Social Security Benefit Changes Impact 2025 Retirees

In 2025, Social Security beneficiaries face new income limits that could affect their payments if they choose to work. Those under Full Retirement Age (FRA) can earn up to $23,400 before reductions kick in, while those reaching FRA can earn up to $62,160 without penalties. A recent 2.5% cost-of-living adjustment (COLA) has been implemented for Social Security payments, but many retirees feel it is insufficient to keep up with rising expenses, particularly in housing and healthcare. Polls show that 54% of retirees believe the COLA does not adequately match their increased costs, and many are disappointed to find their benefits do not meet the anticipated $1,800 monthly payment. The exact amount retirees receive depends on lifetime earnings, claiming age, and the application of COLA adjustments. As such, understanding these intricacies is crucial for retirees to maximize their benefits and manage expectations for their financial future.