On Wednesday, April 9, millions of American retirees will get a fresh round of benefits from the Social Security Administration, which will include a 2.5% boost brought on by the Cost of Living Adjustment (COLA), which went into effect in January 2025.
In response to a proposal to assist retirees in offsetting growing living expenditures and inflation, beneficiaries do not need to take any action to see the change reflected in their benefits.
On April 9, retirees who started receiving Social Security benefits at age 62 and were born between the first and tenth of any given month will be eligible to receive their payments.
What is the April 2025 Social Security payout amount for retirees?
The precise amount of SSA benefits is based on the individual’s retirement age and lifetime earnings; for those who choose to retire at age 62, this is $2,831 per month.
However, retirees who wait until they reach full retirement age of 67 can anticipate receiving up to $3,822, or they can earn much bigger payouts up until age 70, with a maximum of $5,108.
The goal of this tiered benefit structure is to encourage deferred retirement whenever feasible while bolstering the Social Security program’s long-term viability.
2025 Social Security updates
2025 will see major changes to the Social Security system in addition to the ongoing growth in COLA.
Notably, higher-income people who still make contributions to the system are impacted by the rise in the taxable earnings cap to $176,100.
Additionally, the entire retirement age was gradually modified.
These modifications are intended to maintain the program’s stability for upcoming generations and represent its strategic reaction to shifting demographic and economic circumstances.
This information has been sourced from Marca.
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