Through an official statement effective January 1, 2025, the SSA, U.S. Social Security Administration, has announced that there will be significant changes for retired-worker beneficiaries, veterans (VA) and people with disabilities. The reason behind these changes lies in the changing cost of living impact the country has in 2024, due to rampant inflation that has kept a steady pace. Therefore, the increase in the cost of living will be accompanied by changes in the monthly premiums received by certain groups beginning in 2025.
Retirement changes: Social Security confirms significant impact
While this is good news for retirees, veterans and people with disabilities, Social Security has announced a significant bonus of a 2.5% increase in 2024 to combat inflation, which is estimated to be lower in 2025. With this measure, they want to bring stability to those who receive monthly payments, also adjusting the calculation of economic data compared to the current year, which is coming to an end. The 2025 calendar is about to begin, and with this increase, other changes are confirmed that will affect both those who already receive payments and those who plan to join the system.
For example, the retirement age could soon be raised to 68 or 70, whereas it is currently 66 in most cases. The justification for this change is that life expectancy has increased in recent years, making the system more sustainable and prosperous. However, this increase in the retirement age will not benefit many, although the increase in payments for those who have already finished their careers will. As the cost of living rises, so will retirement benefits and benefits for veterans and people with disabilities.
Pay attention to what’s coming from Social Security
It’s clear that most of the changes are still being evaluated by the SSA, and President Donald Trump will emphasize Americans’ interest in gradually improving the cost of living to bring it in line with the nation’s median income. The best way to take advantage of this information is to analyze it and compare it to your current income. You will then be able to make a rough estimate of the adjustment that could occur in the near future. If you have a financial advisor, he or she will be able to help you greatly with their knowledge.
Keep in mind, however, that Social Security always tries to help people, especially those with the least resources. Therefore, if your income is low, the SSA will protect you in situations where you are unable to meet the government’s requirements.
