1.  Cost-of-Living Adjustment (COLA):

  • Social Security benefits will increase by 2.5% in 2025 due to lower inflation, compared to 3.2% in 2024.
  • Average monthly retirement payments will rise by $49, from $1,927 to $1,976 starting in January.
  • COLA applies to all types of Social Security benefits and Supplemental Security Income (SSI) for those with low incomes or disabilities.

2. Medicare Premiums:

  • The standard monthly Medicare Part B premium will increase from $174.70 to $185.
  • This increase will reduce the COLA benefit for most Social Security recipients by $10.30 monthly, as premiums are usually deducted from Social Security payments.

3. Social Security Office Appointments:

  • Starting January 6, 2025, most visits to Social Security offices will require an appointment.
  • You can schedule an appointment by calling 800-772-1213 or contacting your local office. Many services are also available online through a My Social Security account.
  • Social Security offices will still help people who can’t or don’t want to make an appointment. Walk-in service will be available for: vulnerable populations, Military personnel, people with terminal illnesses, those needing immediate or specialized help
  • These individuals can visit field offices without scheduling  in advance.

4. Full Retirement Age (FRA):

  • FRA is the age to receive 100% of your Social Security benefit. For those born May 2, 1958, to February 28, 1959, FRA will be reached in 2025 (66 years and 8–10 months).
  • You can claim benefits as early as 62, but payments will be reduced. Waiting past FRA increases payments by 8% per year until age 70.

5. Social Security Taxes:

  • Social Security is funded by a 12.4% tax on wages, split between employees (6.2%) and employers (6.2%).
  • In 2025, the tax applies to earnings up to $176,100, up from $168,600 in 2024.

6. Earnings Test for Early Benefits:

  • If you work while receiving Social Security benefits before FRA, some benefits are reduced based on earnings.
  • In 2025, $1 is deducted for every $2 earned above $23,400 (up from $22,320 in 2024).
  • The rules ease in the year you reach FRA, and once you hit FRA, there’s no limit on earnings.

7. Qualifying for Benefits:

  • To qualify for Social Security retirement benefits, you need 40 work credits (about 10 years of work).
  • In 2025, you earn 1 credit for every $1,810 of earnings, up to 4 credits annually.
  • These changes reflect adjustments for inflation, wage trends, and efforts to improve service efficiency.