In 2025, several updates to Social Security will affect beneficiaries, including those who receive spousal or divorced benefits. Understanding these changes can help ensure that you’re fully prepared for how they may impact your monthly payments. Whether you’re newly eligible for benefits or a long-time recipient, here’s what you need to know about the upcoming adjustments and their potential effects on your Social Security checks.
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Key Changes to Social Security for Divorced and Married Beneficiaries in 2025
Social Security provides different benefit structures for retirees, including spousal and divorce benefits. However, the amount you receive as a spouse or ex-spouse is heavily influenced by several factors.
Understanding Spousal Benefits and Divorce Benefits
When a worker applies for Social Security, their spouse or ex-spouse may also be eligible for benefits based on the worker’s earnings record. A spouse can receive up to half of the worker’s primary insurance amount (PIA) if they claim at their full retirement age. If the spouse starts benefits earlier, before reaching full retirement age, their check will be reduced. However, spousal benefits are not reduced if the spouse is taking care of a qualifying child (under 16 or disabled).
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In the case of divorce, if the marriage lasted at least 10 years, the ex-spouse can claim benefits based on the former spouse’s earnings record, provided they have not remarried. The key difference between spousal benefits and divorce benefits is that divorce benefits do not affect the worker’s benefit amount, even if the ex-spouse claims them.
Cost-of-Living Adjustment (COLA) and Its Impact
In 2025, Social Security beneficiaries will see a 2.5% increase in their monthly payments, marking the lowest COLA hike in four years. While this percentage increase may seem modest, it can have a bigger impact for those receiving smaller checks, such as divorced or spousal beneficiaries.
- The average monthly benefit for a spouse in 2023 was $909. With the 2.5% COLA, this will increase by about $23 per month. For someone who relies on Social Security as their main income source, this adjustment can make a small but meaningful difference.
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How the Earnings Test and Medicare Premiums Will Affect Social Security Benefits
Earnings Test Limit and Its Consequences
If you continue working after qualifying for Social Security benefits but before reaching full retirement age, you may be subject to the retirement earnings test. The earnings test limits how much you can earn without affecting your benefits:
- For 2025, the earnings limit is $62,160. If you exceed this limit, your benefits will be reduced by $1 for every $3 you earn over the threshold. For individuals who do not reach full retirement age the following year, the reduction rate is even higher—$1 for every $2 earned above the limit of $23,400.
For spousal or divorced beneficiaries, who typically receive smaller checks than the worker themselves, exceeding the earnings test limit can lead to a significant reduction in benefits. This can especially affect those who work while receiving Social Security, making it important to understand how your income might impact your benefits.
Increased Medicare Premiums
Next year, Medicare Part B premiums are set to rise to $185 per month, a $12.70 increase from the previous year. While this may seem small, it can have a larger impact on individuals who receive smaller monthly Social Security checks. For example, if your monthly spousal benefit only increases by $23 due to the COLA adjustment, nearly half of that increase may be absorbed by the higher Medicare premiums. This could leave you with a much smaller net increase in your monthly check.
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Early Retirement and Its Effects on Spousal Benefits
One of the most important factors that can affect spousal benefits is the age at which the spouse begins collecting Social Security. If the spouse decides to start their benefits early, at age 62, their spousal benefit could be significantly reduced.
How Early Retirement Affects the Spousal Benefit
For a spouse who begins benefits before reaching full retirement age, the benefit amount is reduced by 25/36 of 1% for each month they begin benefits before normal retirement age. If the number of months exceeds 36, the reduction is 5/12 of 1% per month.
For instance, let’s say a worker’s primary insurance amount (PIA) is $1,600, which would yield a spousal benefit of $800 (half of the PIA). If the spouse claims benefits 36 months early, the benefit is reduced by 25%, resulting in a reduced spousal benefit of only $600. In this case, the early claim significantly reduces the spousal benefit, which is important to consider when deciding when to start taking Social Security.
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Conclusion: Planning for 2025 and Beyond
As Social Security undergoes changes in 2025, beneficiaries—whether married or divorced—need to stay informed about how these adjustments may affect their monthly payments. The 2.5% COLA increase may seem modest, but it still represents a vital boost for many seniors, especially those receiving smaller spousal or divorce benefits. Similarly, understanding the earnings test limits and Medicare premium increases can help you plan more effectively for retirement.
Ultimately, early retirement may reduce your spousal benefits, while waiting for full retirement age or beyond can increase the checks you receive. Whether you’re planning for a future claim or are already receiving benefits, being aware of these changes can help you make the most of your Social Security benefits in the coming years.
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