What's Happening
59 minutes ago

Mark Zuckerberg Follows Elon Musk's Footsteps As Meta Reportedly Plans Major Investment Into AI-Powered Humanoid Robots

benzingabenzinga.com
1 hour ago

Do You Know How Long $1 Million Will Last If You Retire At 65? Here's A Hint – Longer Than You're Led To Think!

benzingabenzinga.com
2 hours ago

IRS Reportedly Gears Up To Lay Off Thousands Of Workers Elon Musk's DOGE Looks To Shrink The Tax Agency

benzingabenzinga.com
2 hours ago

TRADEPULSE POWER INFLOW ALERT: PALO ALTO NETWORKS INC. (PANW) MOVES UP OVER 5% AT ITS HIGH AFTER TRADEPULSE ALERT

benzingabenzinga.com
3 hours ago

Jeff Bezos-Backed Anthropic Fights US Proposal Blocking Google From Investing In AI Startups, Says It Would Benefit Rivals OpenAI, Mark Zuckerberg's M...

benzingabenzinga.com
4 hours ago

Trump Administration 'Unlikely' To Support TSMC's Control Of Intel's US Chip Factories: Report

benzingabenzinga.com
4 hours ago

Trump's 'Liquid Gold' Plan: Can He Really Make America Rich Again, or Do Oil Giants Hold the Real Power?

benzingabenzinga.com
5 hours ago

Elon Musk's Government Gig Has No Salary, No Job Title, And Plenty of Power

benzingabenzinga.com
6 hours ago

Why Altcoins Were Winning This Week

foolfool.com
6 hours ago

Russell Vought Orders Pause On All CFPB Activity, Critics Say This Gives Corporations 'The Green Light To Scam Families'

benzingabenzinga.com
6 hours ago

Prediction: Zillow Will Beat the Market. Here's Why.

foolfool.com
7 hours ago

$1000 Invested In Super Micro Computer 15 Years Ago Would Be Worth This Much Today

benzingabenzinga.com
7 hours ago

'We're Going To Find Billions' – Trump Targets Pentagon For Deep Spending Cuts

benzingabenzinga.com
7 hours ago

Here's How Much You Would Have Made Owning Meta Platforms Stock In The Last 10 Years

benzingabenzinga.com
7 hours ago

If You Invested $1000 In This Stock 15 Years Ago, You Would Have This Much Today

benzingabenzinga.com
7 hours ago

Why Siemens Stock Crept Higher on Friday

foolfool.com
7 hours ago

Here's How Much You Would Have Made Owning Regeneron Pharmaceuticals Stock In The Last 15 Years

benzingabenzinga.com
7 hours ago

This Magnificent Artificial Intelligence (AI) Stock Delivered Stellar Gains in 2024. It Can Jump Another 60%

foolfool.com
8 hours ago

Here's How Much You Would Have Made Owning American Tower Stock In The Last 20 Years

benzingabenzinga.com
8 hours ago

Why Federal Realty Investment Trust Stock Just Tanked by 6%

foolfool.com

5 2025 Social Security Rules That Take Effect Today

The start of a new year is a time of change. Many people switch jobs or healthcare coverage around now, and they may also be trying to navigate New Year’s resolutions they’ve set to improve their own lives.

In the midst of all that, they also have to get used to changes the government makes to laws about taxes, retirement accounts, and Social Security. For retirees and workers, some of the most important details to pay attention to this year are the five Social Security changes listed below.

Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free »

A couple looking at a laptop and discussing something.

Image source: Getty Images.

1. 2.5% cost-of-living adjustment (COLA)

Technically, the Social Security Administration first applied the 2.5% cost-of-living adjustment (COLA) to the December 2024 benefit. But since the Social Security Administration pays benefits in the month after the month they’re due, beneficiaries will see their first checks with the new amount arriving this month.

When you’ll get your January check depends on the day of the month you were born on:

  • Born on the 1st through the 10th: Jan. 8, 2025
  • Born on the 11th through the 20th: Jan. 15, 2025
  • Born on the 21st through the 31st: Jan. 22, 2025

If you’re receiving Supplemental Security Income (SSI) as well, you should have already received your first check on Dec. 31, 2024. These benefits are normally paid on the first of the month, unless that day falls on a weekend or holiday as is the case with New Year’s Day.

2. Higher Social Security work credit requirements

Workers will have to earn a little bit more in order to earn their 2025 Social Security work credits. You need at least 40 of these in order to qualify for retirement benefits, and you can only earn a maximum of four credits per year.

In 2024, you received one credit for every $1,730 you earned. But in 2025, it’ll take $1,810 in earnings to get one credit. However, this shouldn’t pose a significant challenge to most workers, as even many part-time employees will earn the $7,240 needed to get their four credits for 2025.

3. Higher ceiling on Social Security payroll taxes

Some workers could lose more money to Social Security payroll taxes in 2025 because the taxable wage base has gone up. In 2024, you only paid these taxes on your first $168,600 in earnings. But in 2025, you’ll owe them on the first $176,100 you earn.

Most of us already pay Social Security taxes on all our income, so this isn’t a huge issue. But high earners could find themselves paying an extra $465 per year in taxes if they’re traditionally employed or $930 per year if they’re self-employed.

4. Higher earnings test limits

Retirees who are working while claiming Social Security under their full retirement age (FRA) will be able to earn a little more in 2025 before the government withholds any money from their checks. Those at or over their FRA never have to worry about having money withheld, regardless of their annual income.

In 2024, those under their FRA all year lost $1 for every $2 they earned over $22,320. Those who reached their FRA in 2024 only lost $1 for every $3 they earned over $59,520 if they earned that much before their birthday. In 2025, these limits have risen to $23,400 and $62,160, respectively.

5. A higher full retirement age for those born in 1959 versus those born in 1958

Full retirement age reaches 66 and 10 months this year for those born in 1959. It’s been gradually increasing over the last few years and will finally stop next year when it reaches 67 for those born in 1960 and later.

You’re still free to claim as early as 62 regardless of your FRA. But claiming under your FRA can reduce your checks by up to 30%. It’s important to weigh all your options before claiming to avoid shortchanging yourself, unless you have a serious health or financial issue that makes delaying impossible.

The above Social Security changes are new to 2025, but they’re also common changes that happen every year. Whether you’re working or claiming Social Security, it’s important to keep the relevant rules in mind for the future as you will see them again in 2026 and beyond.

The $22,924 Social Security bonus most retirees completely overlook

If you’re like most Americans, you’re a few years (or more) behind on your retirement savings. But a handful of little-known “Social Security secrets” could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $22,924 more… each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we’re all after. Simply click here to discover how to learn more about these strategies.

View the “Social Security secrets” »

The Motley Fool has a disclosure policy.

Related Posts

Social Security is an essential piece to most American’s retirement plans. Without their monthly benefits, some 16.3 million seniors U.S, would be living below the

The average retirement age in the U.S. was 62 in 2023, but that number’s been slowly ticking up over time. Rising life expectancies and rising

While the stock market is still thriving, some investors may be feeling wary about the future. Spiking inflation could cause the Federal Reserve to shift

There are plenty of ways to become a millionaire, like starting a successful business, being a professional athlete, or becoming a movie star. For most