Three Social Security changes in 2025 that will put money in your pocket & you may not have to wait as long to claim
Change is inevitable in the new year, and Social Security is undergoing a transformation.
Three significant modifications will be made to the payment system that may affect your salary.
Many people can receive an increase in their Social Security benefits.
COLA 2025
To account for variations in the cost of living, the Social Security Administration regularly modifies the amount it disburses.
These are known as COLAs, or cost of living adjustments.
Millions of people will have a 2.5% COLA in 2025.
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Since 2020, that has been the lowest rise.
According to the administration, 72.5 million Americans would be impacted by the new rate.
The changes will take effect on December 31, 2024, for people who receive Supplemental Security Income, or SSI.
The adjustment will take effect in January for other Social Security beneficiaries.
MORE TAX
Additionally, the maximum income that is liable to Social Security tax is increasing.
The maximum is now $176,100.
This implies that more workers will contribute to the SSA’s system.
MAX EARNINGS
The maximum earnings you can earn before the Social Security Administration begins to subtract from your payout has increased to $23,400 for individuals who did not reach full retirement age prior to collecting.
In 2025, the earnings cap for employees who are receiving Social Security but will be approaching full retirement age will be $62,160.
For further information, see the Social Security Administration’s website.
COSTS OF LIVING
COLA adjustments reflect the amount people typically pay for goods and services across the economy.
2025 Social Security Payment Schedule
The second, third, and fourth Wednesdays of every month are when Social Security benefits are distributed. Benefits will be disbursed on the following dates in 2025:
- January 8, 15, and 22
- February 12, 19, and 26
- March 12, 19, and 26
- April 9, 16, and 23
- May 14, 21, and 28
- June 11, 18, and 25
- July 9, 16, and 23
- August 13, 20, and 27
- September 10, 17, and 24
- October 8, 15, and 22
- November 12, 19, and 26
- December 10, 17, and 24
High inflation since theCovidpandemic has caused problems for millions of Americans.
However, COLA is decreasing along with inflation.
In the recent economic cycle, the highest COLA increase was in 2022 – when it hit 8.7%.
That year s COLA was the highest since 1981.
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