Social Security has been in the news a lot because of the program’s financial fragility and the potential for benefit cuts. And whenever there is an election, Social Security tends to be a big talking point for politicians.

For that reason, you may have accidentally overlooked some of the changes announced for Social Security in 2025. But here are three you need to know about, whether you’re retired and already collecting benefits or still in receipt. doing it. of your career.

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Social Security will benefit from a cost of living adjustment in 2025. This is good news.

The bad news, however, is that the benefits only increase by 2.5% in January. This is well below the 3.2% increase obtained by beneficiaries at the start of 2024.

Unfortunately, the bad news doesn’t stop there. It was recently announced that the cost of Medicare Part B would increase by $10.30 per month in 2025.

Without accounting for this, a 2.5% COLA results in an average increase of $49 per month for Social Security. But because many Social Security beneficiaries are also enrolled in Medicare, this increase in Part B premiums will reduce that increase to about $39.

There are some benefits to waiting full retirement age arrives to claim social security. If you were born in 1960 or later, this age is 67.

If you wait until full retirement age to receive benefits, you will not experience a reduction in your monthly payments. And you won’t be subject to an income cap either if you choose to stay employed.

But if you work and collect Social Security before reaching full retirement age, you may be denied some of your benefits if your income exceeds a certain threshold. In 2025, this threshold, known as the earnings test limit, is $23,400, up from $22,320.

However, what makes things a little more confusing is that there is a separate income limit for seniors who start the year without having reached full retirement age, but then reach full retirement age before the end of the calendar year. In this case, the income test ceiling is $62,160, compared to $59,520 in 2024.

Social security is financed mainly by social security contributions. And the more you earn, the more you pay, up to a point.

Social Security sets a salary ceiling each year which determines the amount of income taxed for financing purposes. In 2025, this ceiling is $176,100, compared to $168,600 in 2024.

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