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.

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

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 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.

Last month, the Social Security Administration announced that beneficiaries will receive a 2.5% cost-of-living adjustment (COLA) in 2025. In fact, a recent survey conducted by The Motley Fool found that 54% of retired workers believe the 2025 COLA is insufficient.