6 Big Shakeups Coming to Social Security in 2025

COLA Adjustments – In 2025, Social Security recipients can expect a significant change in the cost-of-living adjustment (COLA), potentially higher due to inflationary pressures.

Higher Tax Cap – There are discussions about raising or eliminating the income cap on Social Security taxes, which would require higher earners to contribute more to the program.

Retirement Age Changes – Some lawmakers are proposing gradual increases in the full retirement age, which could impact when future retirees can begin receiving full benefits.

Revised Benefit Formula – Adjustments to the benefit formula are being considered to ensure that Social Security remains sustainable and equitable for future generations.

Expanded Benefits for Caregivers – Proposals include expanding benefits for individuals who take time off work to care for children or elderly relatives, helping them build up credits for Social Security.

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Means Testing – Some experts suggest implementing means testing for Social Security benefits, potentially reducing payouts for wealthier beneficiaries to preserve funds for lower-income individuals.

Increased Funding – Plans to boost funding for Social Security include raising payroll taxes or exploring new sources of revenue to avoid future cuts to benefits.

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