There were some changes to Social Security this year for people who get benefits from the Supplemental Security Income (SSI) and Retirement, Survivors, and Disability Insurance (RSDI) programs.
Being older, you should learn as much as you can about Social Security, even if it doesn’t seem interesting. That is, unless you are already very rich. Also, 42% of women and 37% of men who do get payments get at least 50% of their income from Social Security.
In August, the average monthly amount for retirement was about $1,920, or about $23,000 a year. A lot of people get more than that, but that’s still just the average and not much. Even better, benefit checks generally go up over time, and rules are changed as time go
1. A new cost of living adjustment (COLA) is coming in 2025
Retirement benefits are usually subject to a cost-of-living adjustment (COLA). Here are a few current COLAS:
| Year | COLA increase |
| 2015 | 1.70% |
| 2016 | 0% |
| 2017 | 0.30% |
| 2018 | 2% |
| 2019 | 2.80% |
| 2020 | 1.60% |
| 2021 | 1.30% |
| 2022 | 5.90% |
| 2023 | 8.70% |
| 2024 | 3.20% |
Even if those COLAs seem small, a $60 raise every month adds up to $720 more in a year. The higher edge lasts for years and usually gets even bigger the next year. The most current estimate from the Senior Citizens League is that the cost of living adjustment percentage won’t be made public until October. The real number should be posted on the Social Security Administration’s website on October 10.
Keep in mind that you should usually wait until you are 70 years old to start getting Social Security payouts if you want to get the most money from it overall. It will also maximize your reward, which means that each COLA you get will earn you more money. A 3% increase in a $2,500 benefit would mean an extra $75, while a 3% increase in a $2,000 benefit would mean an extra $60.
2. The earnings test limit will rise nearly up to $60,000
Another number that goes up every year is the Social Security earnings cap. This rule applies if you start getting Social Security payments before you reach full retirement age and are still working. That’s 67 for people born after 1960 and 66 or 67 for most other people.
If this sounds like you, you should know that Social Security will only lower your payments if you make a certain amount of money.
If you don’t hit full retirement age this year, Social Security will cut your monthly payments by $1 for every $2 you make in 2024 that is more than $22,320. For people who hit full retirement age this year, the limit is a more generous $59,520.
Benefits are cut by $1 for every $3 over the limit. Don’t worry too much, though. Social Security will change your future payments to make up for the money they took away, so don’t stress out too much. so as not to lose money.
3. The earnings limit will rise next year
Of course, you may not know that not all income is taxed by Social Security. Once you reach a certain amount, your gains are no longer taxed. The cap for 2024 is $168,600, which is too much for most people to pay.
This means that someone making $168,600 and someone making, say, $33,168,600 will both pay the same amount of tax to Social Security.
It shouldn’t be a wonder that a lot of people think this is unfair. Getting rid of this cap is one of many ideas that have been put forward to improve Social Security. Most likely, the new number will come out in October. However, the wage cap in 2025 will likely be higher.
4. Maximum Social Security benefits will also increase
You can have your Social Security benefits increased in several ways, but the amount you can have increased is limited. Currently, beneficiaries who meet the full retirement conditions and qualify for the maximum benefit payment can expect to receive up to $45,864 per year, which means earning $3,822 per month.
It will be slightly higher in 2025. It’s very difficult to get the maximum benefit in either scenario, but you can increase your benefits slightly by waiting until you’re 70 to claim them. Very difficult. Almost impossible.
5. More states may decide not to impose taxes on Social Security income
In 2017, Kansas, Missouri, and Nevada joined the 37 states that did not tax their people’ Social Security benefits. There are now 41 states and the District of Columbia that do not pay Social Security, but the federal government does. Like, 42 or 43 states are expected to do the same thing in the next few years.