A significant announcement regarding the Cost of living Adjustment (COLA) by the U.S government and Social Security Administration has been made. The social security payment will see a hike. Cost of living adjustment is the increase in the social security payment to help the beneficiaries deal with the rising living costs. COLA has been increased by 2.5%. The alterations have been done in accordance with the Consumer Price Index for Wage Earners and Urban Employees (CPI-W).
WHAT IS COLA 2025 ?
The maximum social security is the amount that a retired person receives from Social Security. The factor that most affects the amount of social security a person receives is age. In 2025 the maximum social security will vary with the varying age. If a person wishes to retire at 70 years then he or she will be eligible to get the maximum social security that is $5,180. On the other hand if a person wishes to take full retirement at the age of 66 years and 10 months then he or she is entitled to receive $4,018.
HOW AGE OF RETIREMENT AFFECTS THE MAXIMUM SOCIAL SECURITY
If a person delays the retirement age by 3 years that is from 66 years 10 months to 70 years then that person sees a 25% hike in the maximum social security that is $4,018 to $5,180. The main motto behind this is to keep people in the workforce till they are able to.
CONCLUSION
People need to consider maximum social security and start making smart financial decisions before their retirement age so that they will be able to achieve the maximum benefits from maximum social security. This is one of the smartest retirement income strategies for most Americans. People need to stay updated about social security so that they can walk towards a better future.
