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big changes are coming to Social Security in 2025 let's dive into what you need to know the Social Security Administration is projecting a cost of living adjustment or Cola of around 2.57% for 2025 this increase is tied to inflation which while cooling off still affects the prices of goods and services for the average beneficiary receiving $1,840 per month this translates to an extra $47 monthly but don't get too excited just yet Medicare Part B premiums could also see a rise now how is this Cola calculated it's all about the Consumer Price Index for urban wage earners and clerical workers experts analyze the inflation data from July August and September and compare it to the previous year's third quarter numbers the final Cola figure will be announced in October but there's a lot of misinformation out there some say delaying your retirement to a year with a higher projected Cola guarantees increased benefits that's not true the Social Security Administration clarifies that those turning 62 or older in a particular year are eligible for that Year's Cola even if they haven't filed for benefits yet so your monthly payment will reflect the cumulative Cola adjustments from the year you turned 62 irrespective of when you start claiming benefits besides Cola other factors influence your Social Security benefits your average lifetime earnings work history and the age you start claiming benefits all play a role plus your spouse's earnings can also impact your benefit amount while Cola aims to protect your purchasing power against inflation Medicare Part B premiums and taxes can affect your net benefit speaking of taxes around 40% of Social Security recipients pay income taxes on a portion of their benefits the income thresholds for these taxes are not adjusted for inflation meaning you might end up paying taxes on a larger portion of your benefits as Cola increases your income so what does this mean for you while it's good news that benefits are set to increase it's crucial to consider other factors like medicare premiums and taxes stay informed and plan accordingly that's all for now if you found this video helpful don't forget to like And subscribe for more updates thanks for watching