Social Security Checks Coming Next January: Here’s How It Could Impact Your Wallet. Beneficiaries of Social Security should be properly informed of the significant changes coming in 2025 before the New Year arrives. Knowing these changes in advance will help you better prepare and make ends meet, regardless of whether you are retired, still employed, or getting disability payments.
A COLA of 2.5% Modification: minor but beneficial
Benefits from Social Security will receive a 2.5% Cost-of-Living Adjustment (COLA) in 2025. The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) during the third quarter of the year, when inflation had considerably decreased, served as the basis for this adjustment. As a result, retired workers’ average monthly payout will increase from $1,927 to $1,976, and for couples who are both receiving benefits, the monthly total will increase from $3,014 to $3,089.
Even though the rise is better than nothing, it won’t significantly alter the situation for people who are already dealing with growing expenses in sectors like housing and healthcare. Although it may not seem like a significant relief from inflationary pressures, it does indicate that inflation is, hopefully, slowing down and that better days are coming.
Greater Contributions, Greater Future Benefits: Higher Earnings Limits
The maximum income that is subject to Social Security taxes is rising for people who are still employed and paying payroll taxes. The cap rises from $168,600 in 2024 to $176,100 in 2025. High incomes will therefore contribute more to the system, but doing so now can result in a bigger payout in retirement.
Active Retirees Gain More Flexibility
Even though you can work and receive Social Security, some of your benefits will be withheld if you are not yet at full retirement age. However, there is good news for 2025: earnings restrictions are increasing. You can now make up to $23,400 year ($1,950 per month) if you are under full retirement age without having your benefits cut. This is an increase above $22,320. The yearly limit rises from $59,520 to $62,160 ($5,180 monthly) in the year you reach full retirement age. Any benefits withheld due to earnings are factored into your payout after you reach full retirement age.
SSDI Recipients See Minor Increases
The monthly wage requirements will rise for those who receive Social Security Disability Insurance (SSDI). Benefits for non-blind recipients might increase from $1,550 to $1,620 per month. The upper limit is increased from $2,590 to $2,700 for recipients who are blind. Additionally, the Trial Work Period threshold—which permits employees to experiment with employment while maintaining benefits—is rising to $1,160 per month.
SSI Benefits Increase
Benefits for recipients of Supplemental Security Income (SSI) will also rise. Individuals’ monthly payments will increase from $943 to $967, while couples’ payments would increase from $1,415 to $1,450.
Greater Maximum Benefits for Employees in Full Retirement
The maximum monthly payout will be higher for people who intend to retire in 2025 when they reach full retirement age. In 2024, the maximum will be $3,822, however it will now be $4,018, instead. Workers who have regularly earned high income and waited until they reached full retirement age are rewarded with this larger payout. However, certain workers can earn even more by waiting until they reach age 70. For example, if you wait until you are 70 years old in 2024, your maximum benefit would be $4,873, which would increase to $5,108 in 2025.
Resource Limits Remain the Same While Students Get Minor Adjustments
The exclusion limitations for SSI recipients are marginally rising. The yearly limit will increase to $9,460 (up from $9,230) and monthly exclusions will increase to $2,350 (up from $2,290). The SSI resource limits, which are $3,000 for couples and $2,000 for individuals, are remaining unchanged, though, which has led to requests for an update.