Social Security changes coming in 2025 with automatic check increase worth up to $4,018 but it depends on your age
A check increase is one of the major improvements that Social Security users may expect in the next year.
Approximately 72.5 million Americans rely on a Social Security Administration (SSA) program.
Individuals who are retired, disabled, or surviving following the death of a spouse, divorced spouse, child, or dependent of someone who paid Social Security taxes can receive financial assistance through these programs.
The majority of beneficiaries are aware that, depending on their birthday, the monthly check they get in the mail as part of their benefits arrives on Wednesdays.
Additionally, they are aware that the cost-of-living adjustment (COLA), which affects their income the following year, is released in October.
Based on inflation rates, cost-of-living adjustments calculate how much money Americans would need to live comfortably in the current economy.
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The lowest increase in roughly four years, the 2.5% COLA adjustment, was announced on October 10.
Nevertheless, it is hovering around the historical average of roughly 2.6%, which translates to an extra $48 each month for every check issued during the year, for a total of $576.
The average Social Security benefit will be $1,968 after the COLA adjustment.
However, the benefits could be significantly greater for retirees.
WAIT IT OUT
They can receive 100% of benefits as long as they wait until the SSA determines what the full retirement age is.
For those born after 1960, that figure is 67, which indicates that individuals who wait until then to quit their jobs receive $4,018 every check.
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Compared to $3,822 last year, this is more.
Payments for widows, widowers, and disabled single people will be increased to $1,832.
The monthly payment for disabled people with a spouse and one or more children will increase to $2,826.
It’s crucial to remember that the totals stated are all expected averages and could vary based on individual recipient-specific characteristics.
WHEN SOCIAL SECURITY PAYMENTS ARE MADE
Depending on the recipient’s birthdate, Social Security benefits are paid on the second, third, or fourth Wednesday of every month:
- Second Wednesday: For individuals born between the 1st and 10th of the month
- Third Wednesday: For those born between the 11th and 20th
- Fourth Wednesday: For those born between the 21st and 31st
When payments for 2025 start in January, increases will follow.
TAX CONSIDERATIONS
Americans who are still employed should also keep in mind that the SSA can only tax a certain amount of income.
It is known as the “maximum taxable earnings” and is subject to annual adjustments in tandem with the COLA, which is determined by increases in the average pay across the country.
As a result, taxes increase with your income.
The maximum salary will increase from $168,600 to $176,100 in 2025.
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Additionally, if President-elect Donald Trump implements certain changes to Social Security, some Americans may be able to save an amazing amount of money.
Nevertheless, a U.S. Sun economist claimed in an exclusive interview that Social Security is covertly “screwing people it was designed to help.”
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