In some areas of life, like Social Security, change is not always a good thing. But in other areas, it can be. For instance, you might not be able to adapt quickly if your company decides to stop letting people work from home and make everyone work full-time in the office.
In the same way, you might not want to change your diet if your doctor tells you to eat less hot and salty foods. Changes are not always bad, though. The Social Security Administration is about to make some changes that will be good for old workers across the country.
If you get Supplemental Security Income (SSI) or Retirement, Survivorship, and Disability Insurance (RSDI), find out more about how the next changes will affect your income and Social Security in 2025.
Social Security announced the new changes that will impact beneficiaries next year
Extra money from Social Security should go up by 2.5% to 3%.
The cost of living adjustment (COLA) that Social Security benefits get every year is meant to help those checks keep their buying power as the cost of living goes up. There is, however, no promise that a COLA will happen in any given year.
It takes inflation from one year to the next for one to happen. Thank goodness the time of very high inflation that lasted most of 2022 is over. Still, the cost of living has been going up every year since 2024.
Check your Social Security account to see how much you’ll get when you apply at different times between age 62 and 70 – Get an estimate
By this, it looks like Social Security benefits will go up in some way the following year. But we still do not know how much that increase was because the COLA for January is based on inflation data from the previous third quarter.
A new prediction from the independent Senior Citizens League says that the Social Security COLA will reach 2.57 percent in 2025. People who get it will still feel better, even though it is not as much as the 3.2% increase they got at the start of 2024.
The maximum monthly payment should increase in 2025
Not all workers pay Social Security taxes on their whole pay. The limit on the payroll tax changes every year. People who make more than the limit only pay into the system for every dollar they earn below the limit.
The other side of the coin is that Social Security will only pay up to a certain amount each month. In 2024, the most a person can get each month if they are fully retired is $3,822.
But it is likely that this number will go up by 2025. Without a doubt, people with higher incomes are the only ones who can get the highest monthly Social Security payment. On the other hand, if you are in this situation and plan to retire in 2025, you will get a big bonus.
Further modifications for the earnings-test limit
It is possible to work and get Social Security payments at the same time, despite what most people think.
Yes, you can. However, if you work while getting benefits and have not yet hit your full retirement age, and your earnings go over a certain amount (called the earnings test limit), you could have some of your Social Security taken away.
You can earn up to $22,320 this year, or $59,520 if you hit your full retirement age before the end of the year but have not yet reached it.
According to NJ.Com The latest cost-of-living-adjustment estimate for Social Security benefits next year is expected to be about 2.5%, according to the nonpartisan Senior Citizens League.
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You should not have to worry about having your Social Security payments cut off if you make a little more money, since these amounts are likely to go up next year.
Here’s the Latest Estimate for the 2025 Social Security COLA
To be clear, though, you will not lose the part of your benefits that are being held back because you make too much money. That money will be added back to your monthly checks when you reach retirement age.
The change could be good or bad for you, depending on your situation. When it comes to Social Security, however, seniors have a lot of reasons to be hopeful about 2025.
Also see:-The age at which you can retire will change, and so will your Social Security checks