If you've been on Social Security for a while, changes to the program may not seem all that unusual to you. Each year, the government makes updates to benefits and the formula used to calculate them. But 2025 hasn't been an ordinary year. Several unusual changes have already taken place, and a few more are set to go into effect by the end of December.
They may not all affect you, but chances are, at least one will have a pretty significant impact on your budget as we move into 2026.
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1. The Social Security Fairness Act's passage
Congress passed the Social Security Fairness Act (SSFA) in January. This law eliminated two longstanding Social Security provisions -- the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) -- that had previously reduced the amount of benefits that would be paid to people who received pensions from employers that didn't pay into Social Security on their behalf.
As a result of this change, many former teachers, firefighters, police officers, and other government workers saw their benefits jump this spring, with some getting an additional $1,000 or more each month.
The Social Security Administration finished making these benefit adjustments back in July. If you were affected, you should have been notified of the change, and you've likely already begun receiving your new, larger benefit checks.
2. Overpayment recovery rate increase
In March 2024, the Biden administration made a change to how Social Security dealt with overpayments: If, for some reason, an individual was found to have received more than they were due, the agency would withhold at most 10% of each of their future checks until all of the overpayment was recovered. The goal of spreading out the repayment period this way was to avoid putting unnecessary financial hardship on retirees.
Early in 2025, President Donald Trump reversed that move, reverting the Social Security overpayment recovery rate from 10% per check back to 100%. This gave the government permission to withhold the entirety of your checks until it recouped its money. However, a few weeks later, he cut the recovery rate to 50%.
Overpayments are uncommon, but if this happens to you, losing half your checks for any period could still be devastating. However, if it will be a hardship, you can file a request for a lower repayment recovery rate.
3. The end of paper check delivery
The Social Security Administration announced in July that on Sept. 30, it would stop sending paper checks to beneficiaries. This change will save the government about $0.35 per payment while also improving the speed and security with which funds are distributed.
If you're currently receiving paper Social Security checks, you can switch to direct deposit into a bank account or request a Direct Express Card. This is a prepaid debit card that the government will automatically load your Social Security benefit onto each month. You can change the method by which you receive your payments by logging into your my Social Security account or by contacting the Social Security Administration.
4. Reduced Social Security benefit taxes for some
Trump's "big, beautiful bill" made several major changes to the tax code, including adding a new deduction for seniors worth up to $6,000 for single adults and up to $12,000 for married couples. This is on top of the standard deductions for those filing statuses and the existing senior tax deduction.
Contrary to what some sources claimed, this change did not eliminate or modify the existing taxes on Social Security benefits. However, a tax deduction will reduce your taxable income for the year, so you could pay taxes on a little less of your Social Security benefits than you would have before.
5. Cost-of-living adjustment (COLA)
The Social Security Administration will announce the size of its next cost-of-living adjustment (COLA) on Oct. 15. This will take effect with the December 2025 payment, which will go out to beneficiaries in January 2026.
Based on current estimates for U.S. inflation during the third quarter, the COLA will come in at around 2.7%. That would increase the average monthly benefit of $2,008 (as of August) by $54.
Once the COLA is official, you will be able to calculate how much it will add to your 2026 benefits. But you should also get a personalized COLA notice in December. You can use that information to begin planning your budgets for 2026.
