Social Security Changes for 2025

The Social Security Administration (SSA) announced Cost-of-Living Adjustment (COLA) Information for 2025.

Social Security and Supplemental Security Income (SSI) benefits for more than 72.5 million Americans will increase 2.5 percent in 2025.

The 2.5 percent cost-of-living adjustment (COLA) will begin with benefits payable to nearly 68 million Social Security beneficiaries in January 2025. Increased payments to nearly 7.5 million SSI recipients will begin on December 31, 2024. (Note: some people receive both Social Security and SSI benefits)

For those still working, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $176,100.

The earnings limit for workers who are younger than “full” retirement age (see Full Retirement Age Chart) will increase to $23,400.  (The SSA will deduct $1 from benefits for each $2 earned over $23,400.)

The earnings limit for people reaching their “full” retirement age in 2025 will increase to $62,160. (The SSA will deduct $1 from benefits for each $3 earned over $62,160 until the month the worker turns “full” retirement age.)

There is no limit on earnings for workers who are “full” retirement age or older for the entire year.