Social Security Changes set for 2025

Social Security Changes Coming in 2025

Starting in 2025, Social Security applicants in the United States will face a new milestone as the full retirement age reaches its peak. This change is part of a gradual increase that began in 1983 to align with increasing life expectancies. 

Full Retirement Age Increase The full retirement age, which determines when workers can receive 100% of their retirement benefits, has been steadily rising. For those born in 1958, it currently stands at 66 years and 8 months. By 2025, individuals born in 1960 or later will have to wait until they are 67 years old to claim their full benefits.

Early and Delayed Retirement Options While workers can start collecting reduced benefits as early as age 62, waiting until full retirement age ensures they receive their complete lifetime earnings. Additionally, those who delay claiming benefits beyond their full retirement age can receive increased monthly payments through delayed retirement credits.

Cost-of-Living Adjustment In addition to the retirement age change, Social Security beneficiaries will see a modest 2.5% cost-of-living adjustment in January. This increase, based on the Consumer Price Index, will boost monthly retirement benefits by approximately $50.

Impact in Georgia The changes will affect a significant portion of Georgia's population. In 2023, over 1.4 million retired residents in the state were receiving Social Security benefits. These adjustments to the Social Security system reflect ongoing efforts to maintain its sustainability in the face of changing demographics and economic conditions. For detailed information on retirement benefits and eligibility, individuals are encouraged to consult the Social Security Administration's official website.