There are a number of changes coming to Social Security in 2025. The big one is that if you were born in 1960 or later, your full retirement age is now 67. The good news is that we've known this was coming for a while.
KTRH Money Man Pat Shinn says that this is one of the scheduled increases that was signed into law in 1983. He said, "Nobody complained about it back then because the people who were going to be affected by it were only 25 years old back at that time, or younger."
That's not the only adjustment coming to Social Security, though. Seniors can also expect to see their yearly cost-of-living adjustment. The bad news is that adjustment will be just 2.5%, which is smaller than 2024's 3.4% adjustment.
Shinn warned that despite Congress usually making their cost-of-living adjustments based on the Consumer Price Index, 2025's increase is still not expected to be enough to cover inflation for many seniors, who often rely on Social Security for up to 40% of their income.