Social Security and Supplemental Security Income (SSI) benefits for more than 72.5 million Americans will increase 2.5 percent in 2025. Read more about the Social Security Cost-of-Living adjustment for 2025.
That limit in 2025 is $176,100. Employed individuals pay Social Security taxes through payroll deductions while self-employed individuals are responsible for paying both the employee and employer portions on their own. The Social Security Administration increased the benefit amount paid to recipients by 2.5% for 2025.
SUMMARY: Under title II of the Social Security Act (Act), there will be a 2.5 percent cost-of-living increase in Social Security benefits effective December 2024. In addition, the national average wage index for 2023 is $66,621.80.
But based on the latest Bureau of Labor Statistics data, The Senior Citizens League recently released its initial prediction that the 2026 COLA will mirror the 2025 COLA raise by staying at 2.5 percent.
The Senior Citizen's League (TSCL) has forecasted that the 2026 Cost-of-Living Adjustment (COLA) will be approximately 2.5%, based on the most recent data from the Bureau of Labor Statistics. This would mirror the 2025 COLA, indicating relatively modest inflation in the year ahead.
If your spouse dies, do you get both Social Security benefits? You cannot claim your deceased spouse's benefits in addition to your own retirement benefits. Social Security only will pay one—survivor or retirement. If you qualify for both survivor and retirement benefits, you will receive whichever amount is higher.
In 2025, the standard monthly premium for Medicare Part B will be $185, an increase of $10.30 from the 2024 amount. The deductible for Part B services will be $257, a $17 increase from the deductible of $240 in 2024.
Generally, the maximum Federal SSI benefit amount changes yearly. SSI benefits increased in 2024 because there was an increase in the Consumer Price Index from the third quarter of 2022 to the third quarter of 2023. Effective January 1, 2024 the Federal benefit rate is $943 for an individual and $1,415 for a couple.
Prediction for Social Security Benefits in 2030
If that trend continues, the average Social Security benefit for retired workers will increase 28% over the next seven years to reach $2,363 by 2030. This prediction is just that — a prediction. The exact number depends on wages and inflation over the next seven years.
The Medicare tax rate for 2025 remains at 1.45% of all covered earnings for employers and employees. The Additional Medicare Tax of 0.9% applies to wages of more than $200,000. While employers are required to withhold the additional 0.9% on covered wages over $200,000, there is no corresponding employer tax.
You aren't required to pay this tax on any income beyond the Social Security wage base limit. Employees and employers are each required to pay a 6.2% tax on wages. In 2025, the limit is $176,100, which means you'll pay no more than $10,918.20 in Social Security taxes ($176,100 x 6.2%) in 2025.
For 2025, Social Security beneficiaries and Civil Service Retirement System (CSRS) retirees are expected to receive a 2.5% COLA, while Federal Employees Retirement System (FERS) retirees, those hired in 1984 or later, will only get a 2% increase.
Starting in 2025, tax Social Security benefits in a manner similar to private pension income.
Have you heard about the Social Security $16,728 yearly bonus? There's really no “bonus” that retirees can collect. The Social Security Administration (SSA) uses a specific formula based on your lifetime earnings to determine your benefit amount.
In 2025, all beneficiaries will see a 2.5% increase to their Social Security benefit checks, thanks to an annual cost-of-living adjustment. Of note, the 2024 increase was 3.2%. This year's COLA is the lowest increase beneficiaries have seen since a 1.3% increase in 2021, reflecting a decrease in the pace of inflation.
The $1,000 per month rule is designed to help you estimate the amount of savings required to generate a steady monthly income during retirement. According to this rule, for every $240,000 you save, you can withdraw $1,000 per month if you stick to a 5% annual withdrawal rate.
You can start receiving your Social Security retirement benefits as early as age 62. However, you are entitled to full benefits only when you reach your full retirement age. If you delay taking your benefits from your full retirement age up to age 70, your benefit amount will increase.
To qualify to get $144 added back to your Social Security check, you can enroll in a Medicare Advantage plan that offers a Part B premium reduction or giveback benefit.
Most people pay no premiums for Part A. For Medicare Part B in 2025, most beneficiaries will pay $185 per month. Certain factors may require you to pay more or less than the standard Medicare Part B premium in 2025.
Each survivor benefit can be up to 100% of your benefit. The amount may be reduced if the women start benefits before their own full retirement age, but they don't have to share — the amount isn't reduced because you've had more than one spouse.
Ninety-five percent of never-beneficiaries are individuals whose earnings histories are insufficient to qualify for benefits. Late-arriving immigrants and infrequent workers comprise the vast majority of these insufficient earners.