Social Security is undergoing significant reforms in 2025, affecting millions of Americans. From administrative overhauls to benefit recalculations, these changes could impact your retirement income. However, by understanding the new landscape and implementing strategic steps, you can enhance your Social Security benefits despite the ongoing transformations.
Key Changes to Social Security in 2025
Full Retirement Age (FRA) Adjustment
For individuals born in 1959, the Full Retirement Age (FRA) has increased to 66 years and 10 months. This is part of a gradual shift that began in 1983 to account for longer life expectancies. Claiming benefits before reaching FRA can lead to reduced monthly payments, while delaying benefits can result in higher payouts due to delayed retirement credits.
Cost-of-Living Adjustment (COLA)
Beneficiaries will see a COLA increase in 2025, aimed at countering inflation. This adjustment applies to all recipients, including those who haven’t yet started collecting benefits.
Maximum Taxable Earnings Increase
The maximum amount of earnings subject to Social Security tax has risen from $168,600 in 2024 to $176,100 in 2025. This means higher earners will contribute more, potentially increasing their future benefits.
Strategies to Increase Your Social Security Check
Delay Claiming Benefits
While you can start receiving Social Security benefits at age 62, doing so will permanently reduce your monthly payments. Delaying benefits until your FRA or even up to age 70 can significantly increase your monthly income. For each year you delay past your FRA, your benefit increases by approximately 8%.
Work Longer and Earn More
Social Security benefits are calculated based on your highest 35 years of earnings. If you have fewer than 35 years of work, zeros are factored into the calculation, lowering your benefit. Continuing to work can replace these zeros or lower-earning years with higher income, boosting your average earnings and, consequently, your benefits.
Maximize Earnings Up to the Taxable Limit
In 2025, only the first $176,100 of your earnings are subject to Social Security taxes. Earning up to this limit ensures you’re contributing the maximum amount, which can lead to higher benefits upon retirement.
Coordinate Spousal Benefits
Married couples can strategize to maximize their combined benefits. For instance, one spouse can claim a spousal benefit, which is up to 50% of the other spouse’s FRA benefit. Additionally, delaying the higher-earning spouse’s benefits can increase survivor benefits for the other spouse.
Monitor Your Earnings Record
Regularly check your earnings history for accuracy, as errors can affect your benefit amount. You can review your record by creating a “my Social Security” account at the official Social Security website.
Consider a ‘Do-Over’ if Applicable
If you’ve started receiving benefits but wish to increase them, you have two options:
- Withdraw Your Application: If it’s been less than 12 months since you started receiving benefits, you can withdraw your application, repay the benefits received, and reapply later for a higher benefit.
- Suspend Benefits: If you’ve reached FRA but are under 70, you can suspend your benefits to earn delayed retirement credits, increasing your monthly payments when you resume them.
Utilize Roth Accounts for Tax Efficiency
While contributing to a Roth IRA or Roth 401(k) doesn’t directly increase your Social Security benefits, withdrawals from these accounts are tax-free and don’t count as income for Social Security purposes. This can help you retain more of your benefits by potentially reducing taxation on them.
Navigating Administrative Changes
The Social Security Administration (SSA) has undergone significant changes, including staffing reductions and office closures, leading to service delays. Nearly a million beneficiaries are still awaiting payments promised under the Social Security Fairness Act of 2023.
To mitigate potential delays:
- Apply Early: Submit your application up to four months before you wish to start receiving benefits.
- Maintain Communication: Stay in contact with the SSA to monitor your application’s progress.
- Seek Assistance: If you encounter issues, consider reaching out to community resources, legal professionals, or your local congressional representative for help.
Final Thoughts
Despite the ongoing changes within the Social Security system, proactive planning and informed decisions can help you maximize your benefits. By understanding the new rules, delaying benefits when possible, and ensuring your earnings record is accurate, you can secure a more comfortable retirement. For personalized advice, consider consulting with a financial advisor or visiting the official SSA website for more information.