Confused about 2025 SS benefit difference - $5,108 for new age 70 retirees vs. $4,994 for 2024 retirees?

The difference you're seeing is because of how SSA calculates initial benefits versus how they apply COLAs to existing benefits. When you start benefits in 2025, your Primary Insurance Amount (PIA) is calculated using the most recent wage indexing factors, which tend to increase year over year. Someone who started in 2024 had their initial benefit calculated with 2024 factors, and then just received the straight COLA for 2025. It's not that younger people get better COLAs - it's that your initial benefit calculation is based on current-year factors, while existing beneficiaries just get the standard COLA adjustment on their already-established benefit amount. This is completely normal and happens every year.

my mom ran into this same thing!!! she was so mad that her friend who retired a year later got more $$$. she called ss like 5 times and they kept giving her different answers. so frustrating!!!! the whole system is rigged i swear

This absolutely confused me too when I was researching SS benefits! The way I understand it (and I could be wrong), there are two different calculations happening: 1. For new retirees in 2025: They calculate your benefit from scratch using the 2025 wage base and indexing factors 2. For existing retirees: They just take your established benefit and add the COLA percentage What's weird is if you were born in the same year as someone who claimed last year, you might get more money by waiting until 2025 to file, even though you're both 70. The system doesn't make a lot of sense sometimes.

So does this mean if ur already collecting SS its gonna be less than someone who starts later even if u both waited till 70???

I researched this extensively when planning my own retirement. The maximum benefit amount increases each year because it's based on the maximum taxable earnings from previous years, which increase annually. Here's what's happening: 1. Someone who turned 70 and claimed in 2024 had their benefit calculated using pre-2024 wage bases and indexing factors, then received a 3.2% COLA for 2025. 2. Someone turning 70 in 2025 has their benefit calculated using more recent (higher) wage bases up through 2024 or 2025, resulting in the higher $5,108 figure. This is normal and happens every year. There's nothing unfair happening - just the regular calculation method. And no, there's no advantage to waiting beyond age 70 to apply.

My cousin works for SSA and she says they get this question all the time. It drives her nuts because their own training doesn't explain it very well! The different max benefit amounts are because of the wage indexing thing the others mentioned, not because of COLAs being different. Its just how the math works out.

Is anyone else having trouble even REACHING Social Security to ask these kinds of questions? I've been trying for weeks to get through to someone who actually understands these calculations. The phone lines are always jammed, I got disconnected twice after waiting over an hour, and my local office is booked solid for months!

To clarify a key point that's causing confusion: Once you reach age 70, there is NO BENEFIT to waiting longer to apply. Age 70 is the maximum age for delayed retirement credits (DRCs). If you're already 70 in 2025, you should apply now. Waiting until 2026 will not increase your benefit amount through DRCs. The only thing that could potentially increase your benefit by waiting would be if you're still working and replacing a lower-earning year in your calculation with a higher-earning 2025 year. The difference between someone who turned 70 and applied in 2024 versus 2025 is due to the wage indexing in the initial calculation, not because of some advantage to waiting past 70.

wait so if I'm turning 66 this year should I wait till 70? will I get more $$$ that way? or should I just take it now? i'm so confused by all this!!!!