3 Positive Social Security Changes That Arrived In 2025

When you see the name "Social Security" in the news, the context isn't always positive. For example, a lot of people are worried about Social Security cuts, so you may come across warnings that the program is on the verge of going bankrupt (and it's not).

Along these lines, Social Security sometimes undergoes changes that aren't exactly welcome. In 2025, for example, the wage cap increased from $168,600 to $176,100, requiring higher earners to pay Social Security taxes on an additional $7,500 of income.

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But the news hasn't been all bleak for Social Security this year. Here are three positive changes that arrived in 2025.

1. A 2.5% cost-of-living adjustment

Social Security benefits are eligible for a cost-of-living adjustment (COLA) each year so that they have a chance to keep up with inflation. In 2025, Social Security got a 2.5% COLA. While you may be inclined to put that into the "bad news" category, here's why that would be wrong.

First, there have been years in the past when Social Security got no COLA at all. So a 2.5% raise is a far better outcome for seniors than that.

Also, a smaller COLA is a sign of cooling inflation. That alone might spell relief for seniors this year, especially given the rapid pace of inflation in recent years.

2. A higher earnings-test limit

Seniors are permitted to earn money from a job while collecting Social Security. Once you reach full retirement age, you can earn any amount of income from work without risking benefits being withheld. But if you haven't gotten to that point yet, you'll be subject to an earnings-test limit.

In 2025, the earnings-test limits are higher than they were in 2024. The general earnings-test limit is $23,400, up from $22,320 a year prior. For seniors reaching full retirement age in 2025, the earnings-test limit is $62,160, up from $59,520.

It's worth noting that benefits withheld for exceeding the earnings-test limit aren't forfeited -- they're simply taken out temporarily and repaid once full retirement age arrives. But either way, seniors get more leeway this year to earn money without a negative impact on their monthly Social Security checks.

3. A larger maximum benefit

It's generally said that it's very tough to retire on Social Security alone. But things may be different if you're eligible for the program's maximum monthly benefit.

This year, Social Security's maximum monthly benefit at full retirement age is $4,018. However, the largest benefit you can claim in 2025 is $5,108.

You'll need to delay your claim to age 70 to score a benefit that high, and there are other criteria to meet, too, which explains why most seniors aren't eligible for the max. But still, the fact that a larger monthly benefit is available this year is a good thing.

As much as you might come across negative news in the context of Social Security, these three changes are worth being happy about. And who knows? In the coming years, we could see lawmakers put their heads together and implement more positive changes to Social Security -- perhaps changes that take benefit cuts off the table and shore up the program's finances for the long haul.

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