2025 Social Security Changes for Married and Divorced Retirees

This year, married and divorced retirees can expect a 2.5% cost-of-living adjustment (COLA) to their Social Security benefits. However, this increase will be slightly offset by rising Medicare Part B premiums. Additionally, the earnings test limits will increase, allowing retirees to earn more without facing benefit reductions.

The average spouse collecting $909 per month can expect a $23 increase due to the COLA. Nevertheless, when considering Medicare premiums, which rise from $174.90 to $185 per month, the net gain is reduced. For those receiving smaller spousal or divorce benefits, these changes may have a disproportionate effect.

The earnings test limits will also increase in 2025, allowing retirees to earn more without benefit reductions. Those who reach their full retirement age (FRA) in 2025 can expect to face a $1 reduction for every $3 over the limit of $62,160 per year. In contrast, those who won’t reach their FRA may face a $1 reduction for every $2 over the limit of $23,400 per year.

It is essential for retirees to be aware of these changes and adjust their retirement plans accordingly. By keeping up-to-date with Social Security updates, you can ensure that your benefits are as prepared as possible for 2025.

Source: https://finance.yahoo.com/news/married-divorced-heres-social-security-100000586.html