3 ways you could get more Social Security benefits in 2025

Most older adults rely to some extent on Social Security in retirement. 88 percent of current retirees say they depend on their benefits, according to a 2024 Gallup poll, while 60 percent of that group say their checks are a major source of income.

Maximizing your benefits is a smart move, and there are plenty of options to increase your payments — from waiting a few years to claim, to increasing your income, to taking advantage of resources like spousal or divorce benefits.

Sometimes, though, earning more of your benefits is as simple as waiting for a new year. There will be some changes to the program starting in 2025, some of which can get you bigger payouts without you lifting a finger.

Image source: Getty Images.

1. A new cost of living adjustment (COLA) is coming.

Next month, the Social Security Administration will announce the COLA for 2025. The latest estimate for next year’s adjustment is 2.5 percent, according to a mid-September forecast by the nonprofit advocacy group The Senior Citizens League.

If this prediction is accurate, it will be the lowest since 2021 — which saw an adjustment of just 1.3%. However, even small COLAs can increase benefits.

The average amount of benefits among retired workers is about $1,900 per month, according to August 2024 data from the Social Security Administration. If the COLA does indeed reach 2.5%, the average retiree would see their benefits increase by about $48 a month starting in January 2025.

2. The maximum benefit is likely to increase

There is a limit to how much you can collect from Social Security, and in 2024, the maximum benefit is $4,873 per month.

The maximum payout does not always increase from year to year. Between 2018 and 2020, for example, it fell steadily from $4,647 per month to $4,561 per month, and there was also a slight decrease between 2022 and 2023. However, in most years there was at least one slight increase of the maximum possible. benefit.

Data source: Social Security Administration. Table by author.

To get the biggest payouts possible, there are three requirements you must meet: work at least 35 years, delay claiming benefits until age 70, and consistently reach the maximum taxable earnings limit . This limit is the highest income subject to Social Security taxes, and for 2024, it is $168,600 per year.

The average worker probably won’t be on track to earn the maximum benefit, and that’s okay. But if you’re one of the few who can meet all three of those benchmarks, there could be a bump in store for 2025.

3. The earnings test limit is likely to increase

For those who continue to work after taking Social Security, your wages may be subject to the earnings test limit. If you’re below full retirement age and your earnings exceed a certain limit, your benefits will be temporarily withheld — and the more you earn, the more severe the cuts.

The good news for 2025, though? These limits increase most years, meaning you can earn more before facing benefit cuts.

Data source: Social Security Administration. Table by author.

For example, let’s say you’re under full retirement age and you earn $30,000 a year from your job. In 2024, that would mean a reduction of $3,840 per year or $320 per month. But in 2022, assuming you still earn $30,000 a year, that income would have resulted in a reduction of $5,220 a year, or $435 a month.

Now, these reductions are only temporary, and you’ll start receiving adjusted payments once you reach full retirement age. But in the meantime, higher earnings limits can help you keep more of your benefits if you keep working.

While we won’t know exactly what 2025 has in store until next month, when the Social Security Administration releases its latest updates, retirees are likely to have some opportunities for bigger checks. And if you’re counting on your retirement benefits, every dollar counts.