If you receive Social Security, you’re likely aware of one major change happening in January: a 2.5% cost-of-living adjustment (COLA) that will increase your monthly benefit.
For most retirees, this means an average boost of about $48 per month, while workers with disabilities would see an increase of around $39.
However, other changes will also take effect in 2025. Medicare premiums are set to rise from $174.70 to $185 per month, which will partially offset the COLA increase and reduce the net benefit gain for recipients.
There is some positive news for Social Security recipients who haven’t yet reached full retirement age and are still working.
Starting in 2025, these individuals can earn more before their monthly benefits are reduced. The current limit of $22,320 increases to $23,400, with a $1 reduction for every $2 earned beyond that threshold.
Additionally, some recipients may qualify for a higher maximum monthly benefit, which will increase from $4,873 to $5,108.
This higher benefit applies to those who have worked for at least 35 years and consistently earned at or above the taxable income limit, which will be $176,100 in 2025.
Delaying your Social Security start age, ideally, until age 70, can result in a higher payout, while starting as early as age 62 would result in a maximum benefit of $2,831.
Peoplesmind
Peoplesmind
