In a recent update affecting Social Security recipients, a 2.5% cost-of-living adjustment (COLA) has been implemented to help offset the impact of inflation on benefits. Despite the increase, concerns remain about the declining purchasing power of these benefits over time.
For those receiving a spousal benefit as of November 2024, the average monthly amount was around $909. With the 2.5% raise, this figure could now be around $932 per month, though actual averages may vary. Individuals with higher benefits prior to the adjustment can expect a larger increase based on a percentage of their existing benefits.
In another development, individuals born in 1959 are facing a higher full retirement age (FRA) due to legislative changes. Those born in 1958 have already reached an FRA of 66 and 8 months, while some born in early 1959 will hit an FRA of 66 and 10 months later this year. Early claiming of benefits can result in reduced checks, with penalties that vary based on the timing of the claim.
It is advised for those yet to claim benefits to consider waiting until reaching their FRA to maximize their spousal benefits. While Social Security retirement benefits offer delayed retirement credits up to age 70, spousal benefits do not allow for the same option. For further information on potential changes to spousal benefits, individuals are urged to reach out to the Social Security Administration for assistance.
The evolving landscape of Social Security benefits underscores the importance of staying informed about potential adjustments that may impact retirees’ financial well-being. By exploring strategies to maximize benefits, individuals can better plan for a secure retirement.
The text should not exceed 900 words.
