Social Security has been in place for nearly 90 years, but it’s undergoing significant changes by 2025. For those already receiving benefits or planning for retirement, staying informed is crucial to avoid surprises.
Two major updates are coming next year that could impact millions of Americans. Firstly, Social Security payments will increase by 2.5% due to the annual cost-of-living adjustment (COLA). This means the average monthly benefit will rise from $1,927 to $1,976, translating to an extra $50 per month for most retirees.
However, if you’re enrolled in Medicare Part B, those premiums might eat into the boost. A recent survey found that 54% of retirees think the upcoming COLA increase is not enough, given the current inflationary environment.
Despite the modest increase, it’s worth noting that this boost is based on inflation, which measures how much prices are rising. This means that while the increase might seem small compared to previous years (3.2% in 2024, 8.7% in 2023, and 5.9% in 2022), it’s still better than no increase at all.
Moreover, for those who continue working while receiving Social Security benefits, there are some positive changes coming next year. The amount you can earn without affecting your benefits will increase to $23,400 for early filers and $62,160 for those reaching full retirement age in 2025.
For retirees planning to keep working or start a new job, understanding these updates is essential. By staying informed and planning ahead, you can make the most of your Social Security benefits and hold onto more of your money in retirement.
In addition to the COLA increase, there’s another little-known “Social Security tip” that could boost your yearly benefits by $22,924. By optimizing your strategy, you can feel more secure and enjoy a more peaceful retirement.
Source: https://eladelantado.com/en/social-security-changes-2025-benefits-impact