Social Security in the United States is preparing to implement key changes that will impact millions of beneficiaries starting in 2025. The Social Security Administration (SSA) confirmed that a group of retirees will be able to access an extra amount in their monthly payments, as long as they meet certain age and work record requirements. Below, we tell you in detail everything you need to know to take full advantage of this benefit.
An increase with official backing
According to the latest announcements from the SSA, those who defer applying for their benefits until the age of 70 will see a significantly higher amount reflected in their deposits than those who claim their retirement at 62 or at the full retirement age. This strategy, which seeks to encourage workers to remain longer in the labor force, will allow withdrawals in 2025 to increase significantly. As the official SSA website points out: “We consider how much you’ve earned over your lifetime to calculate your monthly benefit during retirement. The longer you wait to file, the higher your benefit amount will be, up to age 70.”
Thus, those who decide to wait until age 70 before claiming their benefits will be part of that group of seniors who will be able to receive extra monthly money. This measure, moreover, is part of the U.S. government’s strategy to strengthen the sustainability of the pension system, encouraging the postponement of the retirement age and reducing the financial pressure on the program.
How much will be collected at each age?
The exact amount that retirees will receive depends primarily on the age at which they start their pension. According to SSA data for 2025:
- Age 62: The monthly maximum will stand at USD 2,831, up slightly from USD 2,710 in 2024.
- Full retirement age (generally 66 or 67, depending on year of birth): The maximum benefit will be USD 4,018, up from USD 3,822 in the previous year.
- Age 70: Those who decide to wait until then will see a maximum payment of USD 5,018, up from USD 4,873 in 2024.
For those who have doubts about the impact of these amounts in their particular case, the SSA has a retirement calculator on its official website, where different scenarios can be simulated and the final benefits can be estimated.
COLA 2025: an increase of 2.5% (Social Security)
In addition to these changes in the amounts according to age, the SSA reported that the annual cost-of-living adjustment (COLA) will be 2.5% in 2025. Although this percentage is lower than previous years (such as 3.2% in 2024 or 8.7% in 2023), it represents a sign of economic stability after recent high inflation.
- Number of beneficiaries: About 72.88 million people depend on Social Security. Of these, 65.5 million receive regular benefits and 4.88 million participate in the Supplemental Security Income (SSI) program.
- Average benefit: With the 2.5% increase, the SSA estimates that the average monthly figure will increase from $1,788.12 (recorded at the end of 2024) to $1,976 in January 2025.
The reason for this annual adjustment lies in the need to protect the purchasing power of retirees in the face of inflation. The COLA is calculated based on the Consumer Price Index for Wage Earners and Clerical Workers (CPI-W) for the third quarter of each year and is applied automatically.
Who benefits from this additional Social Security payment?
- People who delay retirement until age 70: This is the group that, according to the SSA, will see the largest increase in their monthly deposits.
- Workers with high income history: The more years and high salaries accumulated in the record, the higher the final calculation of the benefit will be.
- Those who meet the minimum retirement age (62) but choose to wait: Even deferring it for a few months can mean a considerable increase in the pension.
It is important to highlight that requesting the benefit before the full age (66 or 67) causes a permanent reduction in the amount to be received. On the other hand, waiting beyond the full age until reaching 70 years of age increases the total amount of the monthly pension.
Application process and available resources
To access the maximum payment, interested parties must complete the retirement process through the SSA’s official channels. The agency recommends:
- Verify account statements: Through the “my Social Security” account, where years of contributions and estimated salary are published.
- Review the benefits calculator: Online tool to estimate the final pension according to the age of application and salary history.
- Attention to updates: In December of each year, the SSA sends notices with the new COLA amounts. Starting in 2025, for the first time, most beneficiaries will be able to access a simpler, more customizable notification design, according to the SSA itself.
What to expect in 2025?
SSA’s confirmation of the ability to receive extra monthly money starting in 2025 adds to a number of changes the agency has recently introduced to modernize and sustain the Social Security program. These include:
- Streamlined communication: digital notifications through the “my Social Security” account.
- Increased taxable ceiling: The Social Security taxable income limit increases to $176,100.
- Greater accessibility to information: Dissemination campaigns aimed at educating future retirees about the importance of strategic retirement planning.
Ultimately, retirees or near-retirees who are eligible to defer their claim until age 70 will be able to take advantage of a substantial additional payment in 2025. Coupled with the application of the 2.5% COLA, this measure seeks to ensure that, despite inflation and economic challenges, seniors retain and strengthen their purchasing power in retirement. Staying informed, reviewing calculators and consulting with the SSA will be essential to make the best decision in each individual case.
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