As a 2.5% cost-of-living adjustment goes into effect in 2025, millions of beneficiaries will see bigger monthly checks.
But while those maximum benefits will see a $196 monthly increase, retirement benefits will go up by about $50 per month on average, according to the agency. Notably, that limit applies only to wages that are subject to federal payroll taxes. If a wealthy person has other sources of income, for example from investments that do not require payroll tax contributions, that will not affect the size of their Social Security benefits, said Jim Blair, vice president of Premier Social Security Consulting and a former Social Security administrator.
However, because everyone's circumstances are different, it may not always make sense to wait until the highest possible claiming age, Blair said.