2025 Brings Mixed Changes to Social Security and Medicare for Retirees

Medicare Part B premiums will increase to $185 in 2025, up from $174.70 in 2024, alongside a rise in the annual deductible to $257. This increase will offset the 2.5% cost-of-living adjustment (COLA) in Social Security benefits, reducing the net benefit for many retirees. The impact will vary based on individual benefit amounts, with lower-income beneficiaries feeling the squeeze more acutely. However, 'hold harmless' rules will protect those with very low benefits from the full premium increase.