Mixed News for High Earners in 2025 Social Security Changes

The Social Security Administration has announced a 2.5% cost-of-living adjustment (COLA) for 2025, increasing benefits by about $50 per month for the average retiree. Additionally, the maximum taxable earnings limit will rise from $168,600 to $176,100, impacting higher earners who will face taxes on more income. While this may increase tax bills, it also means potentially larger future benefits, with the maximum monthly payment increasing to $5,108. Strategies like delaying benefits and working longer can also help boost Social Security payments.