Social Security will be 90 years old in 2025, and a lot has changed in that time. Every year the government makes adjustments to the program that, among other things, help generate higher tax revenues and increase benefits for retirees.

Next year will be no different. In just a few weeks, you’re facing five big changes. They may not all apply to you, but even one of them may have a significant impact on your performance now or in the future.

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1. 2.5% Cost of Living Adjustment (COLA)

The big Social Security news of the last few months has been the 2025 COLA, which was at 2.5%. This is below the 3.2% increase seen by retirees last year. The average monthly check is expected to rise from $1,927 to $1,976, allowing the typical beneficiary to spend $588 more over the course of the year.

However, some people may receive more than this amount if their current benefits are above average. The Social Security Administration is sending personalized COLA notices to all recipients this month with the exact benefit amount for 2025. So keep an eye out for it. If you have a My Social Security account, you can also view this notice in your Message Center.

2. Change in the definition of a social security credit

To be eligible for retirement benefits, you must earn 40 Social Security credits over the course of your career. A credit is a specific dollar amount of income on which you pay Social Security taxes throughout the year.

In 2024, you will earn one credit for every $1,730 of income and can earn a maximum of four credits per year. This will rise to $1,810 in 2025. However, most people are unlikely to notice this change. Even many part-time workers earn the $7,240 they would need to claim their four 2025 work credits.

3. Higher cap on Social Security payroll taxes

Currently, you only pay Social Security payroll taxes on the first $168,600 you earn in a year. The high limits mean that most people pay these taxes on their entire income, but that doesn’t apply to some of the wealthiest Americans.

In 2025, these individuals will have to pay slightly more because the Social Security payroll tax cap rises to $176,100. This could result in an additional $930 in taxes for self-employed individuals who pay both the employee and employer portions of the 12.4% Social Security tax. Traditionally employed workers paying just 6.2% could see their tax bill increase by up to $465 next year because of the increased tax limits.

4. Increased full retirement age (FRA)

Your full retirement age (FRA) is the age at which you are eligible to receive full Social Security benefits. The government assigns this to you based on your year of birth. For adults born between 1943 and 1954, it is 66. But the government has increased the FRA by two months per year in recent years.

In 2024 the FRA is 66 and 8 months, but in 2025 it will increase to 66 and 10 months. The same will happen in 2026, when the FRA for those born in 1960 and later reaches 67. But after that, FRA will remain stable, at least for the foreseeable future.

Note that you don’t have to wait until your FRA to claim benefits. You can apply as early as age 62, regardless of your FRA. However, if you file your claim early, your benefits will be significantly reduced. Therefore, it is worth considering all possible eligibility ages before deciding which is best for you.

5. Higher earning limits

Social Security’s earnings test withholds benefits under their FRA from workers who claim checks while earning income above a certain threshold. In 2024, you will lose $1 for every $2 you earn over $22,320. Those who reach their FRA in 2024 will lose $1 for every $3 they earn over $59,520 if they reach that amount before their birthday.

These caps will increase to $23,400 and $62,160, respectively, by 2025. This means these workers can earn a little more before money is withheld from their checks.

And if you’re worried, know that whatever the government deducts from your checks based on the earnings test isn’t lost forever. You get it back when you reach your FRA, and the government increases your benefit to make up for what it previously withheld.

Keep these Social Security changes in mind for the future, because you’ll see them again next year. The magnitude of the changes varies from year to year depending on inflation, but it’s pretty safe to assume that most of the numbers above will rise again in 2026.