The Social Security Administration (SSA) has announced that for 2025 the maximum earnings subject to Social Security tax will increase $7,500, from $168,600 to $176,100. This is referred to as the “wage base.” In addition, the SSA announced that Social Security and Supplemental Security Income (SSI) benefits will increase by 2.5%. These changes reflect cost-of-living adjustments based on inflation. On average, Social Security retirement benefits will increase by about $50 per month starting in Jan. 2025 for nearly 68 million recipients. Increased payments to nearly 7.5 million people receiving SSI will begin on Dec 31, 2024. (Note: Some people receive both Social Security benefits and SSI.)
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