Social Security Changes 2024 – Check Amount, Eligibility & Payment Dates

The Social Security Administration changes benefits and the taxes that pay for them annually. The purpose of these 4 Big Social Security Changes is to maintain the program’s payment schedule according to the wage growth and inflation.

However, many adults have misconceptions about how the program operates, according to a Nationwide Retirement Institute survey. Since SSA benefits make up at least half of the retirement income for about half of retirees, any changes to the program would have a huge impact.

Social Security Changes 2024

According to the 2024 Social Security Survey, many participants had misconceptions about important topics like tax restrictions and inflation protection. Social Security will undergo a number of major changes in 2025 that may surprise both workers and retirees. These include changes to the retirement earnings test (RET) limits, changes to payroll taxes, an increase in maximum benefits, and a cost-of-living adjustment.

Big Social Security Changes In October

Administrated By	SSA
Program	Social Security Benefits
Country	USA
2025 Increase	2.5%
Payment Status	Annually adjusted (specific date varies)
Beneficiaries	Retired workers, disabled, and survivors
Category	Government Aid
Official Website	https://www.ssa.gov/

Social Security Benefits Increase

• A 2.5% cost-of-living adjustment to Social Security benefits is one of the major adjustments in 2025.
• Many people wrongly believe that Social Security benefits are not protected against inflation.
• However, COLAs have the goal to protect retirees’ benefits from inflation almost annually.
• The Consumer Price Index for Urban Wage Earners and Clerical Workers, which is used to calculate the COLA 2025, increased by 2.5% in the third quarter of 2024.
• As a result, the average retired worker will receive an extra $588 for the year, with benefits increasing from $1,927 per month in 2024 to $1,976 per month in 2025.

Higher Payroll Taxes for Some Workers

• Employees don’t pay Social Security taxes on all of their income. There is a limit called the “taxable maximum.”
• In 2025, this limit will increase to $176,100 (up from $168,600 in 2024). Only income up to this limit is taxed for Social Security.
• Both employers and employees pay 6.2% of their income toward Social Security taxes.
• The most someone could pay in Social Security taxes will increase by $465, from $10,453 in 2024 to $10,918 in 2025 because of the higher taxable maximum.

Maximum Benefits for New Retirees Will Increase

• There is a limit to how much retirees can receive from Social Security.
• A survey found that 40% of people wrongly thought there was no limit on benefits.
• In 2025, the highest monthly Social Security benefit for new retirees will be $5,108, up from $4,873 in 2024.
• To get the maximum benefit, you must have earned the maximum taxable income for at least 35 years.
• The increase in benefits is based on changes in average wages, so those who contribute more over time receive more.

2025 Retirement Earnings Test Limits

• Finally, the retirement earnings test (RET) limits will see an increase in 2025.
• If you’re not reaching full retirement age (FRA) in 2025, you can earn up to $23,400 without affecting your Social Security benefits.
• If you reach FRA in 2025, the limit is higher $62,160 before your benefits are reduced.
• If you earn above these limits, part of your Social Security benefits may be withheld.
• Any benefits withheld because of excess earnings are not lost forever. Once you reach FRA, Social Security increases your monthly payments to make up for the months your benefits were reduced.

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