The Social Security Administration is a way for people to get retirement payments from the United States government. People who are retired in 2025 will get extra money from the COLA to help them deal with rising prices and inflation.
After the 2025 COLA was announced by SSA on October 10, 2018, retirement payments will go up by 2.5%. You can file for retirement as early as age 62 if you are planning to or are about to do so. This will make your payment 30% less. So, it would be smart to put off retirement until you are 70.
How to obtain the largest payment from Social Security after the 2025 COLA increase
When you file your taxes at age 70, you will get credits for years that you didn’t file until later. That is, if you file three years after your Full Retirement Age, which is 70, you will get an extra 24%. This extra cash has nothing to do with COLA.
The list of needs keeps going. It’s important to remember that the jobs you have pay taxes to the government. To get this big payment, you will only need to do work that the Agency does.
Besides that, the length of time you work is also important. The government can give some people money if they file at age 62 and have 40 work credits, which is equal to 10 years of work. You have to work for at least 35 years.
Last requirement to get $5,108 after COLA from Social Security
Finally, you must have worked and made the base amount of money for 35 years. This is also called the minimum amount that is taxed. The point at which you no longer have to pay taxes is reached if you make this much in a year.
When prices go up, so does this taxable limit. Payment amounts can be changed this way. For instance, after the COLA raise, the new highest amount of money that is taxed will be $176,100.
People in the US may be interested in finding out how much their new Social Security payments will be after the 2025 COLA increase. If you apply at age 70, the biggest check will be $5,108. Here are some other amounts:
- $4,018 if you file at Full Retirement Age
- $2,831 if you file at 62
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