The Surprising Social Security Change You May Have Missed in 2025

People who collect Social Security, or who are gearing up to retire, tend to pay attention to one key aspect of the program -- cost-of-living adjustments, or COLAs. Those tend to be all over the news because they have a direct impact on seniors' buying power from year to year.

In 2025, Social Security benefits received a 2.5% COLA. That happened to be the smallest raise to arrive in years, though, so it left a lot of older Americans disappointed.

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But another Social Security rule changed for the better in 2025, making it possible for seniors to boost their retirement income. Here's what you need to know in case you missed it.

The earnings test limits went up

A late 2024 survey by Resume Builder found that 13% of retired seniors were making plans to work in 2025. And while the top reason for that is rising living costs, boredom is another big factor that's pushing older Americans to get jobs.

You should know that once you reach your full retirement age, you can earn any amount of money without having it negatively impact your monthly Social Security benefits. But if you're working before having reached full retirement age and you're on Social Security, you'll be subject to an earnings test limit. And exceeding it could result in having benefits withheld.

The good news, though, is that the earnings test limits increased in 2025 compared to 2024. This means that if you're working while on Social Security, you get the leeway to earn a little more money before losing a portion of your benefits temporarily.

The general earnings test limit in 2025 is $23,400, up from $22,320 in 2024. Beyond that point, you'll have $1 in Social Security withheld per $2 of earnings.

The earnings test limit is much higher for people who will reach full retirement age this calendar year. In that case, it's $62,160, up from $59,520 in 2024. Beyond that point, you'll have $1 in Social Security withheld per $3 of earnings.

What happens to those withheld benefits?

You'll notice that if you exceed the earnings test limit for your age, your Social Security benefits won't be further reduced. Rather, a portion of those benefits will be withheld until you reach full retirement age. At that point, your monthly benefits will start to increase.

As a point of clarity, though, Social Security income withheld due to exceeding the earnings test limit won't be paid back to you in a single lump sum at full retirement age. Rather, you'll receive higher monthly benefits to account for the money that was withheld.

All told, a boost to Social Security's earnings test limits is a change that may have flown under your radar this year. But if you're collecting Social Security and are thinking of going back to work, or if you're already working part-time, then it's an important update to be aware of.

And if you're not yet retired but are on the cusp, it's also good to know what the earnings test limits look like in case you expect to be working and collecting Social Security at the same time before your full retirement age.

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