The Full Retirement Age (FRA) is one of the things that the Social Security Administration will soon update once more. As a matter of fact, it has been gradually increasing 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 and 10 months. However, if you were born in 1958 it is 66 and 8 months.
In 2025, those born between May 2, 1958, through February 28 1959 will reach Full Retirement Age. FRA refers to the moment when you can receive 100% of your benefits, no reductions, but no delayed credits either.
Social Security announces new taxable maximum
The Administration will also increase the current taxable maximum ($168,600) to $176,100. That means you may have to pay more taxes if you have such high earnings.
For your information, the taxable maximum is the amount when you stop paying taxes to SSA even if you exceed that limit. So, only earnings below this new taxable maximum will be taxed.
To qualify for benefits, you will still need 40 work credits at 62 but you will need more earnings to get 1 work credit. It will be $1,810, up from $1,730. To get 4 per year you will need to have earned at least $7,240.
Social Security announces new Social Security earnings test
If you work and get Social Security benefits before FRA, there are new limits too. For instance, the new amount will be $23,400 per year. Moving on to the next topic, there is good news because SSA taxes will remain the same. You will still have to pay 6.2%, just like your employer.
In most cases, from January 6, 2025, you will need to make an appointment to visit Social Security offices for different services. Another important change taking place and affecting Social Security will be Medicare premiums.
As a matter of fact, the standard premiums will go up to $185 in 2025. The current amount is $174 in 2024. Thus, you will need a little more than 10 dollars extra if you want to have it. Last, but not least, there will be a 2.5% COLA increase for Social Security benefit and SSI payments. That will be about $49 on average for Social Security and $38 for SSDI recipients.