social security hacked today
Among the changes Social Security recipients will view in 2025 is a higher full retirement age.
For years the full retirement age was 65 but changed with a law passed by Congress in 1983 to gradually raise that number to match growing expected lifespan according to Social Security Administration.
The number marks the age at which workers become eligible to claim 100 percent of their retirement benefit based on lifetime earnings.
Among other Social Security changes coming in 2025 are smaller cost of living adjustment at 2.5% down from 3.4% an increase in maximum taxable earnings from 168000 to $176100 and appointment based services at Social Security offices countrywide.
The full or normal retirement age has been creeping up in latest year by two months for each subsequent birth year.
If you born in 1958 for instance you would reach full retirement age at 66 years and 8 month but if you born in following year that retirement age climbs to 66 year and 10 months.
Birth Year Full Retirement Age Payout from $1000 Benefit if taken at 62
- 1943-1954 66Â $750
- 1955 66 and 2 months $741
- 1956 66 and 4 months $733
- 1957 66 and 6 months $725
- 1958 66 and 8 months $716
- 1959 66 and 10 months $708
- 1960 and later 67 $700
Workers can elect not to wait until full retirement age and start receiving benefit as early as 62.
Workers will have to earn a little more to become eligible for Social Security and some may pay more in taxes.
All Social Security beneficiaries will view their checks increase next year thanks to 2.5 COLA.
Full retirement age FRA is increasing which leads to penalties for early claimers.
There are five mega changes coming your way in a few short weeks. They may not apply to you but have effect on your benefits now or in future.
Higher earnings test limits
The Social Security earning test withholds benefit from workers under FRA who claims checks while earning an income over threshold.
In 2024 you lose $1 for every $2 you earn over $22,320.
Those who reach their FRA in 2024 lose $1 for every $3 they earn over $59,520 if they reach this amount before birthday.
These limits will spike to $23,400 and $62,160 for 2025. This mean these workers can earn more before having money withheld from checks.
Increased full retirement age FRA
Your FRA is age at which you qualify for your full social Security benefit.
The government assigns this to you based on your birth year.
In 2024 FRA is 66 and 8 months but it will spike to 66 and 10 months in 2025.
You will view same thing in 2026 when FRA reaches 67 for those born in 1960.
Higher ceiling on Social Security payroll taxes
You can pay Social Security payroll taxes on first $168,600 you earn in year.
The high limits mean most people pay these taxes on all of income.
Changing definition of social security credit
You must earn 40 social security work credits throughout your career to be eligible for retirement benefits.
A credit is dollar amount of income that you play Social Security taxes on throughout year.
2.5% cost of living adjustment
The mega Social Security news from last moths has been 2025 COLA which came in at 2.5%.
This is below 3.2% increase retirees saw past year.
It set to bump average monthly check from $1927 to $1976 giving typical beneficiary $588 more to spend during year.
