One of the changes Social Security recipients will see in 2025 is an increase in the full retirement age.
This figure indicates the age at which workers can claim 100% of their retirement benefits based on their lifetime earnings.
For many years, the full retirement age was 65, according to the Social Security Administration, but that changed in 1983 through legislation passed by Congress that gradually raised that number in line with increases in life expectancy. .
Social Security COLA increase: How much will beneficiaries receive in 2025?
The full or “normal” retirement age has been steadily raised by two months for each year of birth in recent years.
For example, if you were born in 1958, you would reach full retirement age at 66 years and 8 months, but if you were born the following year, your retirement age would be 66 years and 10 months. AARP notes that all beneficiaries born between May 2, 1958 and February 28, 1959 will reach full retirement age in 2025. The retirement age for people born after 1960 will jump to 67.
Payment from birth year full retirement age $1,000 621943-195466 $750195566 and 2 months $741195666 and 4 months $733195766 and 6 months $725195866 and 8 months $716195966 and 10 months $7081960 and after 67 $700 (Credit: SSA)
Workers can choose to start receiving benefits at age 62 rather than waiting until full retirement age, but the amount will be reduced. People who can wait until age 70 to start receiving benefits will receive higher benefits.
Other Social Security changes planned for 2025 include reducing the cost of living adjustment from 3.4% to 2.5%. Maximum taxable income increases from $168,000 to $176,100. Appointment-based service at social security offices nationwide.
Source link
