In April 2024, over 50 million retired employees were paid by Social Security. Those monthly payouts are frequently their main source of revenue. In fact, according to a current poll, 88% of retirees rely on Social Security to a certain extent, with 60% stating that payments are their “key supply” of revenue.

Every year, the Social Security program is adjusted in particular ways to maintain benefits equality with inflation and average pay growth. Benefit recipients and those who will soon become beneficiaries must remain informed, considering the significant role payments play in retirement. However, a new Nationwide Retirement Institute survey reveals that a large number of Americans are unaware of several fundamental components of the program.

These three 2025 Social Security adjustments might surprise a lot of people in the United States

1. A cost-of-living adjustment (COLA) will be added to Social Security payments in 2025

According to a poll conducted by the Nationwide Retirement Institute, 70% of adults mistakenly responded with the assertion that “Social Security has no safeguards against price.” It is untrue to say that. A yearly cost-of-living adjustment (COLA) is applied to Social Security benefits in order to preserve their buying power.

The Consumer Price Index (CPI) component which fluctuates in the 3rd quarter of the past year that is, the 3 months from July to September determines the COLA applicable to advantages in a particular year. Because of this, the official 2025 COLA can’t be estimated by the Social Security Administration till mid-October, when CPI data from September is released.

2. In 2025, some employees’ paychecks are going to have a higher amount of Social Security taxes deducted from them

74% of adult respondents to a Nationwide study misunderstood the statement, “Those who work pay Social Security taxes on every penny of their earnings.” It is untrue to say that. The revenue subject to Social Security wage taxes is restricted under current legislation. The Social Security program does not impose taxes on income exceeding the maximum taxable revenue limit of $168,600 in 2024.

3. In 2025, certain Social Security beneficiaries will have their benefits deducted

It was found that 46% of adult respondents to a Nationwide survey mistrusted the statement, “A few of your pension funds might be withdrawn if you’re still employed before your full retirement age.” It is accurate to say that.