The United States Government offers the possibility of receiving retirement benefits through the Social Security Administration. The 2025 COLA helps retirees get extra money to cope with inflation and the soaring cost of living.
Retirement benefits will increase by 2.5% after the 2025 COLA announced by SSA last October 10. If you are about to file for retirement, or you are getting ready for it, you should know that you can file as early as 62. This will reduce your payment by about 30%. So, delaying retirement until you are 70 would be wise.
How to obtain the largest payment from Social Security after the 2025 COLA increase
Going back to retirement age, filing at 70 will provide you with delayed credits. So, you will receive a boost of about 24% if you file 3 years after your Full Retirement Age, that is, at 70. This extra money has nothing to do with COLA.
The list of requirements goes on. Do not forget that you work in jobs that pay payroll taxes to the Administration. So, only jobs covered by the Agency will be useful to get this large payment.
Apart from that, the number of years you work also matters. Some retirees can receive money from the Administration if they file at 62 and have earned 40 work credits, about 10 years of work. Working for 35 years or more is necessary.
Last requirement to get $5,108 after COLA from Social Security
Last but not least, you must have earned the contribution and benefit base for 35 years. This is also known as the taxable maximum. In fact, it is when you stop paying taxes if you reach this amount of earnings in one year.
This taxable maximum increases when inflation does. In this way, payment amounts can be updated. For example, the new taxable maximum after the COLA increase will be $176,100.
American workers may be eager to know the new Social Security payment amounts after the 2025 COLA boost. The largest check will be worth $5,108 if you file at 70, but here are other amounts:
- $4,018 if you file at Full Retirement Age
- $2,831 if you file at 62
