There will be changes in social security at the beginning of the new year. By January 2025, the retirement age will increase. In 2023, France sees a similar change in the retirement eligibility of its residents, with the age moving from 62 to 64. So, what is the new retirement age in America? Learn about all the coming changes to Social Security benefits below.
How is Social Security changing in 2025?
according to Yahoo! financeRetirees with Social Security benefits will receive a 2.5 percent cost-of-living adjustment (COLA), with payments beginning in January 2025. For recipients who become eligible for benefits in 2025, monthly average indexed earnings will be calculated with three multipliers: 90 percent, 32 percent and 15 percent. While the percentage will remain the same, the “turning point” – the money to which the percentage applies – will change.
Per Yahoo!The highest amount a person retiring at their Social Security retirement age in 2025 will make is $4,018 per month.
The outlet also reported that the contribution and benefit base will increase from $168,600 to $176,100 in 2025. This number is known as the “Social Security maximum taxable earnings.”
Yahoo! It also reports that if someone reaches full retirement after 2025, up to $1,950 of monthly income can be exempted. If a person reaches their full retirement age during 2025, up to $5,180 per month will be exempt.
What is the Social Security retirement age?
According to KTLA, the retirement age is being raised to 67 in 2025 for people born in 1960 or later. Americans, however, can choose to start collecting Social Security when they turn 62, but it will be a lower amount. Anyone who waits until age 70 to retire can receive a larger amount of Social Security benefits.
How to Calculate Your Social Security Benefits
The Social Security Administration has an online calculator for anyone to use. Here, you can calculate how much your potential Social Security benefits could be in the future.
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