The cost-of-living adjustment (COLA) took effect in January, raising the average monthly retirement benefit from $1,927 to $1,976 for Social Security recipients. This 2.5% increase aims to help beneficiaries keep up with inflation.
Additionally, full retirement age has increased to 66 years and 10 months for those born in 1959. The repeal of Windfall Elimination Provision (WEP) and Government Pension Offset also restored full benefits for public sector workers, including teachers and law enforcement officers. Earnings limits have changed, with the cap increasing to $23,400 and the maximum taxable earnings threshold rising to $176,100.
Eligibility for Achieving a Better Life Experience accounts will expand in 2026, with the qualifying age for disabilities increasing from 26 to 46. These changes come as policymakers debate long-term financial stability of Social Security, with some lawmakers pushing for further reforms.
Source: https://eu.phillyburbs.com/story/news/2025/03/16/2025-social-security-benefit-amount-increase-retirement-age-and-wep/82416752007