Are You Aware of These Social Security Changes Coming in 2025?

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The Social Security Administration (SSA) annually changes the benefits of Social Security. The changes affect all retirees receiving them, especially those who depend on them to meet most of their monthly expenses.

Earlier in October, the SSA announced the changes for the upcoming year. The most significant benefit to seniors is the cost-of-living adjustment (COLA).

The COLA for 2025

Inflation has affected everyone in the past few years. It was the highest in 2022; those with lower incomes may have felt more impact than others. Prices in almost every category rose significantly, making it difficult for many to meet their basic needs. Unfortunately, the high prices—particularly for rent and food—have not decreased, and even though inflation rates are now lower, inflation persists.

In 2025, the SSA announced that there would be an increase of 2.5 percent for those receiving Social Security benefits and supplemental security income (SSI). The increase will begin in January.

The SSA says there will be an average monthly increase of about $50. Last year, the 2025 Social Security COLA was 3.2 percent, increasing by about 2.6 percent on average in the previous 10 years.

According to Fool, the cost-of-living increase for Social Security means that spouses can expect an average increase of about $23 per month. Survivors and disabled workers will receive an average increase of about $38.

The Full Retirement Age Increases in 2025

How much retirees receive from the SSA depends on when they apply for the benefits. The earliest you can claim them is at age 62, but they increase every month you wait until you reach 70.

There is a significant benefit to waiting at least until you reach your full retirement age before you start getting your benefits. Bankrate has a chart showing that those who wait until 70 to get benefits earn more in benefits by the time they reach 80 than those who start at 62.

The date you can start getting full retirement benefits depends on when you reach your full retirement age. In 2025, you must have been born in the first two months of 1959 and must be 66 and 10 months before reaching your full retirement age. It means you will need to wait two months longer than in previous years.

More Difficult to Qualify for Social Security Benefits

Qualifying for Social Security benefits requires earning a certain amount of money per quarter. You can earn this amount in 10 years if you work consistently. To be eligible in 2025, you must earn a minimum of $1,810 per quarter for one credit or $7,240 per year for a maximum of four credits a year. Forty credits are needed to qualify.

The earnings needed are still low enough to enable even part-time workers to qualify. They would only have to earn $604 per month.

Income Limits for Social Security in 2025

Every year, Social Security limits how much you can earn while getting benefits. Until you reach full retirement age, there is an earnings limit of $23,400 in 2025 before your benefits are reduced. This limit is an increase of $1,080 from 2024.

After you earn more than the limit in 2025, Social Security will withhold $1 of your benefits for every $2 earned. This amount has not been lost but will be returned after you reach full retirement age.

In the year you reach your full retirement age, the rules change. During that year until your birth month—but not including it—you can earn up to $62,160 (an increase of $2,640 from 2024) without a penalty. Every $3 earned above that will reduce your benefits by $1.

An Increase in the Maximum Taxable Earnings Limit

Social Security limits how much you get taxed for Social Security. A certain percentage of every paycheck you have goes to the government for Social Security and Medicare. In 2024, the taxable amount was $168,600, but it was raised to $176,100 for 2025. The result is that people in this earnings range will be paying more for their benefits than before.

Breaking down this figure to a monthly amount means that the biggest possible benefit from Social Security in 2024 is $4,873. In 2025, USNews reveals that the maximum amount receivable will be $5,108 per month.

Benefits for the Disabled Will Increase

Disabled individuals still in the workforce can earn up to $1,550 per month without impacting their Social Security benefits. In 2025, they can earn up to $1,620 monthly, an increase of $70.

Individuals who are blind can also earn more in 2025 than they did this year without a penalty. Their income limit has been raised from $2,590 per month in 2024 to a maximum of $2,700 in 2025.

Benefits for people with disabilities are determined by how many credits the worker had at the time of the disability. The SSA says that disability payments usually start six months after you become disabled.

If you are not already receiving Medicare benefits, remember that you must apply within a seven-month period, which includes three months before your 65th birthday, the month of your birthday, and the three months after it. If you are still working, you do not have to apply to receive Social Security benefits, but you have the option to do so. If you can wait for Social Security benefits until you are 70, you will receive a much higher check every month.

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