All articles tagged with #socialsecurity
The article outlines various financial changes expected in 2026 due to the One Big, Beautiful Bill Act, including large tax refunds, new deductions for seniors and charitable giving, increased SALT caps, and modifications to gambling and estate laws, alongside potential financial challenges from cuts to social safety net programs and higher costs in areas like energy and student debt management.
A new analysis indicates that President Trump's recent tax and spending law, dubbed 'One Big, Beautiful Bill,' will accelerate the timeline for potential Social Security benefit cuts, possibly as soon as 2032, due to reduced income from tax changes and ongoing demographic challenges like aging populations and lower birth rates. The long-term financial health of Social Security remains strained, with projections showing a significant unfunded obligation and the trust fund depleting by 2033, highlighting the need for comprehensive reforms.
President Trump's 'Big, Beautiful Bill' accelerates the depletion of Social Security funds, with the trust fund projected to run out by 2034, potentially leading to benefit cuts of up to 23%, though political measures are likely to prevent this scenario.
US Social Security and Medicare programs are projected to run short of funds in 2033, three years earlier than previously estimated for Medicare, due to higher-than-expected hospital expenditures, prompting calls for early legislative action to address financing issues.
A record surge in Social Security benefit applications in early 2025 raises concerns about the program's financial health, driven by recent policy changes and fears of future benefit cuts due to long-term funding shortfalls. Many retirees are claiming benefits early, potentially jeopardizing their future payouts, amid warnings of a looming depletion of the trust fund by 2033 and possible benefit reductions if reforms are not enacted.
Social Security advocates are raising concerns after former President Donald Trump appointed a Wall Street executive to lead the Social Security Administration (SSA). Critics argue that this move could undermine the agency's mission to serve the public, fearing that a leader with a Wall Street background may prioritize financial interests over the needs of beneficiaries.
President-elect Donald Trump has appointed Frank Bisignano, CEO of fintech company Fiserv, to lead the Social Security Administration. Bisignano, a seasoned business executive with a history at JPMorgan Chase and Citigroup, is a GOP donor who supported Trump in 2019. Trump's decision aligns with his campaign promise to eliminate taxes on Social Security benefits, and he praised Bisignano's leadership skills in a post on Truth Social.
The Trump administration's potential impact on personal finances includes extending the child tax credit and 2017 tax cuts, which primarily benefit higher-income households. Trump's proposals to eliminate federal taxes on Social Security and other incomes could deplete Social Security funds by 2031. His administration is unlikely to support student loan forgiveness and may introduce tariffs and mass deportations, potentially increasing consumer prices and inflation. Healthcare costs could rise if enhanced tax credits expire, and housing costs may be affected by labor shortages in construction due to deportations.
A potential Trump administration, with Republican control of Congress, could significantly impact older adults and those with disabilities by reducing government involvement in their care. Proposed policies include mass deportations worsening caregiver shortages, changes to Social Security and Medicare, and cuts to programs like the Older Americans Act. Trump's stance on healthcare may lead to increased costs and reduced access to services, while his immigration policies could exacerbate labor shortages in caregiving sectors.
A significant number of American seniors rely almost exclusively on Social Security for their retirement income, with an AARP analysis showing that about one in seven recipients over 65 depend on it for nearly all their income. This often results in a drastic lifestyle change from their working years, including cutting back on expenses, downsizing their living arrangements, or depending on family support to make ends meet.
A TikTok user, Kuru (@kuruthegemini), sparked a discussion about the absurdity of the U.S. retirement age, pointing out that with a retirement age of 65 and a life expectancy of 76.1 years, Americans have very little time to enjoy retirement. Despite the Social Security Administration setting the retirement age at 67 for those born after 1960, the comparison with countries like Saudi Arabia, which has a retirement age of 47, highlights the stark differences in retirement systems. Kuru's commentary reflects a broader concern about the quality of life during retirement years and the need for a new approach to retirement planning.
In 2024, SSI beneficiaries will receive a cost-of-living adjustment, but they must be cautious during months when two checks are issued, as it could push them near the $2,000 asset limit, risking overpayment notices and benefit reductions. The asset limits, unchanged since 1989, may be raised to $10,000 for individuals and $20,000 for couples if a bipartisan bill is passed. JPMorgan Chase CEO Jamie Dimon has called for this fix, highlighting the disincentive for salary increases among those eligible for SSI. Beneficiaries can also use ABLE accounts to save up to $100,000 without penalties.
Social Security recipients may need to file a tax return in 2024 depending on their income levels and filing status. Single filers with a gross income over $25,000, or married couples filing jointly with a gross income over $32,000, may have to pay taxes on up to 50% to 85% of their benefits. Filing a tax return can also be beneficial for those who want to claim refundable tax credits or have had federal income tax withheld, as they might be eligible for a refund. The Social Security Administration provides a Benefit Statement to help recipients determine their taxable benefit amount.
The Social Security Administration has announced a 3.2% cost-of-living adjustment for social security benefits in 2024, resulting in an average increase of over $50 per month for recipients. This marks the third consecutive year of increases due to inflation, although the 2024 adjustment is smaller than the previous two years.
Social Security and Supplemental Security Income (SSI) recipients in the United States will see a 3.2% increase in their benefits in 2024 due to a cost-of-living adjustment. This increase is designed to help beneficiaries cope with rising expenses amid inflation. The average monthly increase will be over $50, with the payment schedule based on the recipient's birth date. This marks the third consecutive year of benefit increases following a 8.7% raise in 2023 and a 5.9% raise in 2022. The first payments with the new increase began in January, with SSI recipients receiving their adjusted benefits on December 29 due to the New Year holiday.