Social Security’s 2025 cost-of-living adjustment (COLA) isn’t the only big change coming. 4 more major updates coming next year.

The government has announced the biggest social security news of the year — 2025 Cost of Living Adjustment (COLA) — on Oct. 10, and it was a little overwhelming. Retirees will get just 2.5 percent more next year, which will add about $49 more to the average monthly benefit.

But that’s not the only big change Social Security will see next year. Four other changes will affect beneficiaries and workers who pay Social Security taxes.

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1. Workers will have to work harder to qualify for Social Security

You must earn 40 credits of work to qualify Social security pension benefits when you turn 62. One work credit is defined as earnings of $1,730 in 2024, and you can earn a maximum of four credits per year.

Next year, workers will need $1,810 in annual earnings to secure a Social Security credit. They will need at least $7,240 in annual earnings to get the maximum four credits in 2025.

Fortunately, even many part-time workers earn that much, so it shouldn’t have a significant effect on most people’s Social Security eligibility. If you have already earned 40 work credits in previous years, this change will not affect you at all.

2. The government will tax more income than ever before

Most people pay Social Security taxes on all their income, but that’s not true for some wealthy workers. There is a cap on income subject to Social Security tax — $168,600 in 2024. Anything over that amount is not subject to this tax and will not help you qualify for a higher Social Security benefit in retirement.

This tax cap is indexed for inflation and rises to $176,100 in 2025. This will force some high earners to pay more in Social Security taxes than they are used to. But for the average person, it won’t make a difference.

High earners should prepare for this change every year, as the tax bracket will continue to rise. Some politicians have even proposed lifting it or eliminating it entirely to help solve the Social Security funding crisis. However, the government has yet to agree on this or any other solution.

3. Earnings test limits are increasing

The earnings test withholds some benefits from older people who work while claiming Social Security if they haven’t reached full retirement age (FRA). That’s 66 to 67 for today’s workers, depending on their year of birth.

In 2024, you’ll lose $1 of your checks for every $2 you earn over $22,320 if you’re under the FRA all year. If you’ve hit or will hit your FRA this year, you’ll lose just $1 for every $3 you earn over $59,520 if you earn that much before your birthday.

Those limits will increase to $23,400 and $62,160, respectively, next year. Earnings-tested workers will be able to earn a little more money before they have to worry about the government withholding some of their paychecks.

In case you’re wondering, money withheld from the earnings test doesn’t go away forever. The government will increase your benefit when you reach FRA to account for what it previously withheld. These funds will come back to you, just in a different way.

4. The maximum benefit is increasing

For the first time, the wealthiest Social Security retirees will take home more than $5,000 a month — $5,108, to be exact. However, most people won’t earn anywhere near that amount.

To claim the largest Social Security checks possible, you must pay the maximum amount of Social Security payroll taxes for at least 35 years and delay claiming Social Security until age 70. Most people can’t afford to do this, so they get less. For comparison, the average benefit in 2025 is expected to be about $1,968 per month.

The changes above may not all be relevant to you at the moment, but they are worth considering for the future, especially if you have a large income or face the earnings test. The Social Security Administration typically adjusts the above factors annually, so expect to see them change again in 2026 and beyond.