Advisers, Take Note: How 2025 Social Security Changes May Impact Your Clients
What financial advisers might need to know to help their clients navigate Social Security in 2025.


Social Security is a vital part of financial planning, yet its evolving guidelines make it a moving target for clients and advisers alike.
For 2025, several key changes to Social Security policies are set to shape retirement, disability and income planning. Understanding these updates will help you offer informed advice, help maximize client benefits and build trust in your advisory practice.
Here’s a breakdown of the latest changes, their implications and actionable strategies to get ahead.
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2025 Social Security changes at a glance
Here are some of the most significant updates to Social Security policies for the coming year:
Cost-of-living adjustment (COLA). Benefits will see a 2.5% increase in 2025, reflecting inflation’s impact on purchasing power.
Taxable earnings threshold. The maximum income subject to Social Security taxes rises to $176,100, from $168,600.
Retirement earnings limits:
- Workers under full retirement age can earn up to $23,400 per year without reductions in benefits — a $1,080 increase from 2024.
- Those who reach full retirement age in 2025 can earn up to $62,160 per year before penalties apply.
- Workers who have already reached full retirement age have no earnings limits.
Disability income changes:
- Monthly earnings thresholds for substantial gainful activity (SGA) have risen to $1,620 for non-blind individuals and $2,700 for blind individuals.
- The trial work period (TWP) earnings threshold increases to $1,160 a month.
Supplemental Security Income (SSI). Federal payments increase to $967 a month for individuals and $1,450 a month for couples.
How these changes could affect clients
Each of these adjustments carries implications for your clients’ financial plans, whether they’re retirees, disabled individuals or part of low-income households.
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Retirees. For retired clients, the COLA increase is welcome news. On average, retirees will see monthly benefits rise from $1,927 to $1,976. While this increase may ease inflationary pressures, advisers should urge caution — it won’t drastically alter financial stability.
For high-earning retirees under full retirement age, the updated earnings limits are essential to note. Mismanaging these thresholds could trigger a reduction in benefits, impacting short-term liquidity.
Individuals with disabilities. Clients with disabilities will benefit from higher SGA and TWP thresholds. These updates make it easier for clients to earn income while retaining their eligibility for benefits.
However, the incremental increases in monthly SSDI payments may leave many still struggling to cover rising health care costs.
Families with low incomes. For individuals relying on SSI, even small increases in payments — from $943 to $967 for individuals — can provide meaningful yet modest relief.
However, advisers should emphasize the static resource limits — $2,000 for individuals and $3,000 for couples — making careful financial planning critical to avoid disqualifications.
High earners and self-employed clients. With the taxable income ceiling increasing to $176,100, high earners and entrepreneurs will pay slightly more into the system. Advisers should explore the trade-offs, balancing the immediate tax impact with the potential for higher lifetime benefits.
Adviser strategies to navigate 2025 changes
Proactive retirement planning. Help clients avoid benefit penalties by carefully timing income streams:
- For retirees under full retirement age, stagger part-time work or side hustles to stay within the updated $23,400 earnings limit.
- Help high earners approaching full retirement age weigh the pros and cons of accelerating or deferring income.
- For retirees at full retirement age, remind them that earning limits no longer apply — making it a good time to boost income with consulting or part-time work.
Optimize disability benefits. Encourage clients with disabilities to use their TWP wisely. With earnings up to $1,160 a month excluded from counting toward benefit reductions, this is a great window for test-driving work opportunities without losing eligibility.
Likewise, advise clients earning below the updated SGA thresholds ($1,620 non-blind; $2,700 blind) to balance work and benefits for maximum stability.
Strengthen tax strategies. For high earners and self-employed clients:
- Explore tax shelters or retirement contributions to stay below the $200,000/$250,000 thresholds where the additional Medicare tax known as IRMAA applies.
- Discuss the impact of higher taxable earnings on Social Security contributions and long-term benefits, especially for those nearing their highest-earning years.
Educate and empower clients. Clients may find these changes overwhelming, so it’s crucial to deliver support in simple terms. Consider:
- Hosting workshops or webinars to explore Social Security topics, from COLA adjustments to disability thresholds.
- Offering personalized financial scenarios to reflect how 2025’s updates will directly shape their outcomes.
For many, Social Security is more than just a retirement benefit — it’s a lifeline. Taking the time to clarify changes positions you as a trusted advocate, boosting client confidence in your guidance.
Key takeaways
Stay ahead of policy shifts. Social Security changes are predictable but significant. The more advisers stay informed, the better they can serve clients across demographics.
Tailor strategies for diverse needs. From retirees managing post-COLA budgets to disabled individuals navigating work opportunities, client-specific advice is key.
Educate clients early. Don’t wait for clients to ask about Social Security changes — proactively address updates during annual reviews or routine check-ins.
Partner with tax experts. For high-income clients, integrating tax strategies with Social Security planning counters higher payroll ceilings and helps maximize net benefits.
By understanding Social Security updates and tailoring strategies to meet client goals, advisers can turn potential challenges into opportunities — helping to ensure long-term financial wellness for those they serve.
Investing involves risk, including the potential loss of principal. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims-paying abilities of the issuing carrier. Our firm is not affiliated with the U.S. government or any governmental agency. Neither the firm nor its agents or representatives may give tax or legal advice. Individuals should consult with a qualified professional for guidance before making any purchasing decisions. 4317283 – 3/25
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Jake Klima has dedicated 18 years to the financial services industry, focusing on coaching elite financial advisers. In his leadership role at Advisors Excel, a market-leading financial services wholesaler, Jake partners with top-performing advisers to help them enhance their practices and build thriving businesses. Leading a coaching team of over 100 members, Jake emphasizes transforming advisory firms into scalable businesses that offer time freedom.
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