Social Security COLA 2025, benefits by age

Will 2025 be the year you retire?

There will be some changes to Social Security in 2025, including a 2.5% cost of living increase.

If you want the maximum Social Security benefits, be sure to check what your full retirement age is, as it is constantly increasing.

Here’s how to figure out if Social Security is in your plans this year or if you’re just thinking ahead.

Social Security’s cost of living adjustment will increase by 2.5% in 2025

The cost of living adjustment (COLA) will increase by 2.5% in 2025.

“That’s below the 3.2% increase seen by retirees last year,” according to The Motley Fool.

The increase in 2025 will increase the average monthly check from $1,927 to $1,976. That means an additional $588 for the typical beneficiary in 2025.

By law, federal benefits increase as the cost of living rises, as measured by the Labor Department’s Consumer Price Index for urban wage earners and office workers, according to the Social Security Administration.

When will the Social Security increase take effect in 2025?

The increase will begin with benefits received by Social Security recipients in January 2025. Increased SSI payments will begin payment on December 31, 2024.

How do you know exactly how much of a Social Security increase you will receive in 2025?

The Social Security Administration will mail COLA notices in December. The agency asked recipients to wait until January before asking about a missing letter.

If you don’t want to wait, you can access your 2025 benefit amount online from your personal account My Social Security Account. The agency said the information was published from the beginning of December.

Do you want to receive the maximum Social Security benefit? Age continues to increase

Your full retirement age is the age at which you are eligible to receive full Social Security benefits. The government assigns this to you based on your birth year. For adults born between 1943 and 1954, the age is 66. The government has raised the full retirement age by two months per year in recent years.

In 2024 the FRA is 66 and 8 months, but in 2025 it will increase to 66 and 10 months. The same will happen in 2026, when the FRA for those born in 1960 and later reaches 67. After that, the full retirement age will remain stable, at least for the foreseeable future, according to The Motley Fool.

You can apply as early as 62, regardless of your full retirement age. However, claiming early will reduce your benefits. Make sure you consider all possible eligibility ages before deciding what to do.

What is your full retirement age based on your birth year?

You can start collecting your Social Security pension as early as age 62. However, you are only entitled to full benefits once you have reached full retirement age. If you delay taking your benefits from your full retirement age until age 70, your benefit amount will increase, according to the Social Security Administration.

If you start receiving benefits early, your benefits will be reduced by a small percentage for each month before you reach full retirement age. Here you will find the full retirement age based on your year of birth.

1943-1954: 66
1955: 66 and 2 months
1956: 66 and 4 months
1957: 66 and 6 months
1958: 66 and 8 months
1959: 66 and 10 months
1960 and later: 67

What is the maximum Social Security pension you can receive?

The maximum monthly benefit depends on the age at which you retire. For example:

If you reach full retirement age in 2024, your maximum pension will be $3,822.
If you retire in 2024 at age 62, your maximum pension will be $2,710.
If you retire at age 70 in 2024, your maximum pension will be $4,873.

Can you continue to work and receive Social Security?

Yes, but if you are younger than full retirement age and earn more than the annual income limit, Social Security will reduce your benefits.

Your benefit will increase when you reach your full retirement age to reflect benefits withheld based on previous earnings, the agency said.

How do you apply for Social Security?

“Apply for your monthly pension benefit at any time between the ages of 62 and 70. We calculate your payment by looking at how much you have earned over your lifetime,” the Social Security Agency website says. “The longer you wait to apply, the higher the amount will be, up to the age of 70. The timing is up to you and should be based on your personal needs.”

When you’re ready to apply for retirement benefits, use the online retirement application on the Social Security website.

You can also apply by calling 1-800-772-1213 or visiting your local Social Security office Monday through Friday, 8 a.m. to 7 p.m. local time. You must call to make an appointment.

You can apply for an old-age pension up to 4 months before the desired pension start date.

Social Security COLA 2025, benefits by age

ByAmelia Journalton

By Amelia Journalton

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