Unlock Bigger Social Security Checks in 2025 with These 3 Surprising Secrets!

The image is sourced from Getty Images. Retirees are not the only ones receiving a bonus; older adults on spousal, disability, or survivors benefits will also see a 2.5% Cost of Living Adjustment (COLA) starting in January. While next year’s COLA is modest, it indicates a slowdown in inflation. This adjustment is linked to changes in the Consumer Price Index. Although a smaller increase may seem disappointing, the upside is that daily expenses are gradually becoming more affordable, allowing retirees to retain more of their benefits.

In 2024, the maximum Social Security benefit is $4,873 per month, but in January, this will increase to $5,108 per month, the highest payment ever. To reach this maximum, individuals must work for at least 35 years, delay benefits until age 70, and consistently hit the maximum taxable earnings limit, which will be $176,100 per year in 2025. This change may not affect current retirees, but those planning to retire in 2025 or later could potentially receive higher benefits.

Individuals can work part-time or full-time after claiming Social Security, but if they are below their full retirement age (FRA), a portion of their benefits may be withheld. The retirement earnings test imposes different limits based on proximity to FRA in 2025. These limits will be slightly higher than in 2024, providing more flexibility for earning before experiencing benefit reductions.

These withholdings are temporary, and benefit amounts will be recalculated at FRA. Being aware of these changes for 2025 can help individuals adjust their budget accordingly. Considerations about optimizing Social Security benefits can significantly impact retirement income. Discovering lesser-known strategies can potentially increase annual benefits by $22,924 and provide a more secure retirement.

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