We’re just a month away from a major Social Security announcement

Millions of older Americans today rely on Social Security to cover their living expenses. And chances are you’ll become at least somewhat dependent on those benefits once your career ends and retirement begins.

That’s why it’s so important to track Social Security. Although the program has been around for decades, it usually undergoes changes from year to year. And 2025 should be no exception.

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Meanwhile, many of the changes Social Security undergoes are based on changes in inflation. And on October 10, the Social Security Administration should be able to announce a number of key updates. Here’s what retirees and workers alike should expect to see next month.

1. An official COLA 2025

Each year, Social Security benefits are eligible for a cost-of-living adjustment (COLA). Beginning in 2024, seniors saw their monthly benefits increase by 3.2 percent. Unfortunately, the 2025 Social Security COLA is set to be lower than the 2024 COLA.

But that’s not a totally bad thing, even though it might seem that way. A lower COLA is a sure sign that inflation is cooling.

2. 2025 Earnings Test Limit

Seniors on Social Security have the right to earn income from a job while receiving benefits. But if you do this before you reach full retirement age, you will be subject to an earnings test limit. Exceeding these limits results in withheld benefits that are returned to you once you’ve reached your maximum retirement age — but you still have to wait to collect that money.

The earnings test limit for 2024 is $22,320, or $59,520 for seniors who have not yet reached full retirement age but will before the end of the year. Above these thresholds, working Social Security recipients should expect to have some of their benefits withheld. In 2025, the earnings test is expected to increase, so seniors on Social Security who want to work should have more freedom.

3. The maximum monthly benefit for the year 2025

In 2024, the maximum monthly Social Security benefit available to workers claiming full retirement age was $3,822. In 2025, this number should increase.

To qualify for the maximum monthly Social Security benefit, you generally must earn a high salary throughout your career and work for at least 35 years. But you should know that if you delay filing for Social Security past full retirement age, you can increase your monthly benefit even more.

4. The 2025 wage ceiling for social security taxes

Social Security relies on payroll tax revenue to operate. But workers don’t automatically pay Social Security taxes on every dollar they earn. Rather, there is a salary cap set each year to determine how much income is subject to Social Security taxes.

In 2024, the salary cap is $168,600. Next year, it’s expected to rise in line with inflation, so those with higher incomes should expect to pay more for the program.

Clearly, there will be a lot of Social Security information to unpack on October 10th. You may want to mark that date on your calendar and set aside some time to process these and other changes that are announced that Thursday.