In the spirit of the season, the Washington Examiner has identified 12 issues we believe will shape and influence 2025 and beyond. The incoming Trump administration has made the fight against illegal immigration and the use of tariffs its flagship policy items. The U.S. will also possibly undergo a health revolution, while very real questions need to be answered on everything from social security reform to the military to the changing landscape of the energy sector. Part Three is on Social Security.
Retirees make up a larger proportion of citizens than ever before after birth rates sank to historic lows over the past few years, hitting below the replacement rate that is needed to sustain the United States’s population.
Nearly 73 million people across the country now receive Social Security Administration benefits as part of a vast federal social safety net program.
There are a few changes coming to Social Security in 2025, regardless of President-elect Donald Trump’s actions during his second term. Here’s a rundown of four shifts you can prepare for ahead of the holidays, largely due to inflation and wage trends.
BUSINESS-UNION DIVIDE A ‘TOUGH STRADDLE’ FOR TRUMP AHEAD OF SECOND TERM
COLA Adjustments
The cost-of-living adjustment (COLA) is one of the biggest changes slated to come to Social Security next year.
“The COLA is tied to inflationary changes, so as the rate of inflation decreases, so does the COLA,” Kevin Thompson, a finance expert, told Newsweek. “This will be the lowest increase in the COLA since 2021 when the increase was 1.3 percent.”
In Jan. 2025, Social Security recipients will see a 2.5% raise in their payments, adding around $48 per month for the average filer and an estimated $39 per month for the typical worker with eligible disabilities.
The COLA has increased by an average of 2.6% annually over the past decade, although last year’s COLA increase was calculated to be 3.4%.
WHICH ITEMS WOULD BE AFFECTED BY TRUMP’S PROPOSED TARIFFS ON CANADA AND MEXICO
Increases in Medicare B premiums
Social Security beneficiaries typically have their Medicare Part B premium deducted directly from their monthly payment if they are enrolled in the federal health insurance program.
Medicare is a federal health insurance program for citizens 65 years or older. It also covers eligible beneficiaries younger than 65 with certain health conditions. An estimated 56.1 million people across the country received Medicare Part B in 2019.
Beginning in 2025, Social Security beneficiaries on the Medicare B plan will start to see $10.30 more a month deducted from their monthly payment.
That’s because Medicare Part B premiums will increase from $174.70 per month to $185 per month.
Although the premium increase will be somewhat offset by COLA adjustments, it’s still a change beneficiaries should be tracking.
WHAT TRUMP’S ECONOMIC PICKS COULD FORETELL FOR SECOND ADMINISTRATION
“I would also remind seniors that Medicare premiums that mandatorily come out of Social Security have been growing at a rate of 7.42 percent for Part B and 6.73 percent on Part D,” Joseph Patrick Roop, the president of Belmont Capital Advisors told Newsweek. “This is a large driving factor why many times the revised income goes down on Social Security even after a small COLA.”
Earnings test adjustment
Workers are affected by a federal policy called the earnings test limit, which may temporarily reduce their social security benefits until they reach full retirement age.
In 2024, the earnings test limit for those for those who will not reach FRA until a later year was $22,320. In 2025, the earnings test limit will increase to $23,400, and beneficiaries who have not reached FRA will have $1 withheld from their Social Security payment for every $2 in work income.
That means the beneficiaries making above $23,400 a year will be able to keep over $1,000 more of their money annually starting in 2025 before they face benefit reductions.
Tax increases
More people paying into Social Security will have to pay a tax on the program in 2025.
That’s because the maximum taxable earnings limit, which is the highest income subject to Social Security tax, is set to increase.
In 2024, the Social Security tax limit was $168,600, meaning people who earned more than that amount were not required to pay the tax. The tax limit in 2023 was $160,200.
In 2025, the maximum taxable earnings limit is rising to $176,100. Any current worker earning up to this amount will be required to pay the Social Security tax of 6.2% on their income each for both employees and employers.
What’s next?
Trump pledged to stay far away from making cuts to Social Security on the campaign trail this year.
However, experts warn reforms are needed as the federal program faces a looming crisis.
CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER
Social Security faces a $3.5 trillion shortfall over the next decade, according to the Tax Foundation.
“Fear not about Social Security going away. That’s not going to happen,” said Stephen Goss, chief actuary at the Social Security Administration, during a panel discussion in October. “The challenge is for Congress to come up with ways to either bring down the scheduled benefits, raise the tax revenue coming in, or some combination of the two, which they have always done in the entire history of this program.”
2024-12-27 13:00:00, http://s.wordpress.com/mshots/v1/https%3A%2F%2Fwww.washingtonexaminer.com%2Fin_focus%2F3256937%2Fmajor-changes-coming-to-social-security-regardless-trump-presence%2F?w=600&h=450, In the spirit of the season, the Washington Examiner has identified 12 issues we believe will shape and influence 2025 and beyond. The incoming Trump administration has made the fight against illegal immigration and the use of tariffs its flagship policy items. The U.S. will also possibly undergo a health revolution, while very real questions need to be answered on everything from social security,
In the spirit of the season, the Washington Examiner has identified 12 issues we believe will shape and influence 2025 and beyond. The incoming Trump administration has made the fight against illegal immigration and the use of tariffs its flagship policy items. The U.S. will also possibly undergo a health revolution, while very real questions need to be answered on everything from social security reform to the military to the changing landscape of the energy sector. Part Three is on Social Security.
Retirees make up a larger proportion of citizens than ever before after birth rates sank to historic lows over the past few years, hitting below the replacement rate that is needed to sustain the United States’s population.
Nearly 73 million people across the country now receive Social Security Administration benefits as part of a vast federal social safety net program.
There are a few changes coming to Social Security in 2025, regardless of President-elect Donald Trump’s actions during his second term. Here’s a rundown of four shifts you can prepare for ahead of the holidays, largely due to inflation and wage trends.
BUSINESS-UNION DIVIDE A ‘TOUGH STRADDLE’ FOR TRUMP AHEAD OF SECOND TERM
COLA Adjustments
The cost-of-living adjustment (COLA) is one of the biggest changes slated to come to Social Security next year.
“The COLA is tied to inflationary changes, so as the rate of inflation decreases, so does the COLA,” Kevin Thompson, a finance expert, told Newsweek. “This will be the lowest increase in the COLA since 2021 when the increase was 1.3 percent.”
In Jan. 2025, Social Security recipients will see a 2.5% raise in their payments, adding around $48 per month for the average filer and an estimated $39 per month for the typical worker with eligible disabilities.
The COLA has increased by an average of 2.6% annually over the past decade, although last year’s COLA increase was calculated to be 3.4%.
WHICH ITEMS WOULD BE AFFECTED BY TRUMP’S PROPOSED TARIFFS ON CANADA AND MEXICO
Increases in Medicare B premiums
Social Security beneficiaries typically have their Medicare Part B premium deducted directly from their monthly payment if they are enrolled in the federal health insurance program.
Medicare is a federal health insurance program for citizens 65 years or older. It also covers eligible beneficiaries younger than 65 with certain health conditions. An estimated 56.1 million people across the country received Medicare Part B in 2019.
Beginning in 2025, Social Security beneficiaries on the Medicare B plan will start to see $10.30 more a month deducted from their monthly payment.
That’s because Medicare Part B premiums will increase from $174.70 per month to $185 per month.
Although the premium increase will be somewhat offset by COLA adjustments, it’s still a change beneficiaries should be tracking.
WHAT TRUMP’S ECONOMIC PICKS COULD FORETELL FOR SECOND ADMINISTRATION
“I would also remind seniors that Medicare premiums that mandatorily come out of Social Security have been growing at a rate of 7.42 percent for Part B and 6.73 percent on Part D,” Joseph Patrick Roop, the president of Belmont Capital Advisors told Newsweek. “This is a large driving factor why many times the revised income goes down on Social Security even after a small COLA.”
Earnings test adjustment
Workers are affected by a federal policy called the earnings test limit, which may temporarily reduce their social security benefits until they reach full retirement age.
In 2024, the earnings test limit for those for those who will not reach FRA until a later year was $22,320. In 2025, the earnings test limit will increase to $23,400, and beneficiaries who have not reached FRA will have $1 withheld from their Social Security payment for every $2 in work income.
That means the beneficiaries making above $23,400 a year will be able to keep over $1,000 more of their money annually starting in 2025 before they face benefit reductions.
Tax increases
More people paying into Social Security will have to pay a tax on the program in 2025.
That’s because the maximum taxable earnings limit, which is the highest income subject to Social Security tax, is set to increase.
In 2024, the Social Security tax limit was $168,600, meaning people who earned more than that amount were not required to pay the tax. The tax limit in 2023 was $160,200.
In 2025, the maximum taxable earnings limit is rising to $176,100. Any current worker earning up to this amount will be required to pay the Social Security tax of 6.2% on their income each for both employees and employers.
What’s next?
Trump pledged to stay far away from making cuts to Social Security on the campaign trail this year.
However, experts warn reforms are needed as the federal program faces a looming crisis.
CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER
Social Security faces a $3.5 trillion shortfall over the next decade, according to the Tax Foundation.
“Fear not about Social Security going away. That’s not going to happen,” said Stephen Goss, chief actuary at the Social Security Administration, during a panel discussion in October. “The challenge is for Congress to come up with ways to either bring down the scheduled benefits, raise the tax revenue coming in, or some combination of the two, which they have always done in the entire history of this program.”
, In the spirit of the season, the Washington Examiner has identified 12 issues we believe will shape and influence 2025 and beyond. The incoming Trump administration has made the fight against illegal immigration and the use of tariffs its flagship policy items. The U.S. will also possibly undergo a health revolution, while very real questions need to be answered on everything from social security reform to the military to the changing landscape of the energy sector. Part Three is on Social Security . Retirees make up a larger proportion of citizens than ever before after birth rates sank to historic lows over the past few years, hitting below the replacement rate that is needed to sustain the United States’s population. Nearly 73 million people across the country now receive Social Security Administration benefits as part of a vast federal social safety net program. There are a few changes coming to Social Security in 2025, regardless of President-elect Donald Trump’s actions during his second term. Here’s a rundown of four shifts you can prepare for ahead of the holidays, largely due to inflation and wage trends. BUSINESS-UNION DIVIDE A ‘TOUGH STRADDLE’ FOR TRUMP AHEAD OF SECOND TERM COLA Adjustments The cost-of-living adjustment (COLA) is one of the biggest changes slated to come to Social Security next year. “The COLA is tied to inflationary changes, so as the rate of inflation decreases, so does the COLA,” Kevin Thompson, a finance expert, told Newsweek . “This will be the lowest increase in the COLA since 2021 when the increase was 1.3 percent.” In Jan. 2025, Social Security recipients will see a 2.5% raise in their payments, adding around $48 per month for the average filer and an estimated $39 per month for the typical worker with eligible disabilities. The COLA has increased by an average of 2.6% annually over the past decade, although last year’s COLA increase was calculated to be 3.4%. WHICH ITEMS WOULD BE AFFECTED BY TRUMP’S PROPOSED TARIFFS ON CANADA AND MEXICO Increases in Medicare B premiums Social Security beneficiaries typically have their Medicare Part B premium deducted directly from their monthly payment if they are enrolled in the federal health insurance program. Medicare is a federal health insurance program for citizens 65 years or older. It also covers eligible beneficiaries younger than 65 with certain health conditions. An estimated 56.1 million people across the country received Medicare Part B in 2019. Beginning in 2025, Social Security beneficiaries on the Medicare B plan will start to see $10.30 more a month deducted from their monthly payment. That’s because Medicare Part B premiums will increase from $174.70 per month to $185 per month. Although the premium increase will be somewhat offset by COLA adjustments, it’s still a change beneficiaries should be tracking. WHAT TRUMP’S ECONOMIC PICKS COULD FORETELL FOR SECOND ADMINISTRATION “I would also remind seniors that Medicare premiums that mandatorily come out of Social Security have been growing at a rate of 7.42 percent for Part B and 6.73 percent on Part D,” Joseph Patrick Roop, the president of Belmont Capital Advisors told Newsweek. “This is a large driving factor why many times the revised income goes down on Social Security even after a small COLA.” Earnings test adjustment Workers are affected by a federal policy called the earnings test limit, which may temporarily reduce their social security benefits until they reach full retirement age. In 2024, the earnings test limit for those for those who will not reach FRA until a later year was $22,320. In 2025, the earnings test limit will increase to $23,400, and beneficiaries who have not reached FRA will have $1 withheld from their Social Security payment for every $2 in work income. That means the beneficiaries making above $23,400 a year will be able to keep over $1,000 more of their money annually starting in 2025 before they face benefit reductions. Tax increases More people paying into Social Security will have to pay a tax on the program in 2025. That’s because the maximum taxable earnings limit, which is the highest income subject to Social Security tax, is set to increase. In 2024, the Social Security tax limit was $168,600, meaning people who earned more than that amount were not required to pay the tax. The tax limit in 2023 was $160,200. In 2025, the maximum taxable earnings limit is rising to $176,100. Any current worker earning up to this amount will be required to pay the Social Security tax of 6.2% on their income each for both employees and employers. What’s next? Trump pledged to stay far away from making cuts to Social Security on the campaign trail this year. However, experts warn reforms are needed as the federal program faces a looming crisis. CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER Social Security faces a $3.5 trillion shortfall over the next decade, according to the Tax Foundation. “Fear not about Social Security going away. That’s not going to happen,” said Stephen Goss, chief actuary at the Social Security Administration, during a panel discussion in October. “The challenge is for Congress to come up with ways to either bring down the scheduled benefits, raise the tax revenue coming in, or some combination of the two, which they have always done in the entire history of this program.”, , , https://www.washingtonexaminer.com/wp-content/uploads/2024/10/donald-trump-social-security-tax.webp, Washington Examiner, Political News and Conservative Analysis About Congress, the President, and the Federal Government, https://www.washingtonexaminer.com/wp-content/uploads/2023/11/cropped-favicon-32×32.png, https://www.washingtonexaminer.com/feed/, Emily Hallas,