Retirees receive the maximum pension at full retirement age through a pension benefit. With the 2025 COLA increase, many retirees are wondering about their Social Security retirement payments starting in January 2025. The article covers the 2025 Social Security retirement payment and other changes.
Based on the 2.5% COLA increase for 2025, retirees eligible for Social Security benefits will receive a maximum monthly payment of $4,018 at full retirement age, up from $3,822 in 2024.
Social Security payment of $4,018
The Social Security Administration announced a 2.5% COLA, increasing Social Security benefit payments for next year. The adjustment is made with inflation in mind to ensure that recipients can cover their expenses with the rising cost of living, especially seniors who depend on Social Security benefits.
Along with pensions, recipients also unlock various benefits for family, spouses and dependent children. A Social Security pension is a payment you get back because Social Security funds come from the payroll taxes you pay while you work. The average social security that all retirees will receive is $1,976 per month.
Who receives Social Security benefits?
U.S. citizens who meet the following conditions can receive full retirement age through Social Security:
- You worked, paid payroll taxes and earned at least 40 points from 10 years of work. If you stopped workingMr before 40 credits, your payment will be reduced.
- For people who reached the full pension age of 66, which is between 1943 and 1954, it increases if you were born between 1955 and 1960 to 67.
The maximum payment of $4,018 for 2025 is for people who have reached full retirement age, however, if you are 62 or older, you can also apply for a pension based on your earned credits and receive a payment lower than the maximum amount.
Children can claim the right to a monthly allowance based on the following criteria:
- Your child must be a dependent on your tax returns and must be under 18 years of age
- If he attends regular high school and is 18 or 19 years old,
- Your child has a disability or serious medical condition at any timeMre
Factors affecting the amount of your social security pension
The pension payment depends on various factors which can reduce or increase your payment. Here are the factors that affect your Social Security retirement payment:
- Your retirement plan: If you file for early retirement at age 62, your Social Security payment may be different or reduced from the full retirement age payment you may have received at full retirement age.
- Your Medicare Plan: If you signed up for a Medicare Part A and Social Security Part B health insurance plan, the plan premium will be deducted from your Social Security benefits.
- Keep working: If you keep working between ages 66 and 67 until age 70, you increase your future retirement benefits as you earn more credits. The administration adds 8% to your pension when you defer Social Security benefits.
- Continuing to work while receiving Social Security: If you continue to work and receive a pension, your payment may be reduced if your income falls under a tax bracket when your income exceeds $25,000 a year (single) or $32,000 (joint).
- Current or ex-spouse works: If your spouse or ex-spouse works, you can get extra money if they too reach retirement age. You can receive family benefits if they have died or their pension.
When will you receive $4,018 in Social Security benefits?
Social Security benefits based on the 2025 COLA increase will take effect in January 2025, so recipients can expect their increased payments in January 2025. The SSA pays monthly Social Security benefits on the second, third, and fourth Wednesday of the month based on their DOB .
Social security beneficiaries can determine their payment date based on the following payment rules:
- Pensioners with a date of birth from the 1st to the 10th of the month will be paid on the 2nd Wednesday.
- Pensioners with a date of birth from the 11th to the 20th of the month will receive their payment on the third Wednesday.
- Pensioners with a date of birth from the 21st to the 31st of the month will receive the payment on the 4th Wednesday.
People who are Social Security recipients before May 1997 or are eligible for Supplemental Security Income receive a payment every 3rd day of the month. However, if the payday falls on a public holiday or weekend, recipients can expect to be paid early on the business day before the payday.
How to apply for a social security pension?
Retirees who want to receive Social Security benefits must make sure at what age they want to apply for benefits, as this could reduce their payout. Once you are certain of the retirement age at which you want to apply for Social Security benefits, you can follow any of the following methods to complete the application process:
- Online: On the official website of the Social Security Administration, you can effectively apply for social security online.
- Offline: You can make an appointment at your local SSA office to apply for benefits by calling 1 800 772 1213 and submitting a Social Security application form with supporting documents, such as a Social Security number, mailing address, etc.
After you submit your Social Security application, you may receive benefits after a month (if approved) because it takes some time for the authority to review your application. Therefore, the Administration advises citizens to apply at least four months before the expected receipt of compensation.
