Key Social Security Updates for 2025 You Need to Know

Economy

1 year ago

News sources:

Credited from: USATODAY

Social Security benefits will increase by 2.5% in 2025 due to the annual cost-of-living adjustment (COLA), averaging an extra $50 per month.
Earnings limits are raising, allowing recipients who work to earn up to $62,160 before their benefits are reduced. Those over full retirement age will not face this limit.
High earners will have a higher taxable income cap for Social Security taxes, increasing from $168,600 in 2024 to $176,100 in 2025.
The smaller COLA increase reflects cooling inflation, with many retirees indicating it may not sufficiently cover rising costs.
Planning ahead for these adjustments will be essential to ensure financial stability in 2025, regardless of retirement status.