3 huge Social Security changes in 2025 we should hear about on October 10

Many people are excited for October because they love all things fall and can’t wait to celebrate Halloween. But there’s another reason to be glad that October is just around the corner.

On October 10, the Social Security Administration (SSA) is set to announce a number of key changes to the program — changes that could have an impact even if you’re not yet collecting benefits. Here are three key updates we should get that day.

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1. Social Security’s 2025 Cost of Living Adjustment (COLA).

For months, there has been speculation about next year’s Social Security COLA. Based on year-to-date inflation readings, the latest nonpartisan Senior League estimate pegs the 2025 COLA at 2.5 percent. However, this number could move up or down depending on the evolution of inflation in September.

Of course, getting an official COLA from the SSA is only part of the story. If you’re a Social Security recipient, you may not really know how much more money to expect from your monthly benefit payments until Medicare announces the standard Part B premium for 2025.

This is because seniors who are enrolled in both programs at the same time have their Part B premiums automatically deducted from their Social Security benefits. So even if you end up getting some raise thanks to a future COLA, a Medicare cost increase could unfortunately wipe out a decent chunk of it.

2. Social Security’s 2025 income testing limit

Seniors can earn money from a job while receiving monthly Social Security benefits. And once you reach full retirement age, you can earn any amount of money without it negatively affecting those monthly payments.

But if you work and receive Social Security before you reach full retirement age, you’ll be subject to an earnings test limit. Exceeding this limit generally results in some of your benefits being withheld.

Now, the good news is that the withheld benefits are paid back to you once you reach retirement age. But it’s important to know how much money you can make from a job before this scenario occurs.

The current limit for the earnings test is $22,320, or $59,520 for those who have not yet reached full retirement age but will before the end of 2024. These figures are expected to rise in 2025 in line with inflation, but you’ll want to pay attention to the specific limit that applies to you.

3. the salary ceiling of social insurance

Social Security is funded by payroll taxes. But workers don’t automatically pay those taxes on every dollar they earn.

Each year, a salary ceiling is established for Social Security tax purposes, and income above this ceiling is exempt. The current salary cap is $168,600. But like the earnings test limit, that number is expected to rise in 2025 to account for inflation and rising wages. This means higher earners should prepare to lose more of their wages. If you think you fall into that category, you may want to sit down with a tax professional to discuss strategies to minimize your overall IRS burden.

Millions of Americans of all ages have the potential to be affected by these big Social Security changes. If that includes you, you’ll definitely want to check out the SSA website on October 10th to officially read about them.