HPP: Retirement benefit payments for January 2025 will start to be made this week, the Social Security Administration (SSA) revealed in the last few hours. In total, there are three payments, although they will be disbursed on three separate occasions rather than all at once.
As is customary, Social Security will pay out on the second, third, and fourth Wednesdays of each month. The beneficiaries are categorized based on the date of their birth. Together, let’s examine the anticipated distribution dates.
Within a few hours, a Social Security payment is sent
They will be grouped according to their dates of birth, and the first payment will be issued on January 8; a second payment for another group will be sent on January 15; and a third payment will be sent on January 22.
Payments will be made on Wednesday, January 8, to individuals born between the first and tenth of each month, and on the third Wednesday, January 15, to those born between the eleventh and the twentieth. Lastly, on the fourth Wednesday, January 22, recipients who were born between the 21st and the 31st will pick up their checks.
Each situation is unique, and the sums to be disbursed among the millions of beneficiaries are subject to change. Each person’s retirement age determines the maximum amount of Social Security payments in 2025.
You should be aware of changes to the Social Security system.
The maximum Social Security payout for individuals who reach full retirement age is $4,018 per month. Earnings during the job time and the number of years worked are two of the many elements that go into determining this amount.
A person can start receiving their Social Security benefit at full retirement age, which varies depending on their year of birth, without having their amount deducted for receiving it too early.
Social Security benefits can only be received up to $2,831 per month by those who choose to retire at age 62, the minimum age at which benefits can be claimed. The profit they would get from waiting until FRA is far greater than this sum.
An “anticipation adjustment” is the reason for the decrease in the sum.
Beneficiaries who opt to start receiving their payments before they reach full retirement age will typically have a percentage reduction in their benefits, which is determined by the number of months prior to the start date.
For instance, choosing to retire at age 62 may result in a payout that is around 30% less than what they would earn at full age.
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However, those who decide to wait until they are 70 years old to begin receiving benefits might earn up to $5,108 each month.
The “delayed retirement credits,” which enable beneficiaries to double their monthly payment for each extra month they decide to postpone reaching full retirement age, are reflected in this sum.
Those who can afford to wait will earn much more because these credits add up and raise the benefit amount once the person starts receiving it.
In addition, starting in January, all Social Security recipients will see a 2.5% cost-of-living adjustment (COLA) on their benefits checks.
Other significant adjustments include raising the earnings threshold for employees under full retirement age to $23,400 and raising the Social Security tax wage ceiling to $176,100. In 2025, $1,810 in wage or self-employment income will be needed to receive a credit.