The Social Security Administration (SSA) has announced a 2.5% Cost-of-Living Adjustment (COLA) for March 2025. This increase will raise the average monthly benefit to around $1,976. To qualify for Social Security payments in March 2025, you must have at least 40 work credits and meet the age requirement.
The minimum age to start receiving benefits is 62, but claiming early reduces your payments. Payments will be distributed based on your birth date. If you were born from the 1st to the 10th, your payment will be made on March 12.
Those born from the 11th to the 20th will receive their payment on March 19.
Cola adjustment for 2025 benefits
For those born from the 21st to the 31st, the payment date is March 26.
It’s important to note that Social Security benefits may be taxed if your total income exceeds certain thresholds. For single filers, 50% of benefits are taxed if income exceeds $25,000 and 85% if income exceeds $34,000. The thresholds for married couples filing jointly are $32,000 and $44,000, respectively.
With concerns about Social Security trust funds running low, experts predict potential changes in the future. These may include raising the full retirement age, increasing payroll taxes, and adjusting COLA formulas. To make the most of your Social Security benefits, avoid common mistakes such as claiming benefits too early, ignoring spousal benefits, failing to plan for taxes, and not checking your earnings record.
Stay informed and plan wisely to ensure financial stability in your retirement years.
