What All Retirees Need to Know About Social Security in 2025

Social Security has been around for nearly 90 years, and a lot has changed in that time. Average benefits have increased significantly, and the government has instituted key rule changes that affect how much retirees take home today. The program also undergoes a series of routine annual adjustments, including cost-of-living adjustments (COLAs) each year.

Because of this, it's easy to get confused about how the program works, especially when some of its more obscure rules come into play. Here's a quick refresher on the most important Social Security details in 2025.

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Your claiming age has a massive effect on your checks

Choosing your Social Security claiming age strategically is one of the best decisions you can make to maximize your benefit. The government assigns everyone a full retirement age (FRA) based on their birth year. This is 67 for most workers today, but some older adults have FRAs as young as 66.

You don't have to apply then, though. You can apply as early as 62 or at any point thereafter, though most apply by 70 at the latest. That's when you qualify for your largest possible checks.

Every month you delay Social Security increases the size of your benefit, and the increases get faster over time. Put another way, you can reduce your FRA benefit by up to 30% if you claim immediately at 62. You can also grow your FRA benefit by up to 32% by waiting until 70 to apply.

The right claiming age for you depends on your finances and your life expectancy. Those who can't afford to delay and those with short life expectancies generally benefit the most from applying early, while those with longer life expectancies and personal savings to fall back on could get a bigger lifetime benefit by delaying their application.

You could qualify for spousal benefits even if you never worked

Seniors may qualify for Social Security retirement benefits if they worked long enough to earn 40 credits (where one credit is defined as $1,810 in earnings in 2025), and you can earn a maximum of four credits per year. Married individuals may also qualify for a spousal benefit if their partner worked long enough to qualify for retirement benefits.

A spousal benefit is worth up to one-half of what the worker qualifies for at their FRA. For example, if the worker qualifies for a $2,000 monthly benefit at their FRA, their partner's maximum spousal benefit would be $1,000 per month.

But here again, claiming age matters. Claiming early carries even steeper penalties for spouses, and your benefits stop increasing once you reach your FRA. You also can't apply for spousal benefits until your partner has signed up for Social Security.

The Social Security Administration automatically gives you the larger of your own retirement benefit or your spousal benefit. However, if you apply first, you may have to contact the Social Security Administration when your spouse signs up, to see if their spousal benefit would give you more than what you're currently receiving.

The earnings test withholds money from some early claimers

Those who apply for Social Security under their FRA could lose even more from their checks if they're still working and their income exceeds certain limits. In 2025, you lose $1 for every $2 you earn over $23,400 if you're under your FRA all year. If you'll reach your FRA in 2025, you only lose $1 for every $3 you earn over $62,160.

This money comes back to you as a benefit increase at your FRA. Once you reach this age, you won't have money withheld due to the earnings test anymore, regardless of your income.

It's possible that some high earners may not get anything from Social Security because of this earnings test. If you think this could happen to you and you haven't applied yet, consider delaying your Social Security application until you retire.

More Social Security changes are coming

The government passed the Social Security Fairness Act last month, which will increase benefits for 3.2 million Americans. This mostly applies to former government workers, teachers, police officers, and firefighters and their spouses who had money withheld under two now-eliminated Social Security provisions. This change is expected to increase some people's monthly checks by $1,000 or more per month, though right now we don't know when this will take effect.

It's likely to be at least another year until anyone sees extra money under the Social Security Fairness Act. If you think this may affect you, make sure the Social Security Administration has your updated address and banking information. Then, keep an eye out for future updates.

We're also a few years away from more substantial Social Security changes. The program's trust funds are expected to be depleted in 2034. This could lead to benefit cuts, though the government will almost certainly take steps to increase its funding before that happens. We don't know what the final fix will look like, but whenever the government sorts it out, all retirees will likely have to take a look at their budgets to see what their Social Security benefits will cover going forward.

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