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Major Social Security Changes Affecting 3 Groups of Older Americans: What You Need to Know

categories: income, money, personal finance retirement, senior citizens, social security

Multiple modifications to Social Security have been implemented this year, affecting approximately 68 million individuals who rely on Social Security benefits. These alterations include some positive developments for recipients—particularly beneficial for those potentially facing financial shortages. retirement savings .

The purpose of the cost-of-living adjustment (COLA) is to ensure that Social Security benefits align with inflation, allowing recipients to preserve their ability to buy goods and services even as expenses increase. The benefits have gone up by 2.5%. As of January, based on data from the Social Security Administration (SSA), which increases retirement benefits by approximately an average of roughly $50 each month .

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This rise is somewhat smaller than the previous one. present yearly inflation rate of 3% , which has continued cooling since reaching peak levels in 2022.

For instance, in 2024, the Cost of Living Adjustment (COLA) was established at 3.2%, whereas in 2023—amidst high inflation—it surged to an impressive 8.7%. Consequently, although this year's COLA is significantly less, it aligns with a decrease in inflation rates.

The highest possible benefit for individuals retiring at their full retirement age (FRA) has gone up as well, potentially leading to larger monthly payments. For the year 2024, this change means that maximum benefit was $3,822. This year, the maximum benefit amounts to $4,018—and for someone, it could go up to $5,108. waits until they reach the age of 70 to claim their benefits.

However, these are not the sole modifications. Below is crucial information regarding the alterations and the three key segments that will be affected.

1. U.S. citizens nearing retirement age

One major change for individuals approaching retirement is an extension of two months. FRA For those born in 1959, the Full Retirement Age (FRA) has gradually risen since 1983 after Congress raised it from 65 to 67.

This year, individuals who reach 66 years old will need to wait ten months before receiving their full benefits, making November 2025 the soonest eligibility date. You still have the option to apply for your benefits earlier though. as young as 62 years old , you'll face a lasting reduction in the sum of your monthly payment — potentially around 30%.

Next year, the ceiling for taxable wages will rise from $168,600 in 2024 to $176,100. Consequently, those with greater incomes will notice a larger portion of their salary being allocated towards Social Security taxes; however, this adjustment aims at bolstering Social Security funds, as forecasts predict potential shortfalls. partially depleted by 2037 unless changes are made.

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2. U.S. citizens receiving disability or veterans' benefits

Individuals in America facing disabilities or health issues that hinder their capacity to work might experience an increase in their Social Security Disability Insurance (SSDI) payments. This program is intended to assist those who are primarily incapable of working due to such challenges.

As long as your income doesn't exceed the "substantial gainful activity" limit, you can continue earning money and receiving SSDI benefits. This rule applies according to the guidelines. SSA .

By 2025, this limit will increase by $70 to $1,620 per month for the majority of recipients, whereas an individual who is legally blind and receives SSDI benefits can earn as much as $2,700 monthly.

Veterans can expect a boost in their VA disability compensation by 2.5% due to the Cost of Living Adjustment (COLA). The same raise at 2.5% will apply to surviving spouses who receive dependency and indemnity compensation benefits.

Additionally, there could be boosts in payment levels and expanded coverage for new areas. presumptive conditions , potentially enabling several veterans to become eligible for benefits they previously did not qualify for.

3. Americans who are employed while receiving their benefits

For senior citizens in the U.S. receiving Social Security benefits while still working—whether through part-time jobs or gigs to add extra income—the government sets a limit on earnings. If this threshold is exceeded, the SSA will reduce some of these benefits. The same rule applies to individuals below Full Retirement Age (FRA) who collect survivors' benefits and continue to work.

The positive development for individuals attaining their Full Retirement Age this year is that the earnings test limit It has risen to $62,160 in 2025 (previously at $59,520 last year). Once your earnings surpass this level, the Social Security Administration deducts $1 for each $3 earned. Should you be several years shy of Full Retirement Age, they will withhold $1 for every $2 over the limit of $23,400 (an increase from $22,320 in 2024).

Luckily, the earnings test limit doesn’t apply during the month when you attain your full retirement age. This implies that regardless of your income level, there will be no reduction in benefits.

A Millennial's Guide: Fun and Easy Side Hustles Netting $5,000+

categories: business, entertainment, gig economy, income, money

Steph Thompson is putting more effort into side gigs after finding success with them in helping her generate income during her studies.
She has finished surveys, examined shops through secret shopping assignments, and marketed digital goods.
She spoke with Business Insider about her most enjoyable experiences at work.

Many people are trapped in inflexible 9-to-5 positions . Others desire a more adaptable schedule and transition into freelancing. Steph Thompson, at 31 years old, enjoys blending both worlds. side hustles .

Thompson, residing in Australia, mentioned this. side gigs enabled her to be self-sufficient while she was enrolled in a one-year academic course.

She mentioned that during weeks with more availability, she could dedicate additional time to it, whereas when her schedule was packed, it wasn’t an issue since the side gigs would consistently be ready for her.

Between January 2024 and last month, she earned over $5,000 through various side gigs like taking surveys and getting involved in different projects. user-generated content , recommendations, and marketing digital goods. Thompson finished her course in November, and since then, she has been intensifying her part-time ventures. Numerous individuals maintain a primary employment alongside a secondary job, with certain part-timers focusing more seriously on their additional pursuits. Some of these part-time workers are stay-at-home parents hoping to earn some extra cash. Some individuals have left their jobs to concentrate on making additional income through side projects.

Thompson motivates individuals to seek out part-time work that aligns with both their passions and availability.

She stated, 'There will generally be something available for many individuals. You might need to search for it somewhat, but ultimately, you'll discover something that aligns with your character, matches your mind, and fits into your schedule.'

Here are some of the side projects Thompson has explored along with reasons why they could be appealing to others.

Assessing and examining goods and offerings

UserTesting, a platform claiming individuals can earn extra cash during their free time by assessing and giving feedback on various products and services, is among Thompson’s top picks. side hustles She earned more than $400 in the last twelve months through this platform.

Certain tasks might require providing input via video or audio recordings, whereas some could be simple surveys without needing such elements.

Karan Mavai, who serves as the vice president of product management at UserTesting, mentioned that "think-aloud tests" are the most favored type within their platform. He explained that participants express their thoughts verbally while they move through a digital interface, prototype, or app. According to Mavai, clients looking for insights receive a recording encompassing both the visual actions on-screen and the spoken comments provided during the test.

"Being on camera and interacting with individuals aligns well with who I am," Thompson stated regarding their work at UserTesting and involvement in market research. side hustles .

She is also fond of User Interviews, an avenue for sharing her opinions. This platform offers multiple methods to make money such as completing online surveys, joining focus groups, and participating in extended studies. Certain research projects necessitate the use of a webcam, whereas others might entail telephone conversations.

"Should you enjoy sharing your viewpoints on various topics, this could be the perfect side gig for you," Thompson stated.

She mentioned that the compensation can be quite generous; according to the platform, the typical payout exceeds $50 and is issued via gift cards. Thompson has earned some income through referring people to User Interviews and joining various studies. Her payouts have varied from about $10 for a 15-minute session up to around $50 for extended sessions. She noted that these chances often arise during standard working times, making this an ideal side hustle for those able to participate throughout the daytime.

Mystery shopping

Thompson indicated that mystery shopping is a method used for easy side gig To attempt this since you might discover chances via an application and swiftly commence a task. She earned six Australian dollars, roughly equivalent to four U.S. dollars, for one mission and AU$8 for another. These tasks entailed photographing the chocolate and confectionery sections of two separate shops to document their displays.

Thompson believes this additional job works well for those who frequently do their grocery shopping. She mentioned, "It’s a fantastic small addition to your daily routine without having to deviate much from your usual path to make some extra cash."

Digital products

Thompson has additionally made income through the sale of a meal planning template and a budget spreadsheet, both of which are digital products Over a period of seven months, she managed to earn approximatelyAUD$1,418from all her digital creations.

"What I created was initially meant for me, but then I thought, 'Actually, others might find value in this as well,' " she explained.

Ebooks , budget trackers, printable planners , and artwork can also be sold as digital goods. Thompson believes that having a sizable audience isn’t necessary when beginning to sell such items.

"I believe that following your interests will likely lead to better product development, as these creations stem from authentic passion," she stated.

Surveys

Thompson mentioned that although surveys can serve as a decent part-time job, she considers them dull. surveys While they aren't her top choices for side gigs, she has a fondness for two specific platforms: Prolific and the Australian platform Octopus Group.

Thompson mentioned that keeping an eye out for those that offer higher payouts generally makes it worthwhile to spend your time on these survey platforms.

Prolific’s website states that the lowest hourly wage for tasks starts at $8, though Prolific informed Business Insider that numerous researchers offer higher rates. According to Prolific, most studies typically last from five minutes up to thirty minutes.

Thompson thinks survey sites Would be perfect for someone looking to earn some additional income or who can't dedicate too much time to it.

She mentioned that it’s certainly not the highest-earning part-time job, but if you’re someone who can easily multitask between watching television and browsing your phone, then you’ll manage just fine.

Delivery

Although certain individuals might appreciate earning additional money from this activity, delivery jobs It could also involve reinvesting part of your earnings back into it. Thompson pointed out that for a delivery side gig, you’re probably accumulating higher expenses compared to other freelance choices since you have to account for fuel costs, vehicle upkeep, and additional expenditures.

One alternative for food delivery is through services like Uber Eats. Thompson believes that using Uber Eats could be enjoyable for those who like driving. She mentioned it can serve as a supplementary job that’s relatively simple to begin once you clear the background verification process. However, she feels it may not be as advantageous now compared to previous times.

She mentioned that she hasn’t been doing it much over the past one or two years since the compensation has noticeably dropped below what would justify the time and effort involved, particularly with alternative opportunities present.

If you liked this tale, make sure to follow Business Insider on MSN.

Should You Apply for Spousal Social Security Benefits? Know These 3 Key Points First

categories: income, personal finance retirement, social security, social services, social welfare

Social Security benefits form a crucial part of the majority of retirement strategies, yet spousal benefits aren't getting sufficient recognition. A lot of individuals aren't aware that they have the option to stake a claim on retirement benefits through their partner’s earning record, which could substantially benefit families who are no longer participating in the labor force. You should consider verifying your qualification for this plan at the Social Security The administration's website; keep these three crucial aspects in mind prior to submitting your application.

1. You might be eligible for up to half of your spouse's complete retirement benefit.

Spousal benefits may be substantial, with qualifying individuals able to claim up to half of their spouse's complete retirement benefit. The mean monthly Social Security benefit is $1,884 for individuals currently reaching their full retirement age (FRA), which means numerous retired household units might qualify for an extra $900 in monthly support. The amount designated as a spousal benefit reaches almost $2,000 each month for those who are qualified. maximum benefit With a complete retirement age set at 67, financial advisors commonly suggest substituting approximately 80% of your earnings from before retirement to sustain your current standard of living. This additional income can help bridge a significant gap for numerous households.

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In order to qualify for spousal benefits, you need to be at least 62 years of age and have been married for a minimum of one year. This rule extends even to former spouses as long as they haven’t gotten remarried. If an individual qualifies under certain conditions like having a disability or supporting a dependent child, this age condition might not apply. Additionally, claiming these spousal benefits isn't possible until your partner decides to start receiving their own Social Security retirement payments. This detail becomes particularly pertinent in situations where the main breadwinner intends to postpone both retiring and collecting Social Security income.

2. You can't combine spousal benefits.

Spousal benefits are not designed to significantly boost the Social Security earnings of individuals with substantial individual work records. Typically, the spousal benefit amount is decreased by whatever retirement benefits one could get independently. When applying for spousal support, you're also considered as having filed for your personal benefits at the same time, which stops anyone from using strategic timing to gain an advantage.

This implies that you cannot combine spousal benefits with your own Social Security earnings to receive dual payments. Additionally, you aren't allowed to start collecting spousal benefits at age 62 and subsequently switch to your own larger benefit amount when you reach full retirement age.

In simple terms, if you have substantial retirement income coming from Social Security, additional spousal benefits will likely be minimal.

3. The quantity you can obtain is influenced by your age.

Spousal benefits operate akin to retirement benefits in terms of their structure: they allow for early withdrawals prior to reaching full retirement age, albeit with reduced monthly payouts. For spousal benefits specifically, this decrease could be up to 35%, calculated according to the primary insurance amount tied to the spouse’s full retirement age. Should you reach 62 and your partner receive Social Security, opting to wait until you hit your personal full retirement age will result in a higher spousal benefit when claimed.

A significant distinction exists when comparing spousal versus standard benefits. With Social Security retirement benefits, they increase progressively up until the age of 70 after reaching full retirement age (FRA), allowing one to receive an amount greater than their primary insurance rate through their individual entitlement. However, this advantage does not apply to spousal benefits; consequently, there isn’t additional motivation for postponing income past FRA.

It’s crucial to consider how age impacts benefits, particularly when dealing with couples who have a significant age difference. The main breadwinner may choose to delay receiving benefits until age 70 to increase payments, yet the partner might receive reduced payouts if they start collecting before reaching 67 years old. Balancing the advantage of higher lifetime earnings versus larger monthly benefit amounts later becomes essential.

The $ 22,924 The Social Security benefit many seniors entirely miss out on.

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