01/17/2025
Social Security Rules That are Changing in 2025
- Benefits are getting a 2.5% cost-of-living adjustment in 2025, Social Security benefits are rising by 2.5%. and while that might seem like a relatively small raise at first, on the plus side, it's also a sign of cooling inflation.
The typical senior on Social Security will see their monthly benefit rise by about $49 following the cost-of-living adjustment. Those on Medicare, those, will have to subtract about $10 to account for an increase in Part B premiums. - The earnings-test limits are increasing Social Security's earnings-test limits apply to beneficiaries who haven't yet reached their full retirement age and are earning money from a job. In 2025, the earnings-test limit is $23,400, up from $22,320 in 2024. Beyond that point, $1 in Social Security benefits is withheld per $2 of earnings.
For those reaching full retirement age in 2025, there's a higher earnings-test limit of $62,160, up from $59,520 in 2024. Beyond that threshold, $1 in Social Security benefits is withheld per $3 of earnings.| - The wage cap is rising In 2025, Social Security's wage cap is $176,100, up from $168,600 in 2024. Higher earners will owe Social Security tax on an additional $7,500 of income, increasing their total added tax burden by $930. Those with employers get to split that bill down the middle, while the self-employed pay it all.