The more than 68 million Americans who receive Social Security retirement benefits are set to receive a cost-of-living increase next year. The Social Security Administration (SSA) announced last week a 2.5% COLA boost for 2025. This is slightly lower than last year’s 3.2% increase but on par with current inflationary rates.
The increase will see the average monthly benefit check jump by roughly $50 from $1,927 to $1,976. Retirement-aged couples who both receive benefits will get an estimated average of $3,089 a month. While the increase offers little assistance to those relying primarily on Social Security for retirement income, it comes after the Fed’s recent interest rates drop and lower inflation rates. That said, consumers are still dealing with lingering high prices, and an unpredictable stock market.
The SSA also raised the maximum earnings subject to the Social Security tax. Starting in January, the taxable maximum will go from $160,200 to $168,600. This means higher earners will be paying more toward Social Security benefits.
For a full breakdown of the effect of the adjustments, check the fact sheet published by the SSA.
Social Security Marketing Opportunities
The SSA’s announcement allows financial professionals to prioritize Social Security when connecting with clients and prospects. Multiple variables are involved with Social Security (when to claim, whether to keep working, etc.). Those without a solid grasp of the program could easily miss out on strategies that will help maximize their benefit amounts.
Do you want to help your clients and prospects get the most out of their Social Security benefits? IAMS has a solution. Our exclusive Social Security Navigator program will help position you as a Social Security expert and gain recognition from clients and prospects.
The program includes:
- Training Materials
- Seminar Presentations
- Expert Social Security Resources
- Seminar Handouts
- Step-by-Step Seminar Guide
- Dedicated Seminar Success Assistant
- Benefit Calculator Software
Click below for a video overview of the program and details on how to get started.
