Social security will change at the start of the new year. Come January 2025, the retirement age will increase. In 2023, France saw a similar change to its residents’ retirement eligibility, with the age switching from 62 to 64. So, what’s the new age to retire in the U.S.? Find out all the changes that are coming to social security benefits, below.
How Is Social Security Changing in 2025?
According to Yahoo! Finance, retirees with social security benefits will receive a 2.5 percent cost-of-living adjustment (COLA) with the payment they receive in January 2025. As 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 percentages will remain the same, the “bend points” — the money that the percentages apply to — will change.
Per Yahoo!, the highest amount that someone who retires at their Social Security retirement age in 2025 will be $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 taxable maximum earnings.”
Yahoo! also reports that if someone reaches full retirement after 2025, monthly earnings up to $1,950 can be exempt. 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 those who were born in or after 1960. Americans, however, can choose to start collecting social security when they’re 62, but it will be a reduced amount. Anyone who waits until they’re 70 years old to retire can collect a higher 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.