MJP –
Not all parts of life, such as Social Security, benefit from change. Nonetheless, it’s not always the case. If your employer suddenly decides that remote workers can no longer be tolerated and that all employees must report to the office every day, for example, you may find that you are unable to swiftly adjust to this new situation.
For the same reason, you might resist your doctor’s orders to cut back on spicy and salty foods. But changes aren’t necessarily negative. Older workers around the nation can look forward to some improvements coming soon from the Social Security Administration.
See how the upcoming changes to Social Security and Supplemental Security Income (SSI) or Retirement, Survivorship, and Disability Insurance (RSDI) in 2025 influence your income and benefits.
Next year, recipients will feel the effects of new regulations that Social Security unveiled.
A 2.5–3% increase to Social Security benefits is warranted.
Annually, Social Security benefits get a cost-of-living adjustment (COLA) to ensure that payouts remain purchasing power-preserving despite increases in the cost of living. In any particular year, though, there’s no guarantee that a COLA will take place.
One can only occur if inflation is present from year to year. Thankfully, the period of extremely high inflation that persisted throughout most of 2022 has come to an end. Despite this, annual increases in the cost of living have been occurring since 2024.
What this means is that next year’s Social Security payouts will likely increase. However, the exact amount of the rise remains unknown as the cost-of-living adjustment (COLA) for January is determined using inflation statistics from the preceding quarter.
Awaiting the arrival of your disability, SSI, or SSDI benefits: Review your financial records
An independent group called the Senior Citizens League has recently projected that by 2025, the Social Security COLA will have reached 2.57%. Even while it isn’t quite as much as the 3.2% boost participants got at the beginning of 2024, they will still feel better after receiving it.
In 2025, the maximum monthly payment is expected to rise.
Social Security taxes are withheld from some workers. The annual cap on payroll taxes is subject to change. Individuals with incomes above the limit are only have to contribute a $1 for every dollar that falls below it.
Attention Retirees: Essential Action to Take on October 10 for Your Social Security Benefits
On the flip side, remember that your monthly Social Security benefit is limited to a set amount. For those who reach full retirement age in 2024, the maximum monthly payout is $3,822.
However, this figure will most certainly increase by the year 2025. An individual’s ability to receive the maximum monthly Social Security payout is directly proportional to their income level. A large bonus, however, awaits those who find themselves in this position and who intend to retire in the year 2025.
The common misconception about working and collecting Social Security benefits is completely false.
Really, it is possible. If you continue to work while receiving Social Security benefits and have not yet reached full retirement age, and your earnings exceed a specific level, known as the earnings test limit, a portion of your benefits may be reduced.
Assuming you reach full retirement age before the year ends but have not yet done so, your maximum earnings for the year can be $59,520, or $22,320.
If you believe, the Nonpartisan group Senior Citizens League has projected that Social Security benefits will see a cost-of-living adjustment of approximately 2.5% in the upcoming year.
Making a little extra money shouldn’t put you in danger of losing your Social Security payments, especially because these amounts are expected to increase next year.
It should be noted that the portion of your benefits that are currently being withheld due to your high income will not be lost. At retirement age, that sum will be re-deposited into your monthly paychecks.
As a result of the change, your status may improve or deteriorate. But seniors should be optimistic about 2025 in terms of Social Security.
Juniper Calloway is a dedicated journalist with 3 years of experience in covering hard-hitting stories. Known for her commitment to delivering timely and accurate updates, she currently works with MikeandJon Podcast, where she focuses on reporting critical topics such as crime, local news, and national developments across the United States. Her ability to break down complex issues and keep audiences informed has established her as a trusted voice in journalism.
