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Roughly 25% of these individuals get 90% or more of their income from Social Security.
While it is indeed higher, it might not be quite as high as benefit recipients might have hoped.
Heres what retirees should know aboutchanges to Social Security benefits heading into 2025.
When you break it down, this is roughly $50 more each month.
If you receive SSI, those payments will increase on Dec. 31, 2024.
For context, the COLA increase in 2024 was 3.2%.
Its averaged out at about 2.6% over the past decade.
For the 12 months ending in September 2024, the average inflation rate has been 2.4%.
This is 0.1% lower than it was last year.
Ideally, the 2.5% increase will match inflation going into 2025.
This means the benefit amount will make up for any increased everyday costs.
Specifically, themaximum taxable earningswill increase from $168,600 to $176,100.
With this change, employees will pay up to $10,918.20 in 2025, compared to $10,453.20 currently.
The employer will pay the other $10,918.20.
Note that self-employed individuals will have to continue paying the full 12.4% on their own.
Thats up to $21,836.40 a year in Social Security tax.
This tax will only apply to the first $176,100 of someones earnings.
Any additional earnings wont be taxed.
This could be quicker than waiting for the notice to arrive via mail.
you could also sign up for email or text alerts regarding any changes to your benefits.
Medicare is also set to change in 2025, so head toMedicare.govfor more information.
Updates there start in late November.
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