July 14, 2024

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Social Security: Major Changes to 2025 | USA | composition

He Social security of America It is an important part of financial security for millions of citizens. So, get ready A series of key changes for 2025, thereby seeking to provide greater benefit to its members. These changes include cost of living increases and variations in benefits. Here’s what’s planned for next year from this general policy.

These changes are also desired Social security is adaptable to the urgent needs of citizens Thus, it can guarantee adequate economic environment to its beneficiaries.

Before the changes surprise you, you should Pay attention to what is being produced in Social SecurityBe able to take timely action on your income and deductions.

What are the key changes in Social Security by 2025?

Tail adjustment

To mitigate the effects of inflation, Social Security benefits will increase in 2025Based on the prices of products and services of the third quarter of the previous year.

According to this, it is expected that the notification will be released in October A 2.7% increase, according to calculations by the Senior Citizens LeagueThis brings the average monthly benefit of retired workers to US$51, bringing the total to US$1,967.

A Social Security office in the US (Photo: AFP)

Payroll tax increase

It is expected in 2025. The taxable income threshold will increase to US$174,900. As a result, some workers will pay up to $391 more in Social Security taxes.

For example, under 6.2% tax rate, a worker with income above US$174,900 There will be a retention US$10,844 Compared to their paychecks in 2025 US$10.453 of 2024.

Withholding Social Security benefits

when Social Security Beneficiaries Those who continue to work before reaching full retirement age have limits on withholding benefits. In 2024, they are set for higher revenues US$22,320With benefits cut, more so for high earners US$59,520 and approaching full retirement age.

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By next year, these limits are expected to be reached US$23,280 and US$61,800 respectively, allowing beneficiaries to earn more money before their benefits are reduced.

Once Beneficiaries reach full retirement age, these retention limits no longer apply. Also, the money withheld earlier will be gradually returned to them.

More information on Social Security

What is Social Security?

Social Security is a broad-based social insurance program that provides financial benefits to eligible individuals, including retired workers, people with disabilities, and family members of deceased workers.

Which agency administers social security?

Social Security in the United States is administered by the Social Security Administration (SSA), a federal agency of the United States government.

The agency oversees the implementation of social security regulations, benefit payments, eligibility, registration and enforcement across the country.

If I move to another state, will my SSI payment be affected?

According to the SSA, a retiree’s benefits will not change by moving to another state.

He emphasized that there are some schemes where the application must be submitted if the person moves to another state, but this will not happen. Social security As they suit the beneficiaries, the payments continue.