The cost of living has increased by over 22% since 2020, while Social Security adjustments have risen by less than 13%. To address this, the Social Security Administration will increase benefits by 2.5% starting January 2025.
For over 72 million Americans receiving Social Security benefits, including retirees, veterans, and dependents, this adjustment will translate to around $50 more per month on average. The maximum earnings subject to Social Security tax will also rise to $176,100 from $168,600.
In contrast, the overall cost-of-living adjustment since 2020 has been only 12.9%. This increase in benefits aims to keep pace with inflation and maintain the purchasing power of Social Security recipients.
Key updates for Texans include:
– Estimated average monthly benefits for retirees will rise from $1,927 to $1,976.
– Benefits for aged couples will increase from $3,014 to $3,089.
– The maximum earnings subject to Social Security tax will increase to $176,100 from $168,600.
These updates take effect on January 1, 2025.
Source: https://eu.statesman.com/story/news/state/2024/12/18/social-security-cola-2025-benefits-increase-new-retirement-age-limit-cost-of-living/77046299007