One of the subjects that the Social Security Administration will shortly amend once more is the Full Retirement Age (FRA). In actuality, it has risen gradually until it hits 67 for people born in 1960 or after.
For instance, your Full Retirement Age is 66 years and 10 months if you were born in 1959. You are 66 years and 8 months old if you were born in 1958.
In 2025, anyone born between May 2, 1958, and February 28, 1959, will be eligible for full retirement. FRA is the time at which you are eligible to collect all of your benefits, without any reductions or credits that have been postponed.
Social Security announces new taxable maximum
Additionally, the Administration plans to increase the current $168,600 taxed maximum to $176,100. You might have to pay more in taxes if you make a lot of money.
For your knowledge, even if you surpass the taxable maximum, you will no longer be required to pay Social Security taxes at that level. As a result, taxes will only be applied to profits that fall below the new taxable maximum.
At age 62, you will still need 40 work credits to qualify for benefits, but getting one work credit will require more wages. It will now cost $1,810 instead of $1,730. You need to have made at least $7,240 annually to receive 4.
Social Security announces new Social Security earnings test
You will be subject to further restrictions if you were employed and received Social Security payments before the FRA. For instance, $23,400 will be the new yearly sum. There is good news about the next topic: SSA taxes will not alter. You and your employer will both continue to pay 6.2%.
For most services, you will need to make an appointment to visit Social Security offices starting January 6, 2025. Medicare premiums will also be a major change for Social Security.
By 2025, regular premiums would actually rise to $185. In 2024, the current sum is $174. Therefore, you will have to spend a little over $10 more if you want it.
Lastly, Social Security and SSI benefits will see a 2.5% COLA rise. On average, this will cost $38 for SSDI beneficiaries and $49 for Social Security users.
See Also: Social Security: How to Recuperate Your 2025 Disability Benefits
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Eliot Pierce is a dedicated writer for ChiefsFocus.com, covering local crime and finance news. With a keen eye for detail and a passion for storytelling, Eliot aims to provide his readers with clear and insightful analysis, helping them navigate the complexities of their financial lives while staying informed about important local events. His commitment to delivering accurate and engaging content makes him a valuable resource for the community.