The Full Retirement Age (FRA) is one of the topics that the Social Security Administration will soon update again. In fact, it has steadily increased until it reaches 67 for those born in 1960 or later.
For example, if you were born in 1959, your Full Retirement Age is 66 years and 10 months. If you were born in 1958, your age is 66 years and 8 months.
Those born between May 2, 1958, and February 28, 1959, will reach full retirement age in 2025. FRA refers to the point at which you can receive 100% of your benefits, with no reductions and no delayed credits.
Social Security announces new taxable maximum
The Administration will also raise the current taxable maximum from $168,600 to $176,100. If you earn a lot of money, you may have to pay more in taxes.
For your information, the taxable maximum is the amount at which you stop paying Social Security taxes even if you exceed the limit. Thus, only earnings below the new taxable maximum will be taxed.
To be eligible for benefits, you will still need 40 work credits at age 62, but you will need more earnings to earn one work credit. The price will be $1,810, up from $1,730. To get 4 per year, you must have earned at least $7,240.
Social Security announces new Social Security earnings test
If you worked and received Social Security benefits prior to the FRA, you will face new limitations. For example, the new annual amount will be $23,400. Moving on to the next topic, there is good news: SSA taxes will remain unchanged. You will continue to pay 6.2%, just like your employer.
In most cases, beginning January 6, 2025, you will need to schedule an appointment to visit Social Security offices for various services. Another significant change affecting Social Security will be Medicare premiums.
In fact, standard premiums will increase to $185 by 2025. The current amount is $174 in 2024. As a result, if you want it, you will need to pay a little more than $10 extra.
Finally, there will be a 2.5% COLA increase for Social Security and SSI benefits. This will cost about $49 on average for Social Security recipients and $38 for SSDI beneficiaries.
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