Social Security’s cost of living adjustment (COLA) for 2025 is 2.5% adding $49 to the average monthly check. While this increase is modest it’s still helpful for some seniors. However a special group of Social Security recipients could see an extra benefit increase this year. thanks to changes in the Social Security Benefits for Workers in 2025 earnings test limits.
check out the related benefits on our article The Impact of the 2025 COLA on Retirement Payments
Social Security Benefits for Workers in 2025 Earnings Test Limits
In 2025 Social Security has raised the earnings test limits which means beneficiaries can earn more before their benefits are reduced. Here is a comparison of the 2024 and 2025 earnings limits and how much money will be withheld from benefits
| Year | Earnings Limit (Under FRA) | Amount Withheld for Every $2 Earned Over Limit | Earnings Limit (Reached FRA) | Amount Withheld for Every $3 Earned Over Limit |
| 2024 | $22,320 | $1 withheld for every $2 over limit | $59,520 | $1 withheld for every $3 over limit |
| 2025 | $23,400 | $1 withheld for every $2 over limit | $62,160 | $1 withheld for every $3 over limit |
Bigger Gains for Those Reaching Full Retirement Age
The money withheld due to the earnings test is not lost forever. Once workers reach their FRA then the Social Security Administration recalculates their benefits to account for any money withheld earlier potentially boosting their monthly check. For workers who reach FRA in 2025 they could see a larger boost due to this adjustment.
It is important to note that the amount withheld depends on each person’s situation. Those curious about their specific case can contact the Social Security Administration for personalized guidance.
Planning for the Future
The earnings test limits are adjusted annually, so if you don not reach your FRA this year then you could see even more favorable adjustments in the future. It is something to keep in mind as you plan your retirement and future budgets.
FAQs
1. What is the earnings test for Social Security?
The earnings test is a rule that reduces your Social Security Benefits for Workers in 2025 if you earn more than a set amount before reaching full retirement age (FRA).
2. How much can I earn before Social Security Benefits for Workers in 2025 are reduced?
In 2025, if you’re under FRA, you can earn up to $23,400 without having benefits withheld. If you reach FRA during the year, the limit is $62,160.
3. Can I get my withheld benefits back?
Yes! Once you reach your FRA, the Social Security Administration will recalculate your benefits and possibly increase your check if they withheld any money due to the earnings test.