Social Security Retirement & Disability COLA 2025

[SC Maintenance]

For Medicare I think you're right but for Social Security I don't believe so since for 2025, the Social Security tax limit is $176,100. You don’t have to pay the Social Security payroll tax on the amount that exceeds that limit. Of course you could argue a big chunk of 176k is "high earners" but as far as I know there is no higher tax rate like Medicare has on higher earners.

Its not the tax side, its the payout side. SS pay out based on income is much, much less as percentage of high income earners due to so called "bend points".

Social security simplified using current rates. Currently - you and your employer pay 6.2% - up to 12.4% total - which is capped at 176,100 - or $14,675 per month.


The bend points based on AIME:
90% up to $1,226
32% from $1225 to $7,391,
15% from $7,391 to $14675 - after is capped.

So doing the math, someone who's 35 year AIME was $1226 per month, '
Monthly benefit $1103 / month - or 90% of their monthly earnings as a worker. They and their employer would have paid 12.6% of 1226 = $154 to get their $1103.

Someone that paid in the max for 35 years of $14675
Monthly benefit = $4018 - or 27% of their monthly earnings as a worker.
They and their employer would have paid in $1819.70 per month to get that amount

The system has always been set up for the highly paid worker to pay for the lower paid ones.

 

[alarmguy]

Let me clarify more dates.

1. SSI COLA increases will be seen on December 31, 2025.
2. SS/SSDI increases will be seen on January 2, 2026 If you received Social Security before May 1997 or if receiving both Social Security & SSI. Also, in some states pay SS/SSDI on the 3rd if you are in a lower income bracket.
3. SS/SSDI (3rd SSA Payout w/higher COLA) for birthday payout dates will indeed be started on January 14, 2026.

I get what you are saying now. I re-read your OP. (peace)
Part of the miscommunication is not specifying SSI but you are correct *LOL* Im not going back !

I was looking at the calendar knowing the 2nd, 3rd, 4th wed ... was Social Security... there was a little bit of Semantics as someone noted... most times the conversation is about Social Security ... vs SSI

Ps, I actually enjoyed the lively discussion - civil is nice. I guess I could have picked up on the "Disability" in your post ...

 

[fantastic]

You are wearing me out, which is rare! *LOL*
Last I will post on this (maybe)
You provided a calendar saying the first Social Security raise is paid on Dec 31.
If you study the link you provided you will see that. you are incorrect. This is the link you provided - https://www.ssa.gov/pubs/EN-05-10031-2025.pdf?ftag=MSFd61514f

This 2025 calender link clearly shows SSI payment will go out Dec 31, 2025. Which if you look at Dec will be 2 payments (One on the first & then the higher increased date of Dec 31st). I understand this is not the 2026 calender which was to show you that there will be an SSI payment on that date.
https://www.ssa.gov/pubs/EN-05-10031-2025.pdf?ftag=MSFd61514f

Social Security is paid on the 2nd, 3rd, and 4th Wed of the month. Again, shown in the calendar you provided.

See my last post on the pay dates.

The payment on the 31st is NOT a Social Security payment as we are discussing here. That is a Supplemental Income Payment for disadvantaged people. I provided the link explaining that in my previous post to you. Its also stated right on the Calendar you provided.

That's the misunderstanding, you clearly believe SSI is not part of Social Security Administration payments. You do understand that's why the SSI payments are clearly mentioned on the calendars b/c it is part of SSA payments.

The title clearly says Social Security Retirement & Disability. Did you know that SSA pays SSI Retired people too? Did you know that SSA pays SSI disabled people? Did you know SSA pays SSI children? Doesn't that sound like SSA payments? You may want to do some reading.

I also provided a link to you showing the first social security payment for 2026 is the 2nd Wed of Jan 2026

That is incorrect, You are confusing SSI as not part of SSA, with different qualification rules, that pay the same people. Guess what? SSI recipients get the 2.8% COLA increase as well.

 

[fantastic]

I get what you are saying now. I re-read your OP. (peace)
Part of the miscommunication is not specifying SSI but you are correct *LOL* Im not going back !

I was looking at the calendar knowing the 2nd, 3rd, 4th wed ... was Social Security... there was a little bit of Semantics as someone noted... most times the conversation is about Social Security ... vs SSI

Ps, I actually enjoyed the lively discussion - civil is nice. I guess I could have picked up on the "Disability" in your post ...

Hey, we're all learning something new.

But to be clear SS / SSDI / SSI payments are all administered by the Social Security Administration. I understand it can get confusing for many folks though.

 

[alarmguy]

Hey, we're all learning something new.

But to be clear SS / SSDI / SSI all of those payments are all administered by the Social Security Administration. I understand it can get confusing for many folks though.

Well yes and no. *LOL*
My conversation was about SS ... however your thread was about SSI so I was wrong. Though in our conversation some of the posts didnt clearly state SSI and I was talking about SS

 

[alarmguy]

@demarpaint
Costs are crazy up there. Goes with the territory I guess. Everything available in zip 11793 which was just a random Zip for the South Shore of Long Island. From the drop down "Drug Coverage" make sure to select "Includes Drug Plan" of course if interested in anything since you dont do it yourself simply ask the person you use to look into it. Some plans up there only have dental cleanings for example, stuff like that. Costs are insane up there but I guess we all know that!

https://www.medicare.gov/plan-compa...fips=36059&zip=11793&page=1&year=2026&lang=en

 

[4wd]

You know when I was working-I was happy to pay more taxes-it usually meant I was making that much more money.

Indeed - happy to be in my tax bracket …

 

[fantastic]

Well yes and no. *LOL*
My conversation was about SS ... however your thread was about SSI so I was wrong. Though in our conversation some of the posts didnt clearly state SSI and I was talking about SS

You're not entirely incorrect, since you did speak of the non-SSI payment dates, but I understand the confusion. For me this thread is about both programs & in my mind I know that "Social Security", in general, includes Supplemental Security Income payments as well along w/the other non-SSI recipients but I need to understand that many may not know that. Perhaps this will clarify that now or I'll try to remember to post SSI in the title as I think that is a great idea.

Here's some examples. Some Social Security recipients get payments from both programs. Let's say you only worked a few years in your life & paid very little Social Security taxes. If you retire at 62+ you may still get let say $200 from SSA insurance & if your resources are below certain amount or no other income you'd get a Supplemental Security Income payment of $794 a month to bring your full payment up to the federal minimum of $994 for 2026 ($200 SS+$794 SSI=$994).

If you never paid into Social Security tax you'd get all of that $994 from Supplemental Security Income. That is just a couple of simple examples but a real one. Again, all subject to COLA increases if there is one.

I appreciate the dialog.

 

[Pablo]

Indeed - happy to be in my tax bracket …

I don’t mind paying taxes, it’s the constant waste and stupidity that gets me. Down with the homeless industry.

 

[alarmguy]

You're not entirely incorrect, since you did speak of the non-SSI payment dates, but I understand the confusion. For me this thread is about both programs & in my mind I know that "Social Security", in general, includes Supplemental Security Income payments as well along w/the other non-SSI recipients but I need to understand that many may not know that. Perhaps this will clarify that now or I'll try to remember to post SSI in the title as I think that is a great idea.

Here's some examples. Some Social Security recipients get payments from both programs. Let's say you only worked a few years in your life & paid very little Social Security taxes. If you retire at 62+ you may still get let say $200 from SSA insurance & if your resources are below certain amount or no other income you'd get a Supplemental Security Income payment of $794 a month to bring your full payment up to the federal minimum of $994 for 2026 ($200 SS+$794 SSI=$994).

If you never paid into Social Security tax you'd get all of that $994 from Supplemental Security Income. That is just a couple of simple examples but a real one. Again, all subject to COLA increases if there is one.

I appreciate the dialog.

For the record, as I stated. I agree. Your post was about both and I can tell you are more knowledgeable than me on the subject. Which is why I thought we were talking just SS.

 

[alarmguy]

I don’t mind paying taxes, it’s the constant waste and stupidity that gets me. Down with the homeless industry.

It's getting worse but maybe we are reaching a point of change? I dont know, sad but I think the public is more dumbed down than ever, since ironically the digital information age. Media is what is controlling the population. I find it fascinating and almost glad I grew up when I did. For the future ... ? I dont know ...

 

[fantastic]

For the record, as I stated. I agree. Your post was about both and I can tell you are more knowledgeable than me on the subject. Which is why I thought we were talking just SS.

As you well know, Knowledge helps us make sound financial choices in our lives.

 

[alarmguy]

As you well know, Knowledge helps us make sound financial choices in our lives.

Absolutely!

 

[demarpaint]

My Medicare Advantage plan has some dental coverage but I pay separately for a MetLife dental plan. I need to determine if I really need the MetLife dental plan.

I looked into it a while back and decided to pass, it ran about $38/month, with quite a few limitations etc.

 

[demarpaint]

@demarpaint
Costs are crazy up there. Goes with the territory I guess. Everything available in zip 11793 which was just a random Zip for the South Shore of Long Island. From the drop down "Drug Coverage" make sure to select "Includes Drug Plan" of course if interested in anything since you dont do it yourself simply ask the person you use to look into it. Some plans up there only have dental cleanings for example, stuff like that. Costs are insane up there but I guess we all know that!

https://www.medicare.gov/plan-compa...fips=36059&zip=11793&page=1&year=2026&lang=en

I did quite a bit of looking this morning, I have quite a bit more looking into supplemental plans. I might self insure that out of pocket cost again, as it turns out if I stay in network my out of pocket is $9,250 a year. Better than $13,900 worst case I was factoring. All my doctors take the Aetna plan I picked for 2026.

 

[Rmay635703]

My complaint about dental insurance is almost no dentists where I live are "in network". They want to be paid as I leave the office. They will send in the form but the check then goes to me .

Example - root canal dentist charges $1900. The dental insurance says the in network cost should be $900 and they pay 50% so I get a check back for $450. So I actually pay $1450 out of pocket.

A dentist from church (not my dentist) told me you would be lucky to find a first year dentist in dental school to do a root canal for $900..

My mom ended up with a ppo plan that allows out of network but the catch is nobody locally is in network, sadly blue cross is no longer offering plans in her area and there was very little available at all this year that she was qualified for.

All the plans seem to cost a lot more while giving less.

 

[alarmguy]

I did quite a bit of looking this morning, I have quite a bit more looking into supplemental plans. I might self insure that out of pocket cost again, as it turns out if I stay in network my out of pocket is $9,250 a year. Better than $13,900 worst case I was factoring. All my doctors take the Aetna plan I picked for 2026.

I had an Aetna HMO in 2024 when I was first diagnosed with Prostate Cancer around Sept 2024. I used them the rest of the year. Never was a problem, never a question, they paid everything including the second opinion with three specialists up at Duke Cancer Center. Including the latest (only approved last couple years by the FDA) PSMA Pet scan. Plus many other specialists in the Wilmington Area right to the end of the year.
That was the company that also paid for my Apple Watch and two or three pickleball paddles and I still never used up the remaining $400 I could have spent *LOL* What I am saying is I have a very favorable opinion of them.

With that said, my plan was so costly to the company that they discontinued it for 2025 and in that case, and since I now knew I had cancer AND with our local health networks buying up each other I didnt want to take any chances by being in a network so I went to for the first time in my so far retired career a Medigap plan for this year 2025 which was Plan N ... for 2026 I am going back to advantage.

I want to stress in no way was I disagreeing with anything you are dealing with up there. Just throwing stuff out there if it helps any. God, I cant even imagine going back there anymore. It's insane the costs up there.

Yes I noticed that if you stay in network your out of pockets are capped at 9K
Even with employee health plans you have to stay in -network... it's just the out of pocket exposure is brutal to me.

 

[demarpaint]

I had an Aetna HMO in 2024 when I was first diagnosed with Prostate Cancer around Sept 2024. I used them the rest of the year. Never was a problem, never a question, they paid everything including the second opinion with three specialists up at Duke Cancer Center. Including the latest (only approved last couple years by the FDA) PSMA Pet scan. Plus many other specialists in the Wilmington Area right to the end of the year.
That was the company that also paid for my Apple Watch and two or three pickleball paddles and I still never used up the remaining $400 I could have spent *LOL* What I am saying is I have a very favorable opinion of them.

With that said, my plan was so costly to the company that they discontinued it for 2025 and in that case, and since I now knew I had cancer AND with our local health networks buying up each other I didnt want to take any chances by being in a network so I went to for the first time in my so far retired career a Medigap plan for this year 2025 which was Plan N ... for 2026 I am going back to advantage.

I want to stress in no way was I disagreeing with anything you are dealing with up there. Just throwing stuff out there if it helps any. God, I cant even imagine going back there anymore. It's insane the costs up there.

Yes I noticed that if you stay in network your out of pockets are capped at 9K
Even with employee health plans you have to stay in -network... it's just the out of pocket exposure is brutal to me.

I never said or felt you were disagreeing with me. You know the ins and outs better than I do, I'm learning them fast. The problem is in areas like the NY Metro area any comparisons to most of the US with lets say the exception of NJ, CT, CA and a handful of other states it's like comparing apples to hand grenades. In any event your links and commentary is helpful. I continue to pray for you as well!

 

[alarmguy]

I never said or felt you were disagreeing with me. You know the ins and outs better than I do, I'm learning them fast. The problem is in areas like the NY Metro area any comparisons to most of the US with lets say the exception of NJ, CT, CA and a handful of other states it's like comparing apples to hand grenades. In any event your links and commentary is helpful. I continue to pray for you as well!

I Agree!!
You do know why those problems in those states much of the Northeast and I think some West Coast? Because legislation mandated insurers to allow people to switch from Advantage Plans to Medigap without underwriting. This allows people to game the system. For most the country once you are in an Advantage plan you are for life, unless that particular plan gets cancelled, then it opens the door to the person to either chose another Advantage Plan OR go to a Medigap plan WITHOUT unwriting.

Mandating switching plans be allowed without underwriting has contributed to the costs up there. Instead of leaving the laws alone, you know what happens. (no politics) Someone always pays.

Here in my state, one insurer on their own, allows switching, they use it to promote business but they are not forced by law.

Again, I agree 100% with you, it really is impossible to compare those states with much the country. Not only that, but cost up there is through the roof and so to your credit I agree, its very possible HMOs are limited there because of those costs, where here, everyone takes them almost equally, Meaning if the health network is in the PPO network of any of the large insurers most all times the HMO is too. Except for the very smallest of insurers that you never heard of

 

[nomas]

My brain hurts ...