Wisconsin residents who rely on Social Security benefits can expect some key changes in 2025. From cost-of-living adjustments (COLA) to tax policies and Medicare updates, here’s what recipients should know to plan ahead.
1. Social Security COLA Increase for 2025
Each year, the Social Security Administration (SSA) adjusts benefits based on inflation. While the 2024 COLA was 3.2%, early projections suggest the 2025 increase may be smaller, depending on inflation trends. A lower COLA means benefits may not rise as much as recipients hoped, making it crucial to budget accordingly.
2. Changes to Social Security Taxes in Wisconsin
Wisconsin is one of the states that partially taxes Social Security benefits. However, recent discussions among lawmakers could lead to new tax relief for retirees in 2025. Currently, individuals earning below a certain threshold can avoid state taxes on benefits, but any changes will depend on legislative action.
3. Medicare Premium Adjustments
Many Social Security recipients in Wisconsin have Medicare Part B premiums deducted from their checks. While the 2024 Part B premium increased to $174.70, experts predict another rise in 2025 due to healthcare costs. This means some recipients may see a smaller net increase in their benefits.
4. Full Retirement Age Adjustments
For those born in 1960 or later, the full retirement age (FRA) is now 67. This means Wisconsin residents who turn 62 in 2025 will have to wait longer for full benefits if they don’t want to take a reduced payout.
5. Maximum Social Security Benefit Increases
The maximum monthly benefit for retirees at full retirement age is set to increase in 2025. In 2024, the maximum benefit was $3,822 per month—this amount is expected to rise slightly in 2025 due to wage growth.
Final Thoughts
Wisconsin Social Security recipients should prepare for modest benefit increases, potential tax changes, and rising Medicare costs in 2025. Staying informed and planning ahead will be key to managing finances in the year ahead.
For the latest updates, visit the Social Security Administration’s official website at ssa.gov.
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