Is Social Security Undergoing Major Changes in 2025?

by | Mar 13, 2024 | Spousal IRA | 18 comments

Is Social Security Undergoing Major Changes in 2025?




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Big Social Security Changes Coming in 2025

The year 2025 is set to bring about significant changes to the Social Security system in the United States. With a growing aging population and increasing pressure on the program’s finances, lawmakers are taking action to ensure its sustainability for future generations. Here are some of the key changes that will take effect in 2025:

1. Increase in full retirement age: One of the most notable changes coming in 2025 is the increase in the full retirement age. Currently set at 67 for those born in 1960 or later, the full retirement age will gradually increase to 68 for those born in 1960 and later. This means that workers will have to wait longer before they can receive their full Social Security benefits.

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2. Changes to benefit calculations: Another significant change coming in 2025 is the way Social Security benefits are calculated. The new law will adjust the formula used to calculate benefits, which could result in lower benefits for some retirees. This change is aimed at reducing the overall cost of the program and ensuring its long-term sustainability.

3. Higher payroll taxes: To help cover the rising costs of the Social Security program, workers and employers can expect to see an increase in payroll taxes in 2025. The exact amount of the increase has not yet been determined, but it is expected to be higher than the current rate of 6.2% for employees and employers.

4. Changes to spousal benefits: Spousal benefits play a significant role in the Social Security system, providing support for non-working or lower-earning spouses. In 2025, there will be changes to how spousal benefits are calculated, which could result in lower benefits for some spouses. It is important for couples to understand these changes and how they may impact their Social Security benefits.

5. Updated cost-of-living adjustments: Social Security benefits are adjusted annually based on changes in the cost of living. In 2025, the way these adjustments are calculated will change, which could result in smaller increases in benefits for retirees. This change is aimed at controlling the growth of Social Security costs and ensuring the program’s long-term sustainability.

Overall, the changes coming to the Social Security system in 2025 are aimed at ensuring its long-term sustainability and addressing the financial challenges facing the program. It is important for current and future retirees to stay informed about these changes and how they may impact their benefits. Planning for retirement and understanding the Social Security system can help individuals make informed decisions about their financial future.

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18 Comments

  1. @HeritageWealthPlanning

    Not the best audio but I didn’t want to do the video a third time . Sorry

  2. @prairiemark4084

    I think there is a tension between infatuation with work and infatuation with school. Some are fascinated with work and want everyone to go off to work as soon as they are out of high school. But, maybe then later, the workers are caught in a crappy old job and want to retire early. It could be those that go to trade school or college have a broader skill set that allows them to be flexible and move from job to job as the job market changes. I went to nine years of college and have held a variety of jobs. Farm labor, flour mill worker, retail store owner, pharmacist, conventional large scale grain farmer on rented land and finished up with being a large scale organic farming that shipped products to California and Italy. My income increased as my career advanced and interests moved from career to career. If I didn't have the academic background I could not have been as successful at organic farming or pharmacy for example. Or at least it would have been harder. Both pharmacy and organic farming require a background knowledge in biology, chemistry, toxicology and statistics for example. And common sense. And business knowledge too, I might add. The flexibility background knowledge provides can be useful in all kinds of enterprises. It ticks me off when people feel bound to a crappy old job. They made the decisions going into their working life that got them caught in the golden handcuffs that got them tied to a narrow range of job choices in the late career era. Sometimes the job choices that finance their desired standard of living are just one. They may only be able to make needed money in one field of work. I would propose a greater emphasis on job based training somewhat like what Germany has. My son had an engineering degree, but he learned most of his knowledge of surveying with on the job training. He finished up he career in his early 40s before he died. He was a major player in redesigning the roads in the Denali Park in Alaska. And he moved from a field job to an office job and project manager. My step-son immigrated from the Philippines when he was 18. He had finished high school and had two years of technical training in electronics after high school. He immigrated to the USA, joined the military reserves and works for a large box store chain as a robot repair man. He has worked his way up through four levels of robot engineers through company training. The one facility has 18 or 20 robot repairmen (repairpersons). The wages are high because John Deer employes 5,000 people in town and is short of robot repairpersons. After four years he is making $48/hr and is offered a management position at $60/hr. He is taking university courses in electronics engineering on the side and soon will have a broad skill set as a mechanical engineer. He will be marketable in a broad range of fields….computers systems, manufacturing, He owns a large house, two cars, and had his sweetheart move from the Philippines to marry him and they have their first child now. And he is only 29 years old. I am amazed at how my son and step-son progressed. It is flexibility that counts in todays world. And broad knowledge combined with specialized training mingled with ability to work hard and mingle freely with people of a variety of backgrounds that moves you up in todays world. Company based training is a key element of this work. And we are behind where we should be in this country regarding company based training. But never be a mile deep and a half inch wide in your skill set or you will get caught in a tough place with few options.

  3. @Rooster_Crows

    New bill to stop taxing social security

  4. @chrisferretti7020

    Do you really think that Bernie wrote that…he's not smart enough to stand downwind from a taco bell fart. Taking credit for someone else's work.

  5. @johneynern5615

    If the Government is going to cut ss benefits they need to start with the people who has NOT paid into the system!!!

  6. @royprovins7037

    This is what happens when you decide to retire and depend on the government for all your money (SS)
    Its a dumb idea. Sure take what you can get but don't depend on the government when you are 80

  7. @fredcarter8382

    The infatuation with 'school" is not an infatuation. It is a plan. They know with the current broken family situations the more non-thinking kids they can get signing up for useless degrees the more govt money the schools receive. Also the percentage of kids buying into the academic communist brain washing goes up if you shove more kids through the liberal college pipeline.

  8. @Mr._Rick

    Josh, I believe it should be eliminated. If you was able to raise your family on one income then retire on one income. For me it’s more of personal responsibility. You make the decisions and should have to live with the consequences.

  9. @lovethomassowell

    If high earner spouse delays filing for SS until 70, but dies at 69 before filing for SS, does the low earner spouse lose spousal benefits (assuming they had no SS of their own or it is much less than high earner spouse)?

  10. @edhettwer7920

    The honorable Bernie Sanders? Isn't that an oxymoron? The guy is a communist. He even took his honeymoon in Russia.

  11. @cutehumor

    I didn't see any proposals to reduce people's SS retiree benefits just the Survivors, spousal benefits, and tax increases on rich people. This maybe the only way to fix SS

  12. @brucesmith9144

    Begich is pronounced “BEGG-itch.” Senator Mark Begich’s brother, Dr Nick Begich, used to be a guest on a radio station and that’s how he said his name.

  13. @karenbenning2166

    I have never understood why spouses receive benefits if they did not work outside the home themselves. It seems to me that if a married person wants or can afford to have his/her spouse not work then if the spouse is also to receive Soc Sec benefits the worker needs to pay in extra to Soc Sec weekly to cover this benefit? Unless I am missing something the nonworking spouse is receiving a free benefit from Soc Sec? Which means that a married worker when he/she retires gets two benefits for his Soc Sec distribution in comparison to the one benefit that a worker who has never married gets. Maybe I am wrong about this benefit and a married worker with a nonworking spouse pays in extra to Soc Sec weekly while working?

  14. @paulmarino8810

    Biden wants to cut SS. FJB!!!!!

  15. @slynn246

    They need to increase marriage length to collect ex full amount from 10 yrs to 15 yrs. Johnny Carson had 3 ex wives collecting on his record. Hugh Hefner had 2 exes qualify. Plus the widow.
    I'm shocked to see D3 proposal is to let exes collect after just 5 years.

  16. @rickyaz8640

    All these changes would take so long to take effect no one near retirement age now would be affected

  17. @Liberty-tn3rs

    Josh ; Your have explained how to compute provisional income with SS on your white board many times. Is there a online calculator for this ?????

  18. @denisep.98

    I asked our SS field office about this. Just standard "what ifs" should they have to come up with reduction ideas. This is NOT in effect. Josh was correct, this is just one of those things they have to come up with for cost cutting proposals – not even up for consideration.

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