Changes in social security: the retirement age will increase, new rules starting from 2025
16 december 2024 в 18:13
Starting from the beginning of the new year, social security will change. As of January 2025, the retirement age will increase. In 2023, France saw a similar change regarding the retirement age for its residents, with the retirement age changing from 62 to 64. So what will be the new retirement age in the United States? Find out all the changes expected in social security below.
According to information from Yahoo! Finance, retirees receiving social benefits will receive a 2.5 percent cost of living adjustment (COLA) with the payment they will receive in January 2025. As for recipients who will become eligible for benefits in 2025, the average indexed monthly earnings will be calculated using three multipliers: 90 percent, 32 percent, and 15 percent. While the percentages will remain the same, the «bend points» — the money to which the percentages are applied — will change.
According to Yahoo!, the highest amount that anyone retiring in 2025 will be able to receive per month will be $ 4,018.
The publication also reports that the base for contributions and benefits will increase from $ 168,600 to $ 176,100 in 2025. This number is known as the «maximum taxable earnings for social security».
Yahoo! also reports that if someone reaches full retirement age after 2025, monthly incomes up to $ 1,950 may be exempt from taxes. If a person reaches full retirement age in 2025, up to $ 5,180 per month will be exempt.
According to KTLA, the retirement age will increase to 67 in 2025 for those born in 1960 or later. However, Americans can choose to start receiving social security at 62, but it will be a reduced amount. Those who wait until 70 to retire will receive a higher amount of social benefits.
The Social Security Administration has an online calculator that anyone can use. Here you can calculate how much your potential social benefits may be in the future
According to information from Yahoo! Finance, retirees receiving social benefits will receive a 2.5 percent cost of living adjustment (COLA) with the payment they will receive in January 2025. As for recipients who will become eligible for benefits in 2025, the average indexed monthly earnings will be calculated using three multipliers: 90 percent, 32 percent, and 15 percent. While the percentages will remain the same, the «bend points» — the money to which the percentages are applied — will change.
According to Yahoo!, the highest amount that anyone retiring in 2025 will be able to receive per month will be $ 4,018.
The publication also reports that the base for contributions and benefits will increase from $ 168,600 to $ 176,100 in 2025. This number is known as the «maximum taxable earnings for social security».
Yahoo! also reports that if someone reaches full retirement age after 2025, monthly incomes up to $ 1,950 may be exempt from taxes. If a person reaches full retirement age in 2025, up to $ 5,180 per month will be exempt.
According to KTLA, the retirement age will increase to 67 in 2025 for those born in 1960 or later. However, Americans can choose to start receiving social security at 62, but it will be a reduced amount. Those who wait until 70 to retire will receive a higher amount of social benefits.
The Social Security Administration has an online calculator that anyone can use. Here you can calculate how much your potential social benefits may be in the future
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