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.

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

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

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.