Social Security, Medicare benefit and premium changes for 2025
December 2, 2024
By Terry Kane
Retirement Planning Consultant
Changes to Social Security and Medicare benefits and premium calculations for 2025 have been announced. Here is a review:
Social Security
- Social Security recipients will see a 2.5% hike in their benefits in 2025 – a decrease from the 3.2% bump in 2024.
- Individuals who take their benefit before full retirement age (FRA) by the end of 2025 can make up to $23,400 in earned income before they lose any benefits. The year a person reaches the full retirement age, he or she can make up to $61,160 before they reach their FRA without any withholdings. There is no earnings cap once a beneficiary reaches their full retirement age.
- The Social Security wage base will increase to $176,100 in 2025, a $7,500 increase over the 2024 cap.
- The amount needed to qualify for coverage will rise to $1,810 per quarter in 2023. So, earning $7,240 during 2025 will net the full four quarters of coverage. You need 40 quarters of coverage to qualify for Social Security retirement benefits.
Medicare
For most, the 2025 monthly Medicare Part B premiums will be $185. That’s an increase of $10.30 over 2024’s rate.
Upper-income seniors also will pay more for Parts B and D coverage in 2025 if their modified adjusted gross income for 2023 exceeded $212,000 for joint filers or $106,000 for single people. (Modified adjusted gross income (MAGI) is AGI plus any tax-exempt interest.) For Part B, they pay the $185 basic monthly premium plus an Income Related Monthly Adjustment Amount (IRMAA). They also will owe a surcharge (IRMAA) on their monthly Part D premiums, which they pay for coverage of prescription drugs.
For questions regarding Social Security and Medicare, call 888-556-0123.
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