In 2025, several significant changes are coming to Social Security, aside from the 2.5% cost-of-living adjustment (COLA). Beginning January 6, 2025, individuals seeking assistance from a field office will be required to schedule an appointment. This change affects those who need help with their benefits.
The maximum annual earnings subject to the Social Security portion of the FICA tax will also increase to $176,100, affecting high-income earners. Additionally, the threshold for earning one Social Security credit will rise to $1,810, impacting workers who haven’t already qualified for retirement benefits.
For early retirees continuing to work, the earnings limits will increase in 2025. Those born between 1958 and 1959 will have a full retirement age of 66 years and eight months or 10 months more than their birth year, respectively. The FRA has been increasing by two months annually for several years.
While some changes may not affect everyone, the increase to $1,810 for earning one Social Security credit is significant. This threshold change will impact every worker who hasn’t already qualified for retirement benefits, as they must earn at least 40 credits to qualify.
In the long term, Social Security faces insolvency in 2035 unless reforms are made. Significant changes beyond 2025 are likely needed to avoid this scenario.
Source: https://finance.yahoo.com/news/heres-arguably-most-important-social-094500183.html