2 days Ago By Jacob Willeford
SOME significant changes are coming in the New Year for Social Security recipients, including a check increase. About 72.5 million Americans depend on a program from the Social Security Administration (SSA).
Those programs offer financial support to those who are retired , disabled, or survivors after the death of a spouse, divorced spouse, child, or dependent of someone who paid Social Security taxes . Most recipients know that the monthly check they get in the mail as part of their benefits arrives on Wednesdays, depending on their birthday. They also know that the cost-of-living adjustment (COLA) is announced in October of each year, which will determine how much money they get in the following year.
Cost-of-living adjustments are made based on inflation rates and determine what monetary amount would help Americans comfortably get what they need to live in the current economy. Read More on Social Security The COLA adjustment announced on October 10 was 2.5%, the lowest increase in about four years.
Still, it's floating around the historical average of about 2.6% and means an additional $48 per month for each check throughout the year, or $576 total. With the COLA adjustment, the average Social Security payment will be $1,968.
Although retirees could benefit even more. Most read in Money WAIT IT OUT So long as they wait until what's defined as the full retirement age , determined by the SSA, they can get 100% of benefits. That number is 67 for anyone born after 1960 and means those who wait until then to stop working get $4,018 per check.
This is up from $3,822 last year. Single disabled, widows, and widowers will see their payments bumped up to $1,832. Those who are disabled with a spouse and one or more children will have an increase to $2,826 monthly.
It's important to note that all of the listed totals are expected averages and are subject to change depending on factors personal to each recipient. Social Security payments are issued on the second, third, or fourth Wednesday of each month based on the recipient's birthdate: Second Wednesday : For individuals born between the 1st and 10th of the month Third Wednesday : For those born between the 11th and 20th Fourth Wednesday : For those born between the 21st and 31st Increases will arrive when payments for 2025 begin in January. TAX CONSIDERATIONS Those Americans still working should also remember that there is a limit on the amount of earnings that can be taxed by the SSA.
It's defined as the "maximum taxable earnings" and changes annually along with the COLA based on increases in average wages nationwide. As a result, the more you make, the more is taxed. In 2025, maximum earnings will go up to $176,100 from $168,600.
Read More on The US Sun There could also be extraordinary money some Americans could save if President-elect Donald Trump makes specific changes to Social Security. Still, an economist exclusively told The U.S.
Sun that Social Security is quietly "screwing people it was designed to help.".
