SSA Earning Limits Updates: Check Maximum Amount & Impact on Retirement Plan

SSA Earning Limits Updates: In 2025, there will be significant changes to Social Security, especially with regard to the wage restrictions, which affect both those who are now working and those who are approaching retirement. The beneficiaries will have to understand how these modifications may impact their income if they are nearest full retirement age (FRA) or are still working and receiving Social Security benefits. To begin with, there will be an increase in the maximum wages that are subject to Social Security tax.

The taxable limit is scheduled to rise from $168,600 in the year 2024 to $176,100 in the year 2025. This implies that, in comparison to prior years, you will be paying Social Security tax on a higher percentage of your income if you make more than $176,100 in the year 2019. Higher incomes will therefore see a larger portion of their income subject to the 6.2% Social Security tax.