Social Security Announces 2 More New Changes After The COLA – Everything is Going to Change for Retirees

The Social Security announces 2 more changes in the monthly payments given to the eligible citizens of America. The Social Security benefits are the monthly payments the authorities provide to help low-income citizens manage their monthly expenses.

The changes in the payments occur due to increased cost of living adjustments made by authorities. This payment will help citizens balance their monthly budgets and plan their expenses effectively to avoid conflict.

Social Security Announces 2 More Changes

The Social Security Administration is the department that works to benefit low-income individuals and families. Seniors, disabled people, and retired workers who rely entirely on authorities for their living also benefit from this payment.

Social Security announced 2 more changes, which will occur in the monthly benefits distributed among the beneficiaries. As we know, the COLA increase for 2025 will be released by the SSA. This increase could impact the vulnerable citizens’ lifestyles to improve their living standards.

Social Security Changes Overview

Authority Name	Social Security Administration
Program	Social Security Benefits
Country	USA
Amount	Varies (2.5% COLA for 2025)
Wage Cap (2024)	$168,600
Wage Cap (2025)	Expected to increase
Category	Government Aid
Official Website	https://www.ssa.gov/

Earnings-Test Limits for 2025

One of the fringe benefits that Social Security provides is the ability of beneficiaries to work and earn. Like everything under Social Security, however, there are limits before you reach full retirement age, above which your earnings impact your benefit size.

• Some of your Social Security retirement benefits will be taxed if you earn more than $22,320 by year-end 2024 before reaching your full retirement age.
• The limit is higher for a retiree who attains full retirement age 2024: $59,520.
• If you cross the earnings limit, you will experience withholding of your Social Security benefit amount.
• These withheld amounts are not lost but recovered when you attain the full retirement age.
• The earnings-test limits will increase in 2025. This would mean that, for example, the retiree could earn more without diminishing the benefit.

The withholding is only for a short period, but with adjustments after withholding, it may become instead trying for people with pressing needs depending on their Social Security check.

2025 Social Security Wage Cap

• Social Security tax applies only up to a certain level of income. The wage base in 2024 will be $168,600, and any earnings over this threshold will not be subject to Social Security tax.
• Based on inflation and wage growth, the wage cap may increase in 2025 to calculate how much of the worker’s earnings will be subject to Social Security taxes.
• It affects system stability since raising the wage cap will hit the worker’s pocket and the entire Social Security system. More money comes into the coffers in taxes when the wage cap increases.
• As it would increase Social Security revenue through raising the wage cap, it supports long-term sustainability and benefits program policy-makers from possibly increasing taxes for reduced benefits.

What’s New from the SSA

True, all eyes might be on the COLA announcement, but other updates from the SSA, such as earnings-test limits and wage cap changes, are also important. These affect what retirees can earn without penalty, so the flow of funds into the Social Security system may begin to change.

So be sure to check the SSA’s website in October 2024 for updates. Keeping abreast of these changes serves the retiring lot well and, by extension, the working population, thus helping them plan their financial future much more effectively.

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