Trust Fund Depletion Nearing Critical Point The Old-Age and Survivors Insurance (OASI) Trust Fund may run out by 2033–2034, according to the Social Security Trustees. This deadline in 2025 is prompting Congress to explore tax increases, benefit modifications, and retirement age rises.
Changes in COLA Following reduced inflation in 2024, Social Security recipients might expect a 2–3% COLA in 2025. This change affects approximately 70 million Americans' purchasing power as healthcare and housing costs rise disproportionately.
Age of Full Retirement Rises Americans born after 1960 can retire at 67. This means anyone turning 65 in 2025 must wait two years for full benefits, unless they accept a lesser sum for early retirement.
Early Claimant Earnings Limits Increase If you work and claim benefits before full retirement age, the 2025 earnings maximum has increased somewhat. After reaching $22,320 (up from 2024), $1 is withdrawn from benefits for every $2 earned beyond the cap.
Benefits are still taxable Based on income, up to 85% of Social Security benefits may be taxed in 2025. Since 1980, income criteria for taxation haven't been updated for inflation, therefore more pensioners are paying taxes on their pensions.
Policy Reform Potential Is High After the 2024 election, new officials might make 2025 a key year for Social Security reform. Bipartisan alternatives may include raising the payroll tax cap, altering high-income retiree benefits, or offering younger workers private investment options.