January 17, 2025

Good News About Social Security Benefits: What You Need to Know

by Victoria Bogner, Director of Client Experience

At Allworth Financial, we know how important Social Security is to your retirement. Recent changes through the Social Security Fairness Act could mean better benefits for you or someone in your family—especially if you’ve worked in public service.

Let’s break it down in plain terms, so you know what’s happening and how it might help.

The Social Security Fairness Act is a new law that repeals two rules that have reduced benefits for some retirees:

Windfall Elimination Provision (WEP): This rule lowered Social Security benefits for people who earned a pension from jobs that didn’t pay into Social Security, like teaching or firefighting.
Government Pension Offset (GPO): This rule reduced spousal or survivor benefits if the person received a pension from a non-Social Security-covered job.

For years, these rules have caused financial headaches for many public servants and their families. The new law helps level the playing field for public servants like teachers, police officers, and firefighters who may have felt penalized under the old rules. For many, it means more financial peace of mind in retirement.

If you worked in public service or know someone who did, here’s the impact:

Higher Monthly Benefits: Retirees affected by the WEP could see their Social Security checks go up—by an average of $360 per month.
Restored Spousal and Survivor Benefits: Families impacted by the GPO will see spousal or survivor benefits return, with increases averaging $700 to $1,190 per month depending on the situation.

These changes start with benefits payable in January 2025.

If you’re affected by these changes, the Social Security Administration (SSA) will automatically adjust your benefits. You don’t need to do anything to make this happen.

That said, it’s always a good idea to check your Social Security statements to ensure everything looks correct.

Understanding Social Security is complicated, but you don’t have to figure it out alone. Your Allworth advisor can help you make sense of these changes, whether it’s reviewing your benefits, updating your retirement plan, or adjusting your investment strategy.

If you have questions about the Social Security Fairness Act or want to talk about your financial goals, give us a call. We’re here to help you make the most of what you’ve worked so hard to build.

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