Recently, the trustees of Social Security announced a piece of news that alarmed millions of beneficiaries across the country: funding for this federal program would run out by 2035. This date is one year later than the one that had been announced in 2023, when the “zero day” was predicted for 2034.

Those who have waved the red flag of this alert assure that additional funding is needed in a bipartisan joint work in Congress, as well as political will from the White House. Should you worry and increase your benefits or claim them early? Well, that depends on many circumstances and your personal financial situation, so you should consult with a retirement expert before making any hasty decisions.

The Social Security Administration to Increase Benefits Soon

For now, each year, the Social Security Administration will effectively and continuously apply the cost of living adjustment (COLA). The most recent was 3.2% for the year 2024, much less than the 8.7% that was given in 2023, when we were still coming out of the coronavirus pandemic.

The SSA applies the COLA adjustment in two stages: for beneficiaries of Supplemental Security Income (SSI) the benefit increases as of December 29, 2023, while for other Social Security beneficiaries such as retirees and those who receive SSDI (disability insurance) the increase will be reflected as of January 2025.

The Maximum Social Security Benefits by Category in 2024

The amount of money you receive per month, whatever the Social Security program that covers you, it is essential to know how much money you are going to receive because it will be the income that will accompany you for the rest of your life.

The age at which you retire defines everything: if it’s too early, it can cut your checks substantially, and if it’s late enough, you could rather increase the size of your monthly income significantly.

If you retire at the age of 62, the maximum you will be able to receive per month is $2,710, while if you wait for the full retirement age (FRA), which is between the ages of 65 and 67 for most, the benefit cap is $3,822 per month.

And here’s what we were saying before delaying the retirement age: if you wait until age 70, the maximum you can claim is $4,873 per month.

At What Age Can I Retire According to My Year of Birth?

The ARF is different for each individual according to their year of birth. In the United States, this limit has gradually increased since 1983 because people are living longer and generally healthier in old age now than before.

Here is a table with the FRA values according to the beneficiary’s year of birth:

• 1937 and before: FRA is 65 years old
• 1938: FRA is 65 years and 2 months
• 1939: FRA is 65 years and 4 months

Social Security COLA in 2025: How Much Will Your Benefits Increase?

The latest estimate of the cost of living adjustment (COLA) of Social Security for 2025 has been revised downwards, standing at 3%, according to updated calculations released on Wednesday. This reduction came after the publication of the government report that pointed to an inflation of 3.3% in May.

The COLA adjustment was softened due to the moderation of inflation after an increase observed at the beginning of the year. However, this adjustment may not be enough to cover the needs of the elderly in the face of the real increase in living costs, warned Mary Johnson, a retired analyst with the Senior Citizens League organization, which is dedicated to monitoring and calculating COLA estimates.

The consumer price index (CPI-W), which broadly measures the costs of goods and services, registered a 3.3% increase in May compared to the same month a year earlier, according to government data. This figure is lower than the 3.4% reported in April and also the 3.4% predicted by the FactSet consensus among economists.