People who get Social Security now must know about the changes that will happen in 2025. After all, the program changes every year, but only in small ways. People who are used to these changes aren’t surprised by them as often. For those who are new to the Social Security Administration this year, things may be a little less familiar when it comes to how the programs it runs work and the changes they have to make every year to stay current.
These are some of the chThe earnings test limit is increasing
These are good things for workers who keep making money while also getting retirement perks. There is something called the “Earnings Test Limit” that applies to these workers. If they make more than a certain amount of money, their benefits will go down. How much will depend on whether you leave work for good in 2025 or not?
People who won’t be fully retired until 2025 can only make up to $23,400 a year. For every $2 over that amount, their payments will be cut by $1. For people who will be full retirement age in 2025, the yearly exempt amount is $62,160. For every $3 over that amount, benefits will be cut by $1.
Higher maximum benefit
As a way to pay for all the different types of benefits, the Social Security Administration raises the highest benefit amount every year. The retirement bonus is the most well-known. It will rise from $4,873 per month in 2024 to $5,108 per month in 2025. To get this maximum benefit, you have to meet very strict requirements. For example, you must have worked for at least 35 years and regularly earn at least the maximum taxable amount, which for 2019 is $176,100. Also, people who get benefits have to wait until they are 70 years old to get the biggest sum.
The highest annual amounts are less for people who started getting benefits earlier. Up to $2,831 will be given to people aged 62 and up to $4,043 to people aged 67 and up. There are still big cash benefits to delaying benefits.
