In the US, millions of people who get Social Security depend on it as their main source of income in retirement. Cost-of-living adjustments (COLA) have made big changes to the biggest payments that people who are eligible can get starting in 2025.
This increase is meant to help beneficiaries keep their purchasing power in the face of inflation, but some people will not be able to get the full amount.
To get the most out of your Social Security check, you need to carefully plan your finances and know how this benefit is calculated. Some of the things that matter are your work history, the amount of money you make, and when you decide to retire.
The maximums announced for 2025 are good, but few people are able to get them because they do not know how to get the most out of their benefit.
In 2025, there are key things you can do to get the most out of your Social Security.
So, it would be helpful to find out the exact numbers for the new maximum check after the COLA adjustment and contrast them with the numbers from 2024. This way, we can see for ourselves how these changes affect your money.
Maximize your Social Security check in 2025
To reach the maximum Social Security check in 2025, it’s essential to meet three key conditions:
- Delay your retirement until age 70. This is one of the most important factors, since for every year you delay collection past your full retirement age, you increase your benefit by about 8%.
- Work for at least 35 years. Social Security calculates your average benefit based on your highest 35 years of earnings. If you worked less time, the missing years will be counted as $0 earnings, reducing your average.
- Have a history of high wages. To get the maximum benefit, you must have contributed at the top of the earnings subject to Social Security during those 35 years. In 2024, the taxable earnings limit is $160,200, with a slight increase expected for 2025.
It is also important to think about taxes. Some states tax Social Security, but not all of them do. If you live in one of those states, it could make a big difference in your net income. It can make a big difference to plan with a lawyer.
Check your earnings history through your My Social Security account to make sure that all of your years of contributions are recorded correctly.
This is another helpful tip. Any mistakes in your history can change your final calculation, so fixing them quickly is important to get the most out of your check.
Maximum Social Security in 2025 after COLA
The cost-of-living adjustment (COLA) for 2025 will be 2.5%. This will make the maximum payments that people can get in different types of retirement much higher. The maximums for 2024 and 2025 are shown below in a table:
| Type of Retirement | Maximum in 2024 | Maximum in 2025 |
|---|---|---|
| Full retirement | $3,822 | $4,018 |
| Disability retirement | $3,822 | $4,018 |
| Delayed retirement (age 70) | $4,873 | $5,180 |
As you can see, people who wait to retire until age 70 get the most out of retirement. This is because the COLA is added to the adjusted base amount, which means that people who make the best decisions about their retirement will get bigger raises.
To get the most out of Social Security in 2025, you need to think ahead, figure out how much money you have, and make smart choices that will let you get the most.
These changes could make a big difference in your quality of life if you succeed in meeting the requirements.