The 2025 COLA increase will enhance Social Security benefits (retirement and SSDI), as well as SSI benefits, by approximately 2.5%. However, the maximum Social Security benefits for workers who file for retirement at the Full Retirement Age have increased significantly.
The maximum Social Security benefits at FRA are $3,822 in 2024. However, individuals who qualify for the maximum payout in 2025 will receive more than 2.5%.
2025 COLA Introduces New Maximum Social Security Benefits at FRA
According to the most recent COLA Fact Sheet for 2025, the new maximum monthly payment for retirees filing at full retirement age will be $4,018. The current maximum amount at FRA is $3,822, therefore there will be a $196 rise.
The increase from $3,822 to $4,018 is a whopping 5.13%. As you can see, people who qualify for the most benefits can receive a larger boost.
Those who postpone filing for Social Security can benefit from delayed credits. This means they will receive an additional 24% if they submit at Full Retirement Age. Furthermore, if you file at the age of 70, you can receive up to $5,108.
How to Reach $4,018 in 2025 Following the COLA Increase
Keep in mind that to earn the maximum Social Security income with the COLA raise, you must meet the Agency’s requirements. For example, if you work but do not pay Social Security taxes, you will be ineligible for certain retirement benefits.
The amount of years you work is also important. Even if you can obtain a little retirement payout at 62 if you have only worked for ten years and have 40 work credits, you will need many more years to earn $4,018. The age is also important. So, if you do not file with the FRA, you will not be eligible.
High-income individuals have a better probability of receiving a substantial Social Security payout in the United States. To summarize, you must
- File at FRA
- Work in employment that pays enough Social Security taxes to contribute and receive benefits for at least 35 years.
- Work for 35 years or more.
