Social Security benefits to increase and earnings limits to rise in 2025

Social Security will see two significant changes in 2025. First, benefits will increase by 2.5%, raising the average monthly payment from $1,927 to $1,976. This adjustment reflects a cooling inflation rate but may not fully offset rising costs for many retirees. Second, the earnings limits for those collecting benefits while working will rise. For early filers, the limit will increase to $23,400, up from $22,320. For those reaching full retirement age in 2025, the limit will rise to $62,160, compared to $59,520 in 2024. These updates aim to provide more financial flexibility for retirees. The changes allow for increased earnings without as much penalty, benefiting those who choose to work while receiving Social Security.