If you collect Social Security—or plan to soon—there are several important updates you should know about in 2025. From benefit increases to tech upgrades and shifting tax limits, these changes affect how much you receive, how you access services, and how long you’ll wait for support. Here are the top five updates to watch.
1. Benefits rose 2.6% thanks to COLA
The 2025 Cost-of-Living Adjustment (COLA) increased Social Security benefits by 2.6%. This marks a slowdown from the record jumps seen in 2022 and 2023, but still helps retirees and disability beneficiaries keep up with inflation. For the average retired worker, the increase means about $40 more per month. All monthly checks issued this year reflect the higher COLA.
2. Maximum taxable earnings increased
The wage cap for Social Security taxes rose from $160,200 to $168,600 in 2025. This means higher earners will pay more into the system before hitting the tax limit. The Social Security tax rate remains 6.2% for employees and 12.4% for the self-employed. These changes affect how much you contribute and how much you may eventually receive in benefits.
3. Full retirement age remains 67 for those born in 1960 or later
There were no changes to full retirement age (FRA) this year, but the topic remains hot in Washington. For now, anyone born in 1960 or later will need to wait until age 67 to receive full benefits. Lawmakers continue to debate raising the FRA further to reduce strain on the trust fund, but no final decision has been made.
4. New online tools improve benefit tracking
The Social Security Administration upgraded its online portal, offering a more user-friendly design and improved mobile access. The “my Social Security” dashboard now includes real-time benefit estimates, a downloadable earnings report, and easier access to Medicare enrollment options. These upgrades aim to reduce in-person traffic at field offices and help users manage their benefits independently.
5. More field offices experimenting with limited hours
Some SSA field offices are testing new schedules with fewer walk-in hours and more appointment-only windows. The agency says this shift allows staff to process claims more efficiently. However, advocacy groups warn it may make access harder for older people without internet or phone access. Before visiting your local office, check updated hours online.
Bottom line: changes affect workers and retirees alike
Whether you’re collecting benefits or still working, these Social Security changes affect how much you’ll earn, how much you’ll pay in, and how you access your account. Stay informed so you can make smart decisions about your benefits in 2025 and beyond.
This content is brought to you by the FingerLakes1.com Team. Support our mission by visiting www.patreon.com/fl1 or learn how you send us your local content here.