Summary
New Social Security rules in the United States are being implemented, affecting benefit amounts and retirement ages. Changes include a cost-of-living adjustment (COLA) that increases benefits by 2.8% and new income limits impacting benefit eligibility. These updates are intended to address inflation and benefit planning for over 70 million Americans.
Key Facts
- Social Security benefits increase by 2.8% due to a cost-of-living adjustment (COLA).
- The average monthly benefit rises from $2,015 to $2,071.
- The maximum monthly benefit for high earners increases to $5,251.
- Full retirement age is set at 66 for those born between 1943 and 1954, and 67 for those born in 1960 or later.
- An earnings test withholds $1 for every $2 or $3 earned above set limits for workers under or at full retirement age, respectively.
- Disability income limits are adjusted to $2,830 for blind beneficiaries and $1,690 for non-blind beneficiaries.
- Protections like the "hold harmless" rule exist for certain beneficiaries to ensure benefits do not decrease due to Medicare premiums.
