The US made major Social Security changes for 3 groups of older Americans — here’s how it could impact you in 2025 (and beyond)

1. Americans who are about to retire

One of the biggest changes for those about to retire is a two month increase to the FRA for folks born in 1959. The FRA has been creeping upward since 1983, when Congress increased it from 65 to 67.

This year, those turning 66 will have to wait 10 months to receive 100% of their benefit, which means the earliest month to qualify would be November 2025. While you can claim your benefit as early as age 62, you’ll take a permanent decrease in the amount of your monthly check — up to about 30%.

This year we’ll also see an increase in the maximum taxable earnings limit from $168,600 in 2024 to $176,100. For higher earners, this means a bigger chunk of your paycheck will go toward Social Security taxes, though this will help fund Social Security, which is projected to be depleted by 2037 unless changes are made.

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2. Americans who receive disability or veteran benefits

Americans living with a disability or medical condition that impacts their ability to work could see a bump in their Social Security Disability Insurance (SSDI) benefits. SSDI is designed to support Americans who are largely unable to work because of a disability or medical condition.

You’re still allowed to earn money and collect SSDI, so long as your earnings don’t reach a certain threshold or “substantial gainful activity,” according to the SSA.

In 2025, that threshold has been raised by $70 to $1,620 a month for most beneficiaries, while someone who is legally blind receiving SSDI can earn up to $2,700 a month.

Veterans will also see an increase in their VA disability compensation of 2.5%, thanks to the COLA. This increase also applies to surviving spouses of veterans receiving dependency and indemnity compensation payments.

There’s also the potential for increases in compensation rates and coverage for new presumptive conditions, which could help some veterans qualify for benefits who previously didn’t.

3. Americans who are working while collecting their benefit

For older Americans collecting their Social Security benefit while continuing to work — such as part-time or gig work to bring in a bit of extra cash — there’s a cap on how much you can earn before the SSA starts clawing back some of your benefit. This could also impact anyone who hasn’t yet reached FRA but continues to work while collecting survivor benefits.

The good news for those reaching FRA this year is that the earnings test limit has increased to $62,160 in 2025 (last year, it was $59,520). Above this threshold, the SSA withholds $1 for every $3 you earn. If you’re still a few years away from reaching FRA, you’ll have $1 withheld for every $2 you earn above $23,400 (up from $22,320 in 2024).

Fortunately, the earnings test limit no longer applies in the month that you reach FRA. That means no deduction, no matter how much you earn.