Social Security is often a topic of controversy, with warnings about its potential bankruptcy or drastic cuts. However, this year brought three positive changes to the program.
One change is a 2.5% cost-of-living adjustment (COLA), which helps keep benefits pace with inflation. This increase might seem bad news at first, but it’s actually a better outcome than no COLA at all in past years. A smaller COLA also indicates cooling inflation, providing relief for seniors.
Another change is an increased earnings-test limit. This allows seniors to earn more money from work without risking benefits being withheld. The new limits are $23,400 for the general test and $62,160 for those reaching full retirement age in 2025.
Lastly, Social Security’s maximum monthly benefit at full retirement age increased to $4,018 this year, but can reach $5,108 if delayed until age 70 or meeting other criteria. While eligibility for the maximum benefit is rare, this increase provides more options for seniors.
These positive changes show that lawmakers are working to support Social Security. As we look ahead, it’s possible that future changes could address concerns about the program’s finances and eliminate potential cuts.
Source: https://www.fool.com/retirement/2025/01/31/3-positive-social-security-changes-that-arrived-in