In 2025, this limit will increase from $168,600 per year to $176,100 per year. That's an extra $7,500 per year that will be subject to Social Security tax, and at the current 12.4% tax rate (which is split between employers and employees), these workers can expect to pay an additional $930 per year in payroll taxes.

There's a reason retirees are often warned not to sign up for Social Security too early. If you claim benefits before reaching full retirement age, you reduce them for the rest of your life. And if you don't have a lot of savings to fall back on, that reduction could leave you cash-strapped throughout your retirement.

Gen Xers say they are worried they may not receive their benefits at retirement age if Social Security funds are depleted.

Last month, the Social Security Administration announced the cost-of-living adjustment for 2025. Beginning in January, beneficiaries will receive a 2.5% raise -- amounting to around $48 per month for the average retiree and roughly $39 per month for the average disabled worker.

With a little more than a month before the 2025 COLA kicks in, here's what you should know about the upcoming adjustment.

Last month, the Social Security Administration announced that beneficiaries will receive a 2.5% cost-of-living adjustment (COLA) in 2025. That revelation disappointed many Social Security recipients.

Millions of Americans will see changes to their benefits in the New Year. There will be an increase of 2.5 percent for retirees and those on disability benefits