Social Security Wage Cap and Benefits Adjustments for Wisconsin in 2025!

Race Day Live A few changes are coming to Social Security in 2025, affecting both beneficiaries and workers who contribute through payroll taxes.

While most average earners in Wisconsin won’t see significant changes, those at the highest and lowest income levels will experience some adjustments.

Additionally, a cost-of-living adjustment (COLA) will impact all 1.2 million Wisconsinites receiving Social Security benefits.

Here’s a breakdown of what’s changing this year.

Higher Wage Cap for Social Security Taxes

Each year, a wage cap determines the maximum amount of earnings subject to Social Security taxes.

Employers and employees each pay 6.2% of earnings into Social Security, and in 2025, the wage cap is increasing.

• In 2024, the wage cap was $168,600.
• In 2025, it has increased to $176,100.

This means those earning $176,100 or more will pay up to $10,918 in Social Security taxes, about $465 more than last year. Any income above this limit is not taxed for Social Security.

For context, the median household income in Wisconsin was $75,670 in 2023, according to the U.S. Census Bureau. This means most Wisconsin residents will not be affected by the wage cap increase.

Changes to Social Security Work Credits

To qualify for Social Security benefits upon retirement, you need 40 “work credits.” A person can earn a maximum of four credits per year, with each credit tied to a specific earning threshold.

• In 2024, a person had to earn $1,730 to get one credit.
• In 2025, this amount has increased to $1,810.

This means that in 2025, you must earn $7,240 to earn all four credits for the year, up from $6,920 in 2024.

This change mainly affects part-time workers, caregivers, and parents who may not meet the new earnings threshold.

Full Retirement Age Increasing in 2025

Social Security benefits can be claimed starting at age 62, but waiting until full retirement age (FRA) ensures higher monthly benefits.

The FRA has been gradually increasing and is higher for those born in later years.

• For people born between May 2, 1958, and February 28, 1959, the full retirement age in 2025 is 66 years and 10 months.
• The FRA for people born in 1960 or later is 67 years.

Waiting until FRA or even later (age 70) can significantly increase monthly Social Security payments. In 2024:

• Retirees at 62 received a maximum of $2,710 per month.
• Those at full retirement age received up to $3,822 per month.
• Those waiting until age 70 received up to $4,873 per month.

Read More:

• Viral PSA Warns Americans to Print Social Security Statements Immediately!
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Cost-of-Living Adjustment (COLA) for 2025

Social Security benefits are adjusted annually to keep up with inflation. In 2025, the COLA is increasing by 2.5%.

• In 2024, the COLA was 3.2%.
• The 2025 increase is smaller but still provides an average monthly raise of $50.
• The average Social Security check will rise from $1,907 to $1,957 in 2025.

While this increase helps with rising costs, it is the smallest COLA adjustment in three years.

When Will Social Security and SSI Checks Arrive in 2025?

Social Security checks are sent out on Wednesdays, based on the recipient’s birth date:

• 1st-10th of the month: Paid on the second Wednesday.
• 11th-20th of the month: Paid on the third Wednesday.
• 21st-31st of the month: Paid on the fourth Wednesday.

SSI (Supplemental Security Income) payments are sent on the first of each month.

Final Thoughts

While most Wisconsinites won’t see major changes to their Social Security taxes, those earning above the wage cap will pay more.

Additionally, changes to work credits and full retirement age may affect when people choose to retire. The 2.5% COLA increase will provide some financial relief, though it is smaller than in previous years.

Staying informed about these updates can help you better plan for your Social Security benefits in 2025 and beyond.

Reference

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