The Social Security Administration just released this statement right here

announcing five major changes that they're going to be making to Social Security benefits

starting in the year 2025. Let's go through these changes together starting with point

number one, the cost of living adjustment. For your reference, the cost of

living adjustment is the amount that Social Security payments increase in order to make up for inflation

and it's calculated by using the year-over-year inflation rate for Q3.

Specifically, the government averages out the year-over-year changes for the months of July, August, and September and measures them against the previous year.

And so, looking at it historically in 2021, Social Security recipients got a 1.3% bump in payments.

In 2022, the increase was 5.9%.

In 2023, inflation was rampant, and so it was 8.9. In24, the

24 the increase was 3.2 percent and for this upcoming year for 2025 the increase will be 2.5 percent

meaning that starting on January 1st of next year, recipients of Social Security

will have their checks increased by 2.5%.

In terms of the dollar amount, this change will, quote,

amount to an average increase of $50 in monthly benefits

for retired workers and Social Security

beginning in January.

$50 more per month, which translates to about $600 more per year on average.

Then the second change that's coming down the pipe to the program is a change in the retirement earnings test.

This has to do with people who are still earning an income

while at the same time collecting social security benefits.

By doing it this way, their social security payments are reduced if their earnings exceed

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