5 2025 social security rules that come into force today

The start of a new year is a time of change. Many people are changing jobs or health coverage now, and they may also be trying to navigate New Year’s resolutions they set to improve their own lives.

In the midst of all that, they also have to get used to changes the government is making to laws about taxes, retirement accounts and Social Security. For retirees and workers, some of the most important details to be aware of this year are the five Social Security changes listed below.

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1. 2.5% Cost of Living Adjustment (COLA)

Technically, the Social Security Administration first applied a 2.5% cost of living adjustment (COLA) to the December 2024 benefit. But since the Social Security Administration pays benefits in the month after the month they are due, recipients will see their first checks with the new amount arrive that month.

When you get your January check depends on the day of the month you were born on:

• Born on the 1st to the 10th: January 8, 2025
• Born 11 to 20: January 15, 2025
• Born 21 to 31: January 22, 2025

If you also receive Supplemental Security Income (SSI), you should have already received your first check by December 31, 2024. These benefits are usually paid on the first of the month, unless that day falls on a weekend or a holiday such as New Year’s Day .

2. Higher social security work credit requirements

Workers will have to earn a little bit more to earn their 2025 Social Security work credits. You need at least 40 of these to be eligible for a pension, and you can earn a maximum of four credits per year.

In 2024, you received one credit for every $1,730 you earned. But in 2025, it will take $1,810 in earnings to get one credit. However, this should not pose a significant challenge for most workers, as even many part-timers will earn the $7,240 needed to get their four credits for 2025.

3. Higher ceiling on social security contributions

Some workers may lose more money to Social Security taxes in 2025 because the taxable wage base has increased. In 2024, you only paid these taxes on your first $168,600 in earnings. But in 2025, you owe them on the first $176,100 you earn.

Most of us already pay Social Security taxes on all of our income, so this isn’t a big problem. But high earners may find themselves paying an extra $465 a year in taxes if they are traditionally employed or $930 a year if they are self-employed.

4. Higher earnings test limits

Retirees who work while claiming Social Security below their full retirement age (FRA) will be able to earn a little more in 2025 before the government withholds any money from their checks. Those at or above their FRA never have to worry about having money withheld, regardless of their annual income.

In 2024, those under their full-year FRA lost $1 for every $2 they earned over $22,320. Those who reached their FRA in 2024 lost only $1 for every $3 they earned over $59,520 if they earned that much before their birthday. By 2025, these limits have risen to $23,400 and $62,160, respectively.

5. A higher full retirement age for those born in 1959 compared to those born in 1958

Full retirement age reaches 66 and 10 months this year for those born in 1959. It has been gradually increasing over the past few years and finally stops next year when it reaches 67 for those born in 1960 and later .

You are still free to claim as early as 62 regardless of your FRA. But claims under your FRA can reduce your checks by up to 30%. It is important to weigh all your options before claiming to avoid shorting yourself, unless you have a serious health or financial problem that makes it impossible to defer.

The above Social Security changes are new for 2025, but they are also common changes that happen every year. Whether you work or claim Social Security, it’s important to keep the relevant rules in mind for the future, as you’ll see them again in 2026 and beyond.