In 2025, Social Security recipients will face several big changes.

But the biggest change may be yet to come, as the nation waits for President Joe Biden to sign newly passed legislation that would boost Social Security payments for millions of people.

The bipartisan bill ends long-standing cuts to Social Security benefits for nearly three million people who receive pensions from working in federal, state and local governments or from public service jobs such as teachers, firefighters and police officers.

But that’s not the only possible change we face.

This is what awaits you in 2025:

Cost of Living Adjustment

Every year, Social Security recipients receive what is known as a “cost adjustment,” or COLA.

In 2025, more than 70 million Americans will see a 2.5% cost-of-living adjustment on their checks.

For those wondering how this will change their benefits, notices have been posted and posted online this month to inform beneficiaries of the change.

Maximum taxable income

Every year, high earners face a tax deduction on their checks. This number, like the COLA, is adjusted annually to reflect changes in the cost of living.

In 2025, the Social Security tax cap will increase to $176,100. That’s up from $168,600 in 2024.

Full retirement age

While most people know that you can start collecting benefits as early as age 62, you are not eligible for full benefits until you reach what is known as “full retirement age.”

The full retirement age, also known as the “standard retirement age,” was 65 for many years until Congress passed legislation in 1983 to gradually raise the age.

The law increased the full retirement age for people born in 1938 or later, and the age was gradually increased by a few months for each year of birth until it reached 67 for people born in 1960 and later. This means that the final increase will take place in 2025.

In 2025, the full retirement age will increase by two months – to 66 or 10 months for people born in 1959.

According to the Social Security Administration, “if you delay taking your benefits from your full retirement age until age 70, your benefit amount increases,” the agency notes.

However, if you start drawing your pension early, your pension will be reduced every month until you reach full retirement age.

Full pension and benefits at age 62 based on year of birth

Year of birth 1.	Full (normal) retirement age	Months between age 62 and full retirement age 2.	At the age of 62 3.
			A $1,000 retirement benefit would be reduced to	The retirement benefit is reduced by 4.	The spousal benefit would be reduced to $500	The spouse’s pension is reduced by 5.
1943-1954	66	48	$750	25.00%	$350	30.00%
1955	66 and 2 months	50	$741	25.83%	$345	30.83%
1956	66 and 4 months	52	$733	26.67%	$341	31.67%
1957	66 and 6 months	54	$725	27.50%	$337	32.50%
1958	66 and 8 months	56	$716	28.33%	$333	33.33%
1959	66 and 10 months	58	$708	29.17%	$329	34.17%
1960 and later	67	60	$700	30.00%	$325	35.00%

What you should know about the Social Security Fairness Act

The law took decades to draft, but the push to pass it only came together in the last few weeks – and was completed in the final minutes – as lawmakers were in Washington before Congress resets next year. All Senate Democrats and 27 Republicans voted for the bill, for a final vote of 76-20.

“Millions of retired teachers, firefighters, mail carriers and state and local workers have waited decades for this moment. Public retirees will no longer see their hard-earned Social Security benefits stripped away,” said Senate Majority Leader Chuck Schumer, D-N.Y.

The bill repeals two provisions – the Windfall Elimination Provision and the Government Pension Offset – that limit Social Security benefits to certain recipients if they receive pension payments from other sources, such as a state or local government’s public pension program.

People whose Social Security benefits are currently being reduced under the exemptions would soon see an increase in their monthly payments. However, according to the Congressional Budget Office, these increased payments would also increase the federal deficit by an estimated $195 billion over ten years.