Big updates are coming to Social Security in 2025, and they will impact both people receiving benefits and those paying into the system. While most middle-income Wisconsinites won’t see major changes, workers at the highest and lowest income levels will feel the effects. Additionally, a cost-of-living adjustment will impact all 1.2 million Wisconsin residents currently receiving Social Security. Let’s break down what’s changing.
Social Security Wage Cap Rises to $176,100
Each year, there’s a limit on how much of a person’s earnings are subject to Social Security taxes. In 2025, that wage cap is increasing from $168,600 to $176,100. Workers earning at or above this new threshold will pay up to $10,918 in Social Security taxes, about $465 more than in 2024.
However, any earnings above $176,100 are not taxed for Social Security. That means someone earning $1 million per year will pay the same amount in Social Security taxes as someone making $176,100.
Since Wisconsin’s median household income was $75,670 in 2023, most residents won’t be affected by this wage cap increase.
Work Credit Requirements Are Changing
To qualify for Social Security retirement benefits, workers must earn 40 work credits over their lifetime. Each year, people can earn up to four credits, depending on their earnings.
In 2024, one credit required $1,730 in earnings. But in 2025, that number increases to $1,810 per credit. This means that workers must earn $7,240 in 2025 to get all four credits, up from $6,920 in 2024.
This change primarily affects part-time workers and full-time caregivers who may have lower annual earnings.
Full Retirement Age Increases Again
Social Security allows people to claim benefits as early as age 62, but full benefits are only available at “full retirement age” (FRA), which is gradually increasing.
For those born between May 2, 1958, and February 28, 1959, the full retirement age in 2025 is 66 years and 10 months.
Here’s a breakdown of FRA based on birth year:
- 1955: 66 years, 2 months
- 1956: 66 years, 4 months
- 1957: 66 years, 6 months
- 1958: 66 years, 8 months
- 1959: 66 years, 10 months
- 1960 & later: 67 years
Delaying Social Security claims can increase monthly payments significantly. For example, in 2024, a person who retired at age 62 could receive up to $2,710 per month, while someone waiting until age 70 could get as much as $4,873 per month.
2025 Cost-of-Living Adjustment (COLA)
Social Security payments are getting a 2.5% cost-of-living increase in 2025 to help beneficiaries keep up with rising expenses.
This increase is smaller than in recent years:
- 2023 COLA: 8.7%
- 2024 COLA: 3.2%
- 2025 COLA: 2.5%
For the average recipient, monthly benefits will increase by about $50, rising from $1,907 in 2024 to $1,957 in 2025.
Social Security Payment Schedule for 2025
Social Security checks are sent out based on the recipient’s birth date:
- Born on the 1st–10th: Paid on the second Wednesday of the month
- Born on the 11th–20th: Paid on the third Wednesday
- Born on the 21st–31st: Paid on the fourth Wednesday
For Supplemental Security Income (SSI) recipients, payments are issued on the first of each month.
Conclusion
Wisconsin Social Security recipients should prepare for these 2025 changes, especially the wage cap increase, work credit adjustments, and cost-of-living boost. While most middle-income workers won’t see major changes, those earning near the cap or just entering the workforce may need to adjust their financial planning. Keeping up with Social Security updates ensures you maximize your benefits and understand how these shifts impact you.