Most of Us Need Social Security at Some Point
Social Security is a lifeline for millions of Americans, but it’s no secret the system is under pressure. Lawmakers and experts have been tossing around ideas to help keep it strong for future generations. Some of these changes could mean more stability, while others might affect how much money people actually take home. Here’s what experts think might change.
Tax Adjustments for Higher Earners
Currently, Social Security taxes only hit wages up to $168,600. Lawmakers could raise that cap - or even eliminate it entirely - so top earners pay more. This would probably be celebrated by lower-income Americans, who resent that the richest seem to pay the least.
Cost-Of-Living Adjustments (COLA) Changes
Social Security boosts benefits each year to keep up with inflation. In 2025, that increase is 2.5%, or about $48 per month for the average retiree. Future changes could use a slower-growing inflation measure, like chained CPI. Experts think it’s definitely a possibility in the future, so maybe get in touch with a financial advisor?
Changes to Filing Strategies and Other Benefits
In the near future, Social Security could alter spousal benefits, ex-spouse benefits, child benefits, and the like. Strategies like “filing and suspending”, where you voluntarily suspend benefit payments, may disappear. These moves would target various loopholes, so retirees who count on certain filing tricks could see changes. It’s all part of efforts to modernize the system and keep it financially stable for the future.
Higher Full Retirement Age
Right now, if you were born in 1960 or later, your full retirement age (FRA) is 67. But there are talks of raising it to 68 - or even 70 - gradually. You could still claim benefits as early as 62, but your monthly check would shrink more than it does today. Be prepared for the fact that this could happen sooner than you think.
Changes to the Benefit Formula
Your Social Security check is calculated using your lifetime earnings and your retirement age. Lawmakers might adjust the formula so high earners get a smaller benefit while low-income retirees keep theirs - or maybe even get more. Many would approve of this fairer system.
