Cost-of-Living Adjustment (COLA) In 2025: 2.5 percent
Number of Workers with Earnings Covered by Social Security: 183 million
Percentage of American Workers Covered by Social Security: 90%
Number of People Receiving Social Security:
Total OASDI Beneficiaries: 67 million
Retirees and their families: 53 million
Survivors of deceased workers: 6 million
Disabled workers and their families: 9 million
Estimated Average Monthly Benefit— 2025
Retired worker: $1,976
Aged couple, both receiving benefits: $3,089
Disabled worker: $1,580
Disabled worker, Spouse and one or more children: $2,826
Aged widow or widower: $1,832
Widowed parent with two children: $3,761
Maximum Social Security Benefit:
Worker Retiring in 2025 at Full Retirement Age (FRA) – $4,018/mo.
Worker Retiring in 2024 at age 62 with FRA at age 67 – $2,710/mo.
Worker Retiring in 2024 at Age 70 – $4,873/mo.
Retirement Earnings Test Exempt Amounts:
- Under full retirement age-
- 2024 – $22,320/yr. — $1,860/mo.
- 2025 – $23,400/yr. — $1,950/mo.
NOTE: One dollar in benefits will be withheld for every $2 in earnings above the limit.
- The year an individual reaches full retirement age-
- 2024 – $59,520/yr. — $4,960/mo.
- 2025 – $62,160/yr. — $5,180/mo.
NOTE: Applies only to earnings for months prior to attaining full retirement age. One dollar in benefits will be withheld for every $3 in earnings above the limit.
- Full retirement age and older, there is no exempt amount as benefits are not subject to deductions based on work activity at full retirement age and beyond
Social Security and Medicare Tax Rate
Tax rate paid by employee: 7.65% (6.2% – Social Security, 1.45% – Hospital Insurance)
Tax rate paid by employer: 7. 65% (6.2% – Social Security, 1.45% – Hospital Insurance)
Total tax rate paid by self-employed:15. 3% (12.4% – Social Security, 2.9% – Hospital Insurance)
NOTE: The 7.65% tax rate is the combined rate for Social Security and Medicare. The Social Security portion is 6.20% on earnings up to the applicable taxable maximum amount (see below). The Medicare portion (Hospital Insurance) is 1.45% on all earnings. The Hospital Insurance tax rate increased 0.9 percent for single filers with wages above $200,000 and joint filers with wages above $250,000 beginning January 2013.
Maximum Taxable Earnings Base
Social Security:
- 2024 – $168,600
- 2025 – $176,100
Hospital Insurance:
- No Limit
Earnings needed to credit a quarter of coverage (QC)
- 2024 – $1,730
- 2025 – $1,810
Maximum of 4 credited per year
Full Retirement Age Schedule — by Year of Birth:
1938 – 65/2 mos. 1942 – 65/10mos. 1957 – 66/6mos.
1939 – 65/4 mos. 1943-54 – 66 1958 – 66/8mos.
1940 – 65/6 mos. 1955 – 66/2mos. 1959 – 66/10mos.
1941 – 65/8 mos. 1956 – 66/4mos. 1960+ – 67
Anyone born in 1960 or later has a Full Retirement Age of 67.
Sources:
Social Security Trustees Report: https://www.ssa.gov/OACT/TR/2024/tr2024.pdf
Social Security Fact Sheets: https://www.ssa.gov/news/press/factsheets/colafacts2025.pdf