7 Biggest Social Security Changes Coming in 2025, part 3

7. Social Security earnings test

Social Security applies an earnings test to beneficiaries who have not yet reached full retirement age (FRA). People who collect retirement, survivor or family benefits before reaching that milestone and continue to work may temporarily lose a share of their Social Security benefits if their earnings exceed a certain level.

That threshold changes annually, tracking wage trends. In 2025, beneficiaries who will not reach FRA until a later year have $1 withheld from their Social Security payment for every $2 in work income above $23,400 (up from $22,320 in 2024). For example, if you earn $40,000 from work in 2025, your benefits for the year would be reduced by $8,300 — half the difference between $23,400 and $40,000.

The earnings test eases in the year you reach FRA: Social Security holds back $1 in benefits for every $3 in earnings above $62,160 (up from $59,520 in 2024) until the month when you hit the milestone. At that point, the test goes away: There’s no longer any benefit deduction, no matter how much you earn, and the SSA adjusts your monthly payment upward. Over time, you recoup the prior withholding.

There are different income rules for people receiving Social Security Disability Insurance (SSDI). Disability benefits are intended for people who are largely unable to work for an extended period due to a serious medical condition. You can lose these benefits if your earnings reflect what the SSA calls “substantial gainful activity.”

In 2025, that threshold is $1,620 a month for most SSDI beneficiaries. This is a $70 increase from 2024. People receiving SSDI on the basis of blindness are subject to a higher income limit: $2,700 a month in 2025, $110 more than in 2024.

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