What problem is going to happen to the Social Security fund in the future?

The main problem facing Social Security is that its trust funds are projected to become unable to pay 100% of scheduled benefits around 2032-2035, leading to potential benefit cuts (around 20-23%) unless Congress acts, due to an aging population, more retirees per worker, and increased longevity. The shortfall, estimated at around $25 trillion over 75 years, requires Congress to either raise taxes (like the payroll tax cap) or reduce benefits, or a combination, to ensure full payments.

What is the main concern about the future of Social Security?

In a recent poll, 85 percent of Americans said the program will be vital to their well-being, but 79 percent expressed concern that Social Security “will run out of money and stop paying benefits in the near future.” It's true that the program faces significant financial challenges.

What are the big changes coming to Social Security in 2025?

The COLA was 2.5 percent in 2025. Nearly 71 million Social Security beneficiaries will see a 2.8 percent COLA beginning in January 2026. Increased payments to nearly 7.5 million people receiving SSI will begin on December 31, 2025. (Note: Some people receive both Social Security benefits and SSI).

Is there a problem with Social Security funding?

Social Security serves as a crucial source of income for millions of retirees today. And there are many workers who hope to collect monthly benefits once their careers end. The problem, though, is that Social Security is facing a major funding shortfall that could result in benefit cuts.

How likely is it that Social Security will go broke?

Introduction. As a result of changes to Social Security enacted in 1983, benefits are now expected to be payable in full on a timely basis until 2037, when the trust fund reserves are projected to become exhausted.

Here’s What Is Changing With Social Security in 2025

What will replace Social Security benefits?

In the proposals presented to the Commission, the use of retirement bonds--and annuities based on bond accumulations- would also replace the entire benefit structure of Social Security for the future.

What is the biggest problem with Social Security?

The gap between tax dollars flowing into the system and benefits flowing out is getting wider. The main issue is with Social Security's retirement program, whose costs have exceeded its income every year since 2021. The gap, which was $70.4 billion in 2023, is projected to balloon to $414.5 billion in 2033.

Why won't Congress fix Social Security?

Both parties have been reluctant to move Social Security legislation because doing so would come with political pain: raising taxes or cutting benefits. Even so, there are several powerful reasons for Congress to tackle Social Security solvency in 2025.

What is happening on March 31, 2025 with Social Security?

At the conclusion of the transition period, on March 31, 2025, SSA will enforce online digital identity proofing and in-person identity proofing. SSA will permit individuals who do not or cannot use the agency's online “my Social Security” services to start their claim for benefits on the telephone.

What does Warren Buffett say about Social Security?

Warren Buffett's core message on Social Security is that cutting benefits is a major mistake, as a rich country must care for its elderly, but he acknowledges the system's financial challenges and suggests solutions like raising the taxable income cap for Social Security taxes, slightly increasing the payroll tax, and gradually raising the retirement age, urging Congress to act before trust fund insolvency forces drastic cuts. He sees Social Security as a vital, successful government program that needs responsible adjustments, not benefit reductions. 

What is the major change coming to Social Security checks?

Benefits will increase by 2.8%

The 2026 Social Security cost-of-living adjustment (COLA) is 2.8%. This is the increase all Social Security beneficiaries, including disabled and spousal beneficiaries, will receive, beginning with their January check.

Who qualifies for an extra $144 added to their Social Security?

You qualify for an extra ~$144 on your Social Security check if you have a Medicare Advantage (Part C) plan with a "Part B Giveback" benefit, which refunds some or all of your Medicare Part B premium, appearing as extra cash in your check, but eligibility depends on living in the plan's service area and paying your own Part B premiums. The "144" figure was common when the Part B premium was around that amount, but the actual refund varies by plan and location, potentially exceeding the full premium. 

What is the highest Social Security check anyone can get?

The maximum Social Security benefit varies by retirement age, with the highest possible monthly amount in 2026 being around $5,181 if you wait until age 70, while claiming at Full Retirement Age (FRA) yields about $4,152, and claiming at age 62 results in approximately $2,969. To get the maximum, you must have earned the taxable maximum for at least 35 years, had significant earnings above the annual wage base ($184,500 in 2026), and delayed claiming benefits past your FRA. 

What's changing with Social Security in 2025?

Cost-of-Living Adjustment (COLA) for Current Retirees: If you're currently receiving Social Security benefits, there's good news: a 2.5% cost-of-living adjustment (COLA) is coming in 2025.

Why is the Social Security trust fund running out of money?

Social Security's trust fund is projected to run low because of a demographic shift: fewer workers are paying into the system for each retiree drawing benefits, a trend worsened by lower birth rates and longer lifespans. Additionally, wage growth for top earners has outpaced the Social Security tax cap, meaning less overall income is taxed, while increased payouts (like from recent legislation) and higher healthcare costs for beneficiaries accelerate depletion. This shortfall means that after the trust fund assets are depleted, incoming payroll taxes alone won't cover full benefits, requiring Congress to act. 

How much will Medicare premiums increase in 2025 for seniors?

For 2025, the standard Medicare Part B premium increased by $10.30 to $185.00 per month, with higher amounts for high-income earners, while the Part B deductible rose to $257; Part A premiums also saw modest increases for those who don't qualify for premium-free coverage, affecting roughly 8% of beneficiaries. 

Will senior citizens get a raise in 2025?

The dollar amount increase to checks will vary depending on a person's benefit amount, but the average Social Security Retirement benefit, $2,008.31 in July 2025, will grow by about $56.

What did Congress just pass regarding Social Security?

What is the Social Security Fairness Act (Act) and who does it help? The Act was signed into law on January 5, 2025. The Act ends the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO).

Is it better to start Social Security in December or January?

Starting Social Security in January is generally better than December because you'll receive an extra month of benefits and potentially benefit from the new year's Cost-of-Living Adjustment (COLA), plus it allows you to capture more Delayed Retirement Credits (DRCs) if you're waiting past Full Retirement Age (FRA). Waiting until January locks in a full month of credit and ensures you get the latest COLA before potentially working into the new year, maximizing your benefit, notes MassMutual and Rand Financial Planning. 

Why do people who never worked get Social Security?

But even if you never worked and therefore don't have an earnings record, you're not necessarily out of luck. If you're married (or were married) to someone who's entitled to Social Security, you can collect spousal benefits equal to 50% of your husband or wife's benefits at full retirement age.

What does Suze Orman say about when to take Social Security?

Suze Orman strongly advises waiting as long as possible to claim Social Security, ideally until age 70, to maximize your monthly benefit, explaining that delaying provides a significant guaranteed annual increase (around 8%) and offers crucial inflation protection for a longer retirement. While some suggest claiming at 62 and investing the money, Orman counters that most people don't invest it and end up with less income long-term, emphasizing that a higher monthly check with cost-of-living adjustments (COLAs) is a better, more secure financial tool, especially for the surviving spouse. 

What is predicted to happen to Social Security in the future?

Social Security faces a funding shortfall, with projections from the 2025 Trustees Report indicating the trust fund could run out by 2033, meaning ongoing tax revenue would only cover about 77% of scheduled benefits, leading to an automatic 23% cut for retirees unless Congress acts. While benefits won't disappear entirely, the long-term outlook requires changes like raising the retirement age, increasing payroll taxes, or reducing benefits to ensure full solvency for future generations. The core issue is an aging population, with fewer workers supporting more beneficiaries, straining the system's finances.
 

What are the three ways you can lose your social security benefits?

You can lose Social Security benefits by working while collecting early, leading to earnings limits; incarceration, which suspends payments; or through garnishment for federal debts like taxes, student loans, or child support, along with other factors like remarriage or changes in disability status. 

How much do you have to make to get $3,000 a month in Social Security?

To get around $3,000/month in Social Security, you generally need a high earning history, around $100,000-$108,000+ annually over your top 35 years, but waiting to claim until age 70 maximizes this amount, potentially reaching it with lower yearly earnings, say under $70k if you wait long enough, as benefits are based on your highest indexed earnings over 35 years. The exact amount depends heavily on your specific earnings history and the age you start collecting benefits. 

What is causing the Social Security crisis?

Much of the crisis is being fueled by the overall aging of the U.S. population. Payroll taxes are the primary source of Social Security's funding—and the ratio of working people to retirees has been steadily shrinking since 1950, when there were 16.5 workers to support each retired beneficiary. Today, the ratio is 2.7.