4 Social Security Rule Changes Taking Effect in April 2025

If you're receiving Social Security benefits, you've now had a couple of months to get used to your new checks since the 2.5% cost-of-living adjustment (COLA) took effect in January. Under normal circumstances, your benefit would likely remain the same for the rest of the year, but 2025 is proving to be anything but ordinary for Social Security.

Four key changes are about to go into effect. Some could improve your life while others could lead to new headaches or may not affect you at all. But they're still worth keeping in the back of your mind in case you encounter them in the future.

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1. Larger checks for millions of seniors affected by the Social Security Fairness Act

President Biden signed the Social Security Fairness Act in his final days in office. This removed two provisions that reduced benefits for retirees who receive pensions from employers that weren't covered by Social Security, including many firefighters, police officers, and teachers.

Approximately 3.2 million beneficiaries are affected by this rule change, including some widow(er)s and spousal beneficiaries. The law applies to all benefits payable after December 2023. Many eligible seniors received a one-time retroactive payment in March covering these back benefits.

Affected retirees will also see their monthly benefits permanently increase. For most of them, this will occur with the April 2025 payment. The average monthly increase for retired workers will be $360 per month, according to the Congressional Budget Office. Spousal beneficiaries will see an average increase of $700 per month, while affected widow(er)s will have their checks rise by an average of $1,190 per month.

However, there are some complex cases the Social Security Administration hasn't been able to automate. If yours is among them, it could take up to a year to receive the money you're owed under the Social Security Fairness Act. If you believe this law affects you and your April 2025 payment looks the same as your March payment, reach out to the Social Security Administration for more information.

2. More stringent identity verification requirements

The Social Security Administration is adopting more stringent identity verification procedures beginning April 14, 2025, to "further safeguard Social Security records and benefits against fraudulent activity." Those who use their my Social Security account to make changes like address updates and direct deposit changes won't notice a difference.

But those who choose to apply for benefits or request benefit changes another way will have to visit a Social Security office in person. There is an exception for those applying for Medicare, disability benefits, or Supplemental Security Income (SSI).

Under the new rules, you'll be able to begin your Social Security application over the phone if you'd like. But you will not be able to complete this application until you visit a Social Security office where you must present your identification for an official to verify.

The Social Security Administration has an online tool that can help you locate your nearest field office. This might be worth double-checking, even if you've previously visited a Social Security office near you. The federal government has closed several offices this year, so you may not be able to visit the same one you've been to before.

If you'd rather not make an in-person visit, consider opening a my Social Security account if you don't already have one. When you're first making an account, you'll have to answer some identity verification questions to prove you are who you say you are. But once this is set up, you'll be able to log in with a username and password to make changes to your account.

3. Expedited direct deposit changes

Changing the bank account the Social Security Administration deposits your checks into used to take up to 30 days. Going forward, it will only take one business day.

You can change your direct deposit information in your my Social Security account. If you'd rather not do this, you can request the change over the phone until April 14, 2025.

4. Return to a 100% overpayment recovery rate

Sometimes, the Social Security Administration makes a mistake and overpays beneficiaries. When this happens, it's entitled to collect the extra money back from future checks. The Biden Administration capped the overpayment recovery rate to the greater of $10 or 10% of your checks in 2024.

For example, if your Social Security checks are normally $2,000 per month and one month you get $3,000, the Social Security Administration could withhold $100 from each of your future checks -- meaning you'd get $1,900 per month -- until it recouped the extra $1,000.

The Trump Administration has reinstated the 100% overpayment recovery rate that was in place prior to 2024. This applies to all new overpayments that occur on or after March 27, 2025. Overpayments that occurred prior to this will still have the 10% recovery rate cap. SSI will also continue to have a 10% overpayment recovery rate.

This change means you may not get any money from Social Security for a while if you were overpaid. This can be difficult for retirees, some of whom may have already spent the extra money because they didn't realize an error had occurred.

If you can't afford to lose your Social Security checks due to overpayment recovery, you can contact your local Social Security office to request a lower rate of recovery. You can also appeal the overpayment decision. The Social Security Administration may waive the overpayment collection, allowing you to keep the extra money, if you can prove the overpayment was not your fault and you cannot afford to pay it back.

If you have any questions about any of these Social Security changes, it's best to contact the Social Security Administration directly.

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