As 2025 unfolds, the U.S. government is unveiling new and expanded benefits that go beyond Social Security.
These initiatives aim to improve financial security, expand healthcare access, and simplify processes for reclaiming lost funds.
From increased retirement contributions to expanded veteran healthcare, here’s a comprehensive guide to understanding these hidden perks and how to make the most of them.
Key Benefits and Updates
| Benefit | Details |
|---|---|
| 401(k) Contribution Limits | Increased to $23,500; ages 60–63 can add $11,250 as catch-up contributions. |
| Mandatory Enrollment | New 401(k)/403(b) plans automatically enroll employees at 3%-10% of salary. |
| Veteran Healthcare | Expanded telehealth services and streamlined Social Security access. |
| Social Security COLA | 2.5% increase; FRA rises to 66 years, 10 months for those born in 1959. |
| Lost Retirement Accounts | Centralized tool helps reclaim forgotten 401(k) and pension funds. |
| EITC Expansion | Higher income thresholds allow more workers to qualify. |
1. Higher Retirement Contributions
Retirement savings just got a significant boost:
- Standard Limits: Annual contributions to 401(k)s, 403(b)s, and Thrift Savings Plans rise to $23,500.
- Catch-Up Contributions: Workers aged 60–63 can contribute an additional $11,250, higher than the $7,500 limit for those aged 50+.
Example: A 62-year-old earning $100,000 can now contribute up to $34,750, reducing taxable income while increasing retirement savings.
Pro Tip
- Automate contributions through payroll. Speak to HR to confirm you’re on track to maximize these higher limits.
2. Automatic Enrollment for Retirement Plans
All new workplace 401(k) or 403(b) plans must now auto-enroll employees at 3%-10% of their salary. Contributions automatically increase annually by 1%, maxing out at 15%.
Why It Matters: Auto-enrollment ensures more Americans save for retirement without requiring active participation.
Action Steps
- Check your pay stubs to confirm your enrollment.
- Adjust contribution rates to match your financial goals.
3. Reclaiming Lost Retirement Accounts
Millions of Americans lose track of retirement accounts when changing jobs. A new Lost Account Finder tool from the Department of Labor simplifies reclaiming these funds.
Steps to Reclaim Funds
- Visit the Department of Labor Retirement Portal.
- Use the Lost Account Finder tool.
- Contact former employers or plan administrators if needed.
4. Expanded Veteran Healthcare
Veterans are benefiting from enhanced healthcare and financial support:
- Telehealth Expansion: The VA now offers broader telemedicine options for veterans in remote areas.
- Streamlined Social Security: Disabled veterans get faster access to Social Security benefits through simplified processes.
Example: A veteran in a rural area can now access specialist consultations via telehealth without lengthy travel.
5. Social Security Enhancements
While Social Security remains vital, 2025 introduces key updates:
- COLA Increase: A 2.5% Cost-of-Living Adjustment boosts monthly benefits.
- Full Retirement Age (FRA): Rises to 66 years, 10 months for individuals born in 1959.
- Maximum Taxable Earnings: Increases to $176,100, meaning higher earners contribute more.
Tip: Use the Social Security Benefits Calculator to estimate future payments.
6. Earned Income Tax Credit (EITC) Expansion
The EITC now has higher income thresholds, allowing more low-to-moderate-income workers to qualify.
Example: A family with part-time and self-employed workers may now qualify for the credit, reducing taxable income and boosting refunds.
Eligibility
- Check your status using the IRS EITC Assistant.
- File early to take advantage of expanded thresholds.
Practical Tips to Maximize These Benefits
Retirement Savings
- Start Early: Compound interest works best when contributions begin sooner.
- Monitor Accounts: Regularly review statements to ensure accurate contributions.
- Use Tax Advantages: Contribute to IRAs, HSAs, and FSAs for additional tax savings.
Veteran Support
- Enroll in VA telehealth services for convenient healthcare access.
- Contact a Veterans Service Officer (VSO) to explore additional benefits.
Tax Benefits
- File for the EITC even if you don’t owe taxes.
- Keep records of eligible deductions for education, childcare, and medical expenses.
Staying Informed
Government benefits often evolve, and staying updated ensures you don’t miss opportunities. Sign up for alerts from trusted sources like the IRS, Social Security Administration, or Department of Labor for the latest updates on new perks.
