3 Groups Of People Who Could Get More Social Security In 2025 (and It's Not Because Of The Cost-of-living Adjustment)

Social Security checks saw a 2.5% boost this month thanks to the latest cost-of-living adjustment (COLA). For most retirees, this is the only benefit increase they can expect all year. Their checks won't go up again until the next COLA takes effect in January 2026.

However, three groups of people could receive additional benefit increases this year thanks to some little-known Social Security rules and changes.

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1. Workers and spouses affected by the passage of the Social Security Fairness Act

The recently passed Social Security Fairness Act will result in increases for workers who previously had benefits reduced due to the Windfall Elimination Provision (WEP) and spouses of these workers who had benefits reduced under the Government Pension Offset (GPO). These provisions applied to those who had received a pension from an employer that didn't withhold Social Security taxes from their checks. This included many government workers, like teachers and police officers.

President Biden signed this into law on Jan. 5, but many of the details still need ironing out. Those affected are entitled to larger monthly benefits going forward. The average check is expected to increase by $360 per month, which will give these seniors about $4,320 more per year.

The law applies to all benefits issued after December 2023. That means those who claimed Social Security in 2024 are also owed back pay for the amounts withheld under the WEP or GPO before the government passed the Social Security Fairness Act.

It's currently unclear when these payment changes will occur. The Social Security Administration (SSA) has stated that those who are already claiming benefits don't have to take any action other than to verify that the SSA has your most recent mailing address and direct deposit information on hand. It will presumably reach out with more details regarding the Social Security Fairness Act as they're available.

2. Some Colorado and West Virginia residents

Colorado and West Virginia are two of only a handful of states that tax the Social Security benefits of some of their residents. But both relaxed their laws slightly in 2025, which will enable some retirees to hold on to more of their checks.

Colorado already had a law on the books that excluded Social Security benefits that were taxable at the federal level from state income. However, before this year, that law only applied to those 65 and older who had adjusted gross incomes (AGIs) of $75,000 or less if filing individually or $90,000 or less if married filing jointly.

In 2025, the state expanded its law to include anyone 55 and older. Income limits still apply. Keep in mind that Colorado could still tax Social Security benefits not taxable under federal law.

West Virginia is in the process of phasing out its Social Security benefit tax. All benefits for individuals with AGIs of $50,000 or less and married couples filing jointly with AGIs of $100,000 or less have been exempt from state income tax since 2022. In 2024, 35% of benefits were exempt for those over the $50,000 and $100,000 AGI thresholds.

In 2025, the exemption will climb to 65% for those higher earners. And in 2026, the state will exempt all Social Security benefits from state income tax for the first time.

3. Those reaching full retirement age (FRA) who had benefits withheld due to the earnings test

The Social Security Administration assigns everyone a full retirement age (FRA) based on their birth year. For today's workers, FRA ranges from 66 to 67. You can claim as early as 62, but there are consequences to applying under your FRA. For starters, the government shrinks your checks by up to 30%.

Young claimers can also run afoul of the Social Security earnings test. This is where the government withholds money from your checks if your income exceeds certain limits. In 2025, you lose $1 for every $2 you earn over $23,400 if you'll be under your FRA all year. If you'll reach your FRA this year, you only lose $1 for every $3 you earn over $62,160 if you earn this much before your birthday. In previous years, those limits were lower.

These benefits aren't gone forever, though. The government recalculates your benefit when you reach your FRA and increases your checks to make up for what it withheld previously. So those who will reach their FRA this year could see a boost to their checks after their birthday. How much more they'll get depends on how much they had withheld over the years due to the earnings test. A larger amount withheld will lead to a larger increase at your FRA.

If you have any questions about how the earnings test could affect your benefits, it's best to reach out to the Social Security Administration for clarification. You can do this online, over the phone, or by scheduling an appointment at your local Social Security office.

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