Social Security beneficiaries will receive a 2.5% COLA

In 2025, Social Security will see several changes, including a 2.5% cost-of-living adjustment (COLA) for all beneficiaries. This annual adjustment helps retirees keep up with inflation. Additionally, 3.2 million retirees will benefit from the repeal of the Windfall Elimination Provision and the Government Pension Offset, which previously reduced benefits for certain workers. These changes will result in increased payments for affected retirees. The income cap for Social Security taxation will rise to $176,100, and the earnings threshold for those claiming benefits early will increase to $23,400. Medicare Part B premiums will also rise, impacting monthly checks for retirees.