When it comes to Social Security in 2025, simply waiting to retire won’t cut it anymore. With changes like a 2.5% COLA increase and the repeal of WEP and GPO, there are real opportunities to increase what you get from the system. Whether you’re already retired, about to claim, or still a few years out, learning how to work the rules in your favor can mean more money in your pocket every month.
Increase
Let’s start with the 2025 Cost-of-Living Adjustment. Social Security recipients will see a 2.5% raise, bumping the average monthly benefit from $1,927 in 2024 to $1,976 in 2025. It’s not the biggest jump ever, but it still helps fight inflation and keep your income strong. Every extra dollar counts—especially when you’re on a fixed income.
Timing
If you want to get the most from Social Security, when you claim your benefits matters—a lot.
Here’s how it works:
- Claim at 62 and your check could be 30% smaller than if you waited.
- Wait until age 70, and you could get up to 24% more than at full retirement age (FRA).
- Every year you wait after FRA, your benefit grows by about 8%.
Delaying isn’t always possible, but if you can hold off, it often pays off big.
Work
Another key strategy? Work for at least 35 years. Social Security bases your benefit on your highest 35 years of earnings. Got fewer than 35? Zeros get averaged in. That hurts. Even part-time work in retirement can raise your average and increase your future checks.
You can also increase your earnings in the years before you retire. Since your benefit is tied to your income, earning more today helps tomorrow. Think side gigs, overtime, or asking for a raise—it all helps.
Limits
Planning to work while collecting benefits? Watch the earnings limits in 2025:
| Age & Timing | Earnings Limit | Benefit Reduction |
|---|---|---|
| Before FRA | $23,400 | $1 deducted for every $2 over |
| Year you reach FRA | $62,160 | $1 deducted for every $3 over |
Once you hit FRA, these limits vanish. No more benefit cuts based on earnings.
Spouses
Spousal and survivor benefits are one of Social Security’s most underused features. If your spouse earned more, or you never worked, you might still be eligible.
- Spousal benefits: Up to 50% of your spouse’s benefit at FRA.
- Survivor benefits: Up to 100% of what your deceased spouse received.
Coordinating claims with your spouse can increase your total household benefit dramatically.
Records
Ever checked your earnings history with the Social Security Administration? You should. Errors in your record can cost you real money. Log in at ssa.gov and review your yearly income. If something looks off, file a correction with documentation. Better to fix it now than get shorted later.
Repeal
The biggest legislative change this year? The repeal of the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO), thanks to the Social Security Fairness Act passed in January 2025.
This law impacts millions of retired public workers—teachers, police, and others who had their benefits reduced due to their pensions. With WEP and GPO gone:
- Monthly benefits are rising, in some cases by over $1,100.
- Retroactive payments averaging $6,710 are being sent out.
If you were previously penalized by WEP or GPO, contact Social Security right away to see if you’re owed back pay.
RMDs
If you’re 73 or older in 2025, don’t forget your Required Minimum Distributions (RMDs). These must be taken by April 1, 2025, from your traditional IRA or 401(k). Miss it? You could be hit with a 25% penalty. That’s not small change.
Also, poorly timed withdrawals might push you into a higher tax bracket, making your Social Security taxable. A tax pro can help you plan this right.
Advice
Finally, a Certified Financial Planner (CFP) can help pull all of this together. From optimizing your Social Security start date to mapping out retirement account withdrawals, their advice can easily pay for itself. A few smart moves now can add up to thousands more over your retirement years.
FAQs
What is the 2025 COLA increase?
It’s a 2.5% raise in Social Security benefits.
What’s the FRA in 2025?
It’s usually age 66 to 67, depending on your birth year.
How do delayed credits work?
Benefits grow 8% yearly if you delay past FRA, up to age 70.
Who gains from WEP and GPO repeal?
Retired public workers like teachers and police officers benefit.
What’s the 2025 earnings limit?
$23,400 before FRA and $62,160 in the year you reach FRA.
