Retirees receive the maximum retirement benefits at the full retirement age via the Retirement benefit. With the 2025 COLA increase, many of the retirees are wondering about their Social Security retirement payouts starting from January 2025. The article covers the Social Security Retirement 2025 payout and other changes.
Based on the 2025 COLA 2.5% increase, the retirees who qualify for the Social Security retirement benefit will receive a maximum monthly payment of $4018 at full retirement age from $3822 in 2024.
$4,018 Social Security Payment
The Social Security Administration has announced the 2.5% COLA, increasing the Social Security benefits payouts for the next year. The adjustment was made keeping inflation in mind to ensure the recipients can cover their expenses with the rising living cost, especially the elderly who depend on Social Security benefits.
With retirement benefits, the recipients also unlock various family, spouse, and dependent children benefits. The Social Security retirement benefit is the payment you get back as the Social Security funds come from the payroll taxes you pay while working. The average Social Security all retirees workers will receive is $1976 a month.
Who receives the Social Security benefit?
The US people who meet the following eligibility requirements can receive the full retirement age benefit via Social Security:
- You have worked, paid payroll taxes, and earned at least 40 credits from 10 years of work. If you have stopped working before 40 credits, your payment will be reduced.
- People who have attained the full retirement age of 66, which is between 1943 and 1954, increase if you were born from 1955 to 1960 until it reaches 67.
The maximum payout of $4018 for 2025 is for people who have attained the full retirement age, however, if you are age 62 or older, you can also apply for the retirement benefit based on your earned credits and receive payment lower than the maximum amount.
Children may be eligible for the monthly benefit based on the following criteria :
- Your child must be dependent on your tax information and age should be under 18
- If he/she is attending full-time high school and aged 18 or 19,
- Your child has a disability or serious medical condition at any age
Factors that affect your Social Security Retirement amount
The retirement benefit payment depends on various factors that can reduce or increase your payment. Here are the factors that affect your Social Security retirement payout:
- Your retirement plan: If you apply for early retirement at the age of 62, your social security payment may differ or be reduced from the full retirement age payment that you may have received at the full retirement age.
- Your Medicare plan: If you have applied for the Social Security Medicare Part A and Part B health insurance plan, the premium from the plan will be deducted from your Social Security benefits.
- Continue to work: If you continue to work between age 66 and 67 until 70, you increase your future retirement benefits as you earn more credits. The administration adds 8% to your retirement benefit when you delay your Social Security benefits.
- Continuing with work while receiving Social Security: If you continue to work and receive the retirement benefit, your payout may reduce if your income comes under the tax bracket when your income exceeds $25,000 a year (individually) or $32,000 (filing jointly).
- Current or former spouse works: If your spouse or ex-spouse works you can get additional money if they also reach retirement age. You can receive survivor benefits if they have died or their retirement benefit.
When will you receive the $4018 Social Security benefits?
The Social Security benefits based on the 2025 COLA increase will be effective from January 2025, so the recipients can expect their increased payouts in January 2025. The SSA pays the monthly Social Security on the second, third, and fourth Wednesday of the month based on their DOB.
The Social Security beneficiaries can determine their payment date based on the following payment rules:
- Retirees with birth dates ranging from 01 to the 10th of the month will receive their payout on II Wednesday.
- Retirees with birth dates ranging from 11 to the 20th of the month will receive their payout on III Wednesday.
- Retirees with birth dates ranging from 21 to the 31st of the month will receive their payout on IV Wednesday.
People who are Social Security recipients before May 1997 or qualify for Supplemental Security Income receive the payment every month on the 3rd day. However, if the payday falls on a public holiday or weekend, the recipients can expect the payment early on the business day before the payment date.
How to apply for the Social Security retirement benefit?
The retirees who wish to receive the Social Security benefit must ensure at what age they wish to apply for the benefit as it may reduce their payout. When you are sure of the retirement age you wish to apply for the Social Security benefits, you can follow any of the following ways to complete the application process:
- Online: At the Social Security Administration’s official website, you can apply online for Social Security efficiently.
- Offline: You can set an appointment at your local SSA offices to apply for the benefit by calling 1 800 772 1213 and submitting the Social Security application form with supporting documents, such as Social Security number, mailing address, etc.
After you submit your Social Security application, you can receive the benefit after a month (if it gets approved) as it takes time for the authority to review your application. Hence, the administration advises the citizens to apply at least four months before you are expecting to receive the benefit.
