In 2025, Social Security benefits experienced a 2.5% increase, the smallest adjustment in recent years, as inflation stabilizes. The maximum monthly benefit at full retirement age now stands at $4,018, while the average is about $1,976. Additionally, the earnings-test limit has risen, enabling beneficiaries to work and earn more while collecting their benefits. However, the structure tends to favor higher earners, posing potential challenges for lower earners in qualifying for benefits. Delaying claims can yield an 8% increase per year until age 70, maximizing future benefits.
Social Security's annual cost-of-living adjustment (COLA) for 2025 is 2.5%, the smallest increase in years, attributed to cooling inflation.
The earnings-test limit for Social Security beneficiaries has increased, allowing recipients to earn more while still receiving benefits.
Higher earners contribute more to Social Security, while some lower earners may find it harder to qualify for benefits under the new changes.
To maximize benefits, delaying Social Security claims past the full retirement age can lead to an increase of 8% per year until age 70.
#social-security #retirement-benefits #cost-of-living-adjustment #economic-changes #financial-advice
Collection
[
|
...
]