Social Security Announces 2025 COLA

The Social Security Administration (SSA) announced that monthly Social Security benefits will increase by 2.5% beginning January 2025. The SSA estimates that the average monthly benefit for all retired workers will increase from $1,927 to $1,976.

The SSA also announced changes to other limits.

• The maximum amount of earnings subject to the Social Security tax for all workers will increase from $168,600 to $176,100. (There is no earnings limit on the Medicare tax.)
• The earnings limit for workers who are younger than full retirement age increases from $22,320 to $23,400.  SSA deducts $1 from the benefit for each $2 earned over $23,400.
• The earnings limit for those reaching full retirement age in 2025 increases from $59,520 to $62,160. SSA deducts $1 from benefits for each $3 earned over $62,160 until the month a worker reaches full retirement age. After reaching full retirement age, there is no earnings limit and no reduction.

For more information, please review the 2025 Social Security Changes Fact Sheet. If you have any questions, please contact the JRB at 888-JRB-FREE (572-3733) or staff@jrbcj.org.

October 2024