If you’re married or divorced and relying on Social Security, 2025 is bringing important updates you can’t ignore.

From a slight Cost-of-Living Adjustment (COLA) to increased Medicare premiums and updated earnings limits, these changes may affect how much you receive each month. Here’s a clear breakdown of what you need to know.

1. A Smaller COLA Means a Small Increase in Benefits

The Social Security Cost-of-Living Adjustment (COLA) for 2025 is set at 2.5%, much lower than in previous years. For comparison, COLAs in 2022 and 2023 were 5.9% and 8.7%, respectively.

If you’re collecting spousal or divorce benefits, this increase may not add much to your monthly check. For example, the average spousal benefit is $909 per month (as of late 2024). With the 2.5% increase, that’s an extra $23 per month.

While the raise may feel small, it’s tied to slowing inflation. In November 2024, inflation rose only 2.7%, down significantly from the 9.1% peak in 2022.

The good news? Prices for goods and services aren’t rising as quickly. The downside? Those hoping for a bigger Social Security boost may feel disappointed.

2. Medicare Part B Premiums Will Increase

Another big change in 2025 is the increase in Medicare Part B premiums. If you’re enrolled in Medicare, you likely have these premiums deducted directly from your Social Security check.

In 2025, Part B premiums will increase to $185 per month, up by $10.30 per month. For those receiving smaller Social Security checks—like spousal or divorce benefits—this can take a noticeable chunk out of your raise.

For example:

With the COLA increase, a $909 spousal benefit grows by $23.
After subtracting the $10.30 premium hike, the real raise is only $12.70 per month.

If you’re already on a tight budget, this change may feel like a setback. Planning for this increase can help you manage your monthly expenses better.

3. Earnings Test Limits Will Be Higher

Are you working while collecting Social Security? If so, the earnings test applies to you. This rule limits how much you can earn before your benefits are reduced. The good news? The limits will increase in 2025.

Here’s how it works:

If you reach full retirement age (FRA) in 2025: You can earn up to $62,160 per year before your benefits are reduced. This is up from $59,520 in 2024. Any earnings above this will reduce your benefit by $1 for every $3 earned.
If you won’t reach FRA in 2025: You can earn up to $23,400 per year (up from $22,320). Earnings above this reduce your benefit by $1 for every $2 earned.

These limits are especially important for those receiving smaller benefits, like spousal or divorce payments. If you earn significantly more than the limit, a large portion—or even all—of your benefits could be withheld.

However, there’s a silver lining: Once you reach full retirement age, your payments are recalculated, and you’ll regain the withheld amounts.

How to Prepare for These Changes?

For married and divorced retirees, Social Security benefits can be a vital source of income. To stay ahead of the game in 2025, keep these changes in mind:

Budget for a small raise: The 2.5% COLA will add a little extra to your checks, but rising Medicare premiums may eat into those gains.
Adjust for Medicare costs: The $185 Part B premium may feel small, but for many retirees, every dollar counts.
Monitor your earnings: If you plan to work while receiving Social Security, be mindful of the new earnings test limits. Exceeding them could lead to temporary benefit reductions.

Final Thoughts

For retirees, every dollar matters. Whether you’re married or divorced, Social Security updates in 2025 will have an impact on your monthly income. While the COLA is smaller this year, slowing inflation offers some relief.

Stay informed and plan ahead to make the most of your benefits. By understanding these changes now, you can better manage your retirement finances in the new year.

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