Major changes in Social Security from April 2025: Do you know?
Big changes are going to be implemented for millions of Social Security recipients in the US from this April. After the cost-of-living adjustment (COLA) of 2.5% comes into effect in January 2025, new rules will now affect payments, identity verification and overpayment recovery.
While these changes will bring relief to some, they can pose new challenges for others. Let us know in what ways these changes can affect you.
Increased Social Security payments
Under the Social Security Fairness Act passed by former US President Joe Biden, people whose pension came from non-Social Security jobs (such as teachers, policemen, firefighters) will get relief. Earlier, the Social Security benefits of such people were cut, but now these cuts have been abolished.
| Beneficiary Type | Average Increase |
|---|---|
| Retired Workers | $360/month |
| Spousal Beneficiaries | $700/month |
| Surviving Spouses | $1,190/month |
- Monthly Social Security amount of about 3.2 million people will increase.
- Most beneficiaries will start receiving new payments from April 2025.
- Cases requiring more documentation may take a little longer.
- Some beneficiaries have already received the retroactive amount in lump sum in March 2025.
New rules for ID verification
From April 14, 2025, it will be mandatory to appear in person and show a valid government ID to apply or make any changes to Social Security benefits.
Who will have to undergo ID verification?
- New applications for retirement benefits
- Applications for survivor benefits
- Subsidiary benefits to spouses and dependents
Who will be exempt from ID verification?
If you use the my Social Security online portal.
- Applying for Medicare, Supplemental Security Income (SSI) and disability benefits can still be done by phone.
- The Social Security Administration (SSA) says this step has been taken to prevent fraud and provide better services to the beneficiaries.
Speeding up direct deposit updates
Earlier, it could take up to 30 days to update the direct deposit of Social Security payments. But now, from April 2025, this process will be completed in just one business day.
- All direct deposit requests made online or in person will be processed immediately.
- The problem of delay in payment will be largely eliminated.
Strictness in overpayment recovery
If a beneficiary has been overpaid, now the government will be able to recover it faster.
- After March 27, 2025, SSA can stop up to 100% of the payment until the entire amount is returned.
- Earlier this limit was 10% per month, which has now been abolished.
If you think you’ve been overcharged by mistake, you can use these options:
- File an appeal – if you think the overpayment decision was wrong.
- Request a waiver – if you can prove the overpayment was not your fault and paying it back could cause you financial hardship.
Tax refunds and government payments will be cut again
The Treasury Offset Program is restarting in April 2025. This means that if a beneficiary owes Social Security any outstanding debt, the government can:
- Seize a tax refund.
- Withhold other government payments.
This program was temporarily halted during the COVID-19 pandemic but is now being reintroduced.
Efforts to prevent fraud
The government has made major changes to the Social Security system to prevent fraud and make it more efficient.
- According to the government, more than $100 million is lost each year to direct deposit fraud.
- New security measures are planned to save this amount and deliver faster payments to beneficiaries.
What should you do?
- Update your payment information – If you are changing bank accounts, inform SSA immediately.
- Be prepared for ID verification – If you want to make any changes, arrange for your identity card ahead of time.
- Appeal immediately if overpayment is claimed – Contact SSA without delay and explain the situation.
- Check your my Social Security account regularly – This will give you all the updates on time.
Who will be affected by the new changes?
- Higher payments – Teachers, policemen and other public sector employees will now get full Social Security pension.
- Stricter identity verification – You will now have to show ID in person to get benefits if you can’t do it online.
- Faster payments – Direct deposit updates will be completed in one day.
- Stricter overpayment recovery – The government can now fully recover any overpayments.
- Tax refund seizures resumed – The government can seize your tax refund if you owe money.
FAQs – Frequently asked questions
Who will benefit from the Social Security Fairness Act?
Government employees such as teachers, policemen, and firefighters who previously faced pension cuts.
Do I have to verify my ID in person?
Yes, if you don’t use the my Social Security online portal.
How long will it take for my direct deposit to be updated?
It will now be completed in just 1 business day.