In 2025, significant changes to Social Security and Medicare benefits are anticipated for retirees. President Biden is expected to sign a bill increasing Social Security benefits for specific pensioners, eliminating provisions like the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) that currently reduce benefits for government workers. All beneficiaries will receive a 2.5% cost-of-living adjustment, while Medicare Part B premiums will increase to $185 monthly. Additionally, a $2,000 cap on out-of-pocket Part D prescription drug costs will be implemented. The Social Security trust fund depletion dates are also approaching, which may necessitate reforms.
