Dec 4, 2024 · The estimated average retirement benefit will increase by $49 a month, from $1,927 to $1,976, starting in January, according to the Social Security Administration (SSA). It’s the lowest COLA in four years, reflecting a return to pre-pandemic inflation trends .

Oct 10, 2018 · They take a bite from the full benefit if you are younger than full retirement age — you can lose up to 30 percent of your benefit by starting retirement benefits at 62, the earliest possible age. But Social Security adds to your payment for each month between full retirement age and 70 that you delay claiming benefits. Someone filing at age ...

Sep 12, 2024 · 5 Social Security Decisions That Can Be Costly. Social Security can make up a big portion of your retirement income. Maximizing your benefits starts with making the best choices for you, based on your age, marital status, work plans and more. Watch this free AARP webinar for expert guidance on avoiding Social Security pitfalls that could cost ...

Oct 10, 2018 · In 2025, if you collect benefits before full retirement age and continue to work, the Social Security Administration (SSA) will temporarily withhold $1 in benefits for every $2 you earn over $23,400. If you will reach FRA in 2025, the earnings limit goes up to $62,160 and $1 is deducted from your benefits for every $3 you earn over that.

Oct 10, 2018 · Now suppose you continue to lose two months of benefits a year until you reach full retirement age — that's 67 for people like you who were born in 1963. That's 10 months of withheld benefits. When you hit FRA, Social Security will reset your benefit as if you’d filed 50 months early rather than 60.

Sep 21, 2021 · After an 2.5 percent cost-of-living adjustment, the estimated average monthly retirement and SSDI benefits in January 2025 are $1,976 and $1,585, respectively, according to SSA data. If you have an online My Social Security account, you can check your projected retirement and disability benefit amounts.

Jan 24, 2025 · In 2023, income taxes on benefits added $50.7 billion to the Social Security trust funds, accounting for about 3.8 percent of Social Security’s revenue — the vast majority of which comes from payroll taxes levied separately on most U.S. workers’ earnings.

AARP's Social Security Resource Center presents our members with answers to questions on applying for retirement, spouse, survivor or disability benefits, the workings of the cost-of-living adjustment (COLA), and delayed retirement credits in an easy-to-understand manner.

Oct 10, 2018 · The $23,400 cap is in effect when you work and receive benefits in a year before the one in which you reach full retirement age, or FRA, which is 66 years and 8 months for people born in 1958, 66 and 10 months for people born in 1959 and 67 for people born in or after 1960. If you will reach FRA in 2025, the limit is higher ($62,160) and the ...

Oct 10, 2018 · In this case, Social Security considers you to have attained full retirement age on the last day of the month preceding the milestone date. For example, if you were born January 1, 1959, you attain your full retirement age of 66 and 10 months on October 31, 2025, and you would receive your first payment in November 2025.