Not just the COLA adjustment: These are the big changes coming to Social Security payments in 2025 (and they all affect you)

Every October, Social Security recipients anxiously await the COLA announcement to see how their monthly checks will increase the following year. By 2025, with declining inflation, the annual cost of living adjustment will be 2.5%. This is a decrease compared to the 3.2% applied last year.

However, next year’s payments may also be affected three other significant regulatory changes this will affect not only retirees, but also their spouses and survivors, as well as disabled workers and their families.

Knowing this information can help retirees anticipate these changes to maximize their eligibility for maximum benefits. Even active workers can benefit from these updates. Staying informed about the changes will help you better prepare for your future, accumulate Social Security credits, and understand how much of your salary will be subject to Social Security Tax.

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here they are the three changes will come to Social Security in 2025:

Increase in the full retirement age (FRA)

Retirees will have to wait longer to reach their full retirement age. The FRA is gradually increasing to 67 years for those born between 1955 and 1960. In 2025, it will be 66 years and 10 months. For those who turned 66 in 2024, that’s 66 years and eight months.

This is the year you will come into your own full retirement age based on your year of birth:

Social Security credit requirements will increase in 2025

In 2025, you will have to earn more to receive a Social Security credit. In 2024, the amount is $1,730 per credit, also known as a “quarter of coverage,” but Iby 2025, it will rise to $1,810. You must earn 40 credits of work to be eligible for benefits, and you can earn up to four credits per year.

This increase could mainly affect low-income or part-time workers, as the increase could mean you will not receive the full four credits next year.

The salary cap for Social Security taxes will increase

The Social Security tax limit in 2024 is $168,600 and is indexed to inflation. This means that COLA 2025 will also affect the amount of taxable income on which you must pay Social Security taxes.

Next year, the maximum taxable amount will be $176,100.

READ ALSO: Here’s how much the average Social Security check will increase in 2025

*This article was written in Spanish and translated with the help of AI.