Social Security: Four upcoming changes by 2025.

Exciting Changes Coming to Social Security for Retirees

The Social Security Administration has big plans for the next two years, aiming to provide retirees with higher benefits and improved customer service. In their recently released “Vision 2025” plan, the administration celebrates 80 years of history and outlines the exciting projects ahead.

Here are four changes that retirees can look forward to:

1. Higher Maximum Benefits: The maximum benefits retirees can receive at full retirement age are adjusted for inflation. In 2023, the maximum benefit increased from $3,345 to $3,627. With current inflation trends, another increase is expected before 2025. The amount each beneficiary can receive varies based on their retirement age, ranging from $2,572 for those retiring at 62 to $4,555 for those retiring at 70.
2. Cost of Living Increase: Retirees can expect a cost-of-living adjustment that raises their monthly benefits each year. The adjustment is based on the consumer price index for urban wage earners and clerical workers. While the increase for 2024 is projected to be 2.7%, the exact amount will be determined by the average inflation rate and CPI-W of the third quarter of the year.
3. Better Customer Service: The SSA is committed to enhancing the customer service experience. They plan to employ exceptional workers and offer flexible communication options to accommodate recipients’ needs. By understanding customers’ experiences and crafting appropriate service options, the SSA aims to provide personalized interactions based on individual preferences and relationships with Social Security.
4. Change for Women: With more women joining the workforce, the SSA predicts that by 2025, over half of women over 60 will receive retirement benefits based on their own work. This number is expected to increase to 70% by 2095. Additionally, more women will be entitled to benefits from their own work and their spouse’s, although this percentage is projected to decrease over time.

While these changes are exciting, the future of Social Security remains uncertain. Ongoing discussions in Congress and concerns about solvency highlight the need for action. Without proper funding by 2033, the program’s trust is expected to run out, potentially leading to decreased payments for recipients.

Stay informed and keep an eye on the evolving landscape of Social Security!