Social Security Changes: If you are a beneficiary of the Social Security Administration’s retirement or Supplemental Security Income programs, it’s important to be aware of the changes that could impact the payments you receive next year.
Benefits are influenced by various factors each year, including the cost-of-living adjustment, Medicare premiums, and the maximum taxable earnings, all of which can either increase or decrease your monthly payments.
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Social Security benefits will rise in 2025
We calculate your #retirement payment by assessing how much you’ve earned throughout your life. Check your #SocialSecurity account today to find out how much you may get when you apply. https://t.co/WH9kmNxT3W. pic.twitter.com/EnHpvEJlia
— Social Security (@SocialSecurity) December 18, 2024
According to the Social Security Administration, average payments will increase by the following amount next year due to a 2.5% increase in the cost-of-living adjustment:
- All retired workers: $1,927 to $1,976
- Elderly couple where both receive benefits: $3,014 to $3,089
- Survivor and two children: $3,669 to $3,761
- Elderly widow(er): $1,788 to $1,832
- Disabled worker, spouse and one or more children: $2,757 to $2,826
- All disabled workers: $1,542 to $1,580
Supplemental Security Income (SSI) Increases
For Supplemental Security Income (SSI), the maximum monthly federal amounts will be $967 for an eligible individual, $1,450 for an eligible individual with an eligible spouse, and $484 for an essential person.
While not directly related to the COLA increase, the maximum benefit amounts for retirees will also rise by 2025. According to the official SSA payment table, the maximum benefit for 2025 will be $2,831 at age 62, $3,374 at age 65, $3,795 at age 66, $4,043 at age 67, and $5,108 for those age 70 and older.
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The exact amount a beneficiary receives will vary, as Social Security payments are calculated individually. To estimate your new benefit, you can add 2.5% to your current payment. SSA will notify beneficiaries of the updated amount via mail or through their my Social Security account.
Maximum Taxable Income Will Increase
To qualify for the highest monthly Social Security payment, you need to pay Social Security payroll taxes on the maximum taxable income over your 35 highest-earning years. This amount changes yearly, usually increasing because it’s tied to the national average wage index. In 2024, only the first $168,600 of your income is taxed for Social Security, but in 2025, this limit will rise to $176,100.
More Money Needed to Earn Social Security Credits
To be eligible for Social Security benefits, you need 40 work credits, with a maximum of four credits earned per year. Each credit requires a certain amount of income.
In 2024, one work credit is earned for every $1,730 of income. In 2025, that amount will increase to $1,810. Even those with full-time jobs at minimum wage can earn the required four credits each year.
