Are you planning to retire in 2025? Social Security benefits are essential for many retirees, and there are a few important updates you should know about, including changes to the full retirement age and a cost-of-living adjustment (COLA).
Let’s break it all down in simple terms so you can plan wisely.
1. Social Security Benefits Are Getting a 2.5% Boost in 2025
The Social Security Administration announced a 2.5% COLA for 2025. While this is slightly lower than the 3.2% increase in 2024, it still means more money for retirees.
For example, if you’re an average beneficiary, your monthly payment will go from $1,927 to $1,976. Over the entire year, that adds up to $588 extra! These adjustments are based on inflation and calculated using the Consumer Price Index.
2. When Will You See the Increase?
The new payment rates will start in January 2025. For those receiving Supplemental Security Income (SSI), payments reflecting the increase will begin on December 31, 2024.
3. How to Check Your 2025 Payment Amount
In December, the Social Security Administration will send out COLA notices by mail. If you don’t receive one, don’t worry—you can find this information online through your My Social Security account.
4. Full Retirement Age (FRA) Is Increasing
Your FRA determines when you can receive full Social Security benefits. It depends on the year you were born.
- If you were born between 1943 and 1954, your FRA is 66.
- For those born in 1960 or later, the FRA is 67.
- If you were born in 2025, your FRA will fall between 66 years and 10 months.
You can claim Social Security as early as age 62, but doing so will reduce your monthly benefit. The longer you wait (up to age 70), the higher your monthly payments.
5. Maximum Social Security Benefit in 2024
The maximum Social Security benefit depends on when you start collecting:
- At FRA: $3,822 per month.
- At age 62: $2,710 per month.
- At age 70: $4,873 per month.
Delaying your retirement can significantly increase your monthly income.
6. Can You Work While Collecting Social Security?
Yes, you can work and collect benefits at the same time. However, if you’re under your FRA and earn more than the yearly limit, your benefits may be reduced.
Don’t worry—the money deducted will be added back to your monthly payments once you reach FRA.
7. How to Apply for Social Security Benefits?
You can apply for Social Security benefits anytime between age 62 and 70. Here’s how to apply:
- Online: Use the retirement application on the Social Security website.
- By phone: Call 1-800-772-1213 (Monday-Friday, 8 a.m. to 7 p.m. local time).
- In-person: Visit your local Social Security office. Call ahead to schedule an appointment.
Pro tip: You can apply up to 4 months before you want your benefits to start.
8. Planning Is Key
Whether you’re planning to retire soon or thinking ahead, knowing these details can help you maximize your benefits. Keep track of updates, and make sure you’re fully informed before making decisions about your retirement.
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