6 Big Shakeups Coming to Social Security in 2025
(SSA).
people, widows, family members, children, disabled workers and low-income individuals - and 2025 will bring significant changes for almost all of them.
or SSI benefits.
You can begin this week.
Retirees will receive a 2.5% Cost-of-Living Adjustment (COLA) in their Social Security benefits.
The SSA issues cost-of-living adjustments (COLAs) every year to make sure benefits keep up with rising prices so inflation doesn't reduce recipients' buying power.
The increase is actually slightly lower than the 2.5% average annual cost-of-living adjustment boost that benefit amounts have seen over the past decade.
The increase is significantly lower than the 3.2% rise people got in 2024, and much lower than the 40-year high 8.7% jump they experienced in 2023.
The typical monthly payment is more expensive.
By the end of 2024.
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For people who retire at their full retirement age, the full retirement age and the age at which the SSA stops issuing delayed retirement credits are the same.
- $2,831, up from $2,710
- $4,018, up from $3,822
- $5,108, up from $4,873
The Maximum Supplemental Security Income (SSI) Benefit Increased
.
A Larger Amount of Income Is Subject to Tax to Support the Program
.
Early Retirees Can Boost Their Income Without Reducing Benefits
Individuals receiving Social Security benefits before their full retirement age will have their payments reduced if they earn too much income while receiving these benefits.
From $22,320 to $23,400, the SSA deducts $1 in benefits for every $2 earned over that income threshold. After that, for individuals who will reach full retirement age in 2025, the threshold is $62,160, and the SSA then deducts $1 for every $3 earned.
Once you reach your full retirement age, your benefits will never be reduced, regardless of how much income you earn.
- If you have high-interest debt, such as credit card balances or personal loans, paying it off can free up a significant amount of money in your monthly budget. Additionally, consider consulting with a tax professional to understand how your savings may be impacted by taxes and to explore any tax-advantaged savings options.
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6 Major Changes Coming to Social Security in 2025
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