3 Social Security Changes You May Have Missed in 2025

It’s easy enough to miss Social Security updates when you’re not yet getting benefits, or you’re so used to getting benefits because they’ve been hitting your bank account for years that you no longer really pay attention. But you should know that a number of key changes have happened in the context of Social Security this year already.

If you’re a current recipient, you probably noticed the cost-of-living adjustment (COLA) that came through in January. Although it only amounted to 2.5%, it’s hard to overlook a boost to your monthly paychecks.

But a number of other significant changes took place with Social Security this year. Here are three you ought to know about.

1. The Social Security Fairness Act was signed into law

Social Security’s rules were long designed so that public employees weren’t double dipping by collecting generous pensions and monthly benefits at the same time. To this end, there were two provisions that resulted in reduced benefits for a few million people each year — the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO).

Earlier this year, the Social Security Fairness Act was signed into law. The Act did away with the WEP and GPO. And as a result, more than 3 million people should be seeing their Social Security benefits go up each month if that hasn’t happened for them already.

2. The Social Security wage cap increased

You might assume that every dollar you earn is subject to Social Security taxes. But actually, it’s pretty common for very high earners to pay Social Security taxes on just a portion of their income. That’s because those taxes are capped at a certain wage level each year.

In 2025, the Social Security wage cap rose from  $168,600 to $176,100. Now, higher earners are paying into the program on an additional $7,500 of income.

If you’re an average earner, this is a change you probably didn’t notice, since it wouldn’t affect you. It’s also worth noting that some lawmakers want to do away with the Social Security wage cap and instead have higher earners pay into the program on all of their income.

That, however, raises an interesting question. Social Security currently has a maximum monthly benefit it pays based on there being a wage cap. If that cap were to go away, would the program cap benefits? That’s something lawmakers would need to figure out.

3. Social Security’s earnings-test limits rose

Social Security allows recipients to collect benefits even if they’re still working. Once you reach full retirement age (FRA), you can earn any income without risking having benefits withheld.

But remember, you’re allowed to claim Social Security as early as age 62, which is five years before FRA if you were born in 1960 or later. And if you’re working and getting benefits before FRA, you’ll be subject to an earnings-test limit.

In 2025, the general earnings-test limit rose from $22,320 to $23,400. And the limit for people reaching FRA rose from $59,520 to $62,160.

Exceeding these limits means having some Social Security withheld, but not forfeited. In that scenario, you’re eligible for larger monthly benefits once FRA arrives. But it’s important to know what these limits look like so you can prepare for smaller Social Security in the near term.

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