The big changes coming to Social Security in 2025 you should know about ...Middle East

Several big changes are in store for Social Security recipients in 2025.

The biggest change could still be in store, however, as the nation waits for President Joe Biden to sign newly passed legislation that would boost Social Security payments for millions.

The bipartisan bill eliminates longtime reductions to Social Security benefits for nearly 3 million people who receive pensions from work in federal, state and local government, or public service jobs like teachers, firefighters and police officers.

But that’s not the only potential change of note in store.

Here’s what to expect in 2025:

Cost-of-living adjustment

Each year, Social Security recipients receive what’s known as a “cost-of-living adjustment,” or COLA.

In 2025, more than 70 million Americans will see a 2.5% cost-of-living adjustment in their checks.

For those wondering how much that will change their benefits, notices were set to go out, and were made available online this month, notifying beneficiaries of the change.

Maximum taxable earnings

Each year, high earners are met with a tax withholding in their checks. That number, like the COLA, adjusts annually to reflect changes in the cost of living.

In 2025, the cap for Social Security Tax will rise to $176,100. That’s up from 2024’s $168,600.

Full retirement age

While most know you can begin receiving benefits as early as age 62, you are not eligible to receive full benefits until you reach what’s known as “full retirement age.“

Full retirement age, also called “normal retirement age,” was 65 for many year, until 1983, when Congress passed a law to gradually raise the age.

The law raised the full retirement age beginning with people born in 1938 or later, and the age now gradually increases by a few months for every birth year, until it reaches 67 for people born in 1960 and later.

What’s more, “if you delay taking your benefits from your full retirement age up to age 70, your benefit amount will increase,” the agency notes.

In contrast, those who start receiving benefits early will be reduced for each month until their full retirement age.

In 2025, the full retirement age will increase by two months — to 66 and 10 months old for people born in 1959.

Full Retirement and Age 62 Benefit By Year Of Birth

What to know about the Social Security Fairness Act 

The legislation has been decades in the making but the push to pass it came together in the final weeks — and was completed in the final minutes — that lawmakers were in Washington before Congress resets next year. All Senate Democrats, as well as 27 Republicans, voted for the bill, giving it a final tally of 76-20.

“Millions of retired teachers and firefighters and letter carriers and state and local workers have waited decades for this moment. No longer will public retirees see their hard-earned Social Security benefits robbed from them,” said Senate Majority Leader Chuck Schumer, D-N.Y.

The bill repeals two provisions — the Windfall Elimination Provision and the Government Pension Offset — that limit Social Security benefits for certain recipients if they receive retirement payments from other sources such as the public retirement program for a state or local government.

People who currently have reductions in their Social Security benefits under the exceptions would soon see a boost in their monthly payments. But those increased payments would also add an estimated $195 billion to federal deficits over 10 years, according to the Congressional Budget Office.

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