from last year. As a result, the defined amount was fixed at a 2.5% increase.
What other impacts will COLA have on your Social Security benefits?
COLA will also affect Social Security benefits by increasing other values, such as the maximum taxable earnings (from $168,600 in 20204 to $176,100 in 2025), the retirement earnings test exempt amounts (from $22,320 in 2024 to $23,400 in 2025), and even income and asset limits if we are referring to the SSI program.