For those nearing retirement age or already receiving Social Security benefits, it’s important to stay up to date on any changes to how those benefits are paid out.
For many Americans, Social Security is an essential part of their income, so any changes to the program can affect their quality of life.
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New changes are coming in 2025, and they’re slated to affect both the payments beneficiaries receive and the qualifications they’ll need to access those benefits.
Keep reading for a look at how Social Security is changing and what you need to know to be prepared.
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One of the biggest changes coming in 2025 is an adjustment to the earnings threshold you need to reach to earn Social Security credits.
The system currently requires American workers to earn $1,730 for each work credit, but this will rise to $1,810 in 2025.
While workers can accrue up to four credits each year, this incremental change reflects adjustments related to inflation and average wage growth.
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If you’re a full-time worker, you don’t need to be concerned about these changes. If you’re working 40 hours per week over a standard 50-week work year, even at minimum wage, you’re sure to earn the maximum four credits.
However, it might be a different story if you’re a part-time worker who might struggle to accumulate enough credits.
You’ll want to carefully review these changes and predict the amount you’re likely to earn in 2025 to determine whether the changes might affect you.
Remember, while the work credits are used to determine your eligibility for benefits, they don’t affect the actual amount you receive.
Social Security credits establish only your eligibility for retirement, disability and survivors’ benefits and whether you qualify for Medicare, but they have no role in calculating the amount of your payments.
How earned credits are calculated isn’t the only change coming in 2025. The Social Security cost-of-living adjustment will be slightly different, too.
Those who receive Social Security benefits will see only a 2.5% increase in the amount paid out each month, which is a smaller bump than in previous years.
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