In 2025, Social Security benefits saw two key changes that may affect those still working: a higher wage cap and increased work credits.
1. **Wage Cap Increase**: The wage cap rose from $168,600 to $176,100, meaning higher earners will pay more in Social Security taxes on an extra $7,500 of income. While this could strain the program, experts advise those affected to consider retirement accounts like IRAs or health savings accounts to minimize tax impacts.
2. **Rising Work Credits**: The value of each work credit increased from $1,730 to $1,810. To qualify for Social Security benefits based on earnings, individuals need 40 credits (maxing out at 4 per year). This change could make it harder for part-time workers or those with limited income opportunities to qualify.
For workers concerned about these changes, switching to gig work or maximizing retirement savings can help navigate the new rules. Both changes are unlikely to benefit retirees but may impact those still working actively.
Source: https://www.fool.com/retirement/2025/01/26/2-social-security-changes-that-could-hurt-you-fina