Social Security’s financial challenges are commonly linked to an aging population, declining birth rates and a shrinking ratio of workers to retirees. However, growing income inequality may also be placing considerable pressure on the program. An increasing share of national earnings now goes to higher-income workers whose wages exceed the Social Security payroll tax limit. … Read more
Social Security’s long-term funding crisis is often blamed on America’s aging population, falling birth rates and the shrinking number of workers supporting retirees. But another factor is adding pressure to the system: income inequality. As more income flows to high earners, a larger share of wages is falling above the Social Security payroll tax cap. … Read more
For decades, many older Americans depended on their monthly Social Security check arriving by mail. But that system is now being phased out as the Social Security Administration moves toward electronic payments. The SSA plans to complete the full transition this year, meaning most beneficiaries will receive payments through direct deposit or a Treasury-approved prepaid … Read more
Social Security recipients could face automatic benefit cuts within the next several years if lawmakers fail to address the program’s growing funding gap. The latest trustees’ projections show the retirement trust fund could be depleted by late 2032. That does not mean Social Security would disappear, but it does mean the program would no longer … Read more
A major Social Security funding deadline is approaching, raising fresh concerns for retirees, workers and families who expect the program to support them in the future. Social Security is not expected to disappear or stop receiving money. Workers and employers will continue contributing through payroll taxes. However, the program’s retirement trust fund is projected to … Read more
Millions of Americans are paying close attention after the latest Social Security trustees report warned that the trust fund supporting retiree and survivor benefits may run short earlier than expected. According to the report, the Old-Age and Survivors Insurance trust fund, known as OASI, could begin depleting by the fourth quarter of 2032 if Congress … Read more
Social Security recipients and future retirees may need to start preparing for a possible financial shock. A recent projection shows that the retirement trust fund could become depleted in 2032, which may leave the program able to pay only about 78% of scheduled benefits if Congress does not act. That could mean a possible 22% … Read more
Millions of Americans planning for retirement need to pay close attention to one important Social Security rule: full retirement age. While benefits can still begin as early as age 62, claiming early can permanently reduce monthly payments. The change matters because Social Security is a major source of income for many retirees. Understanding the difference … Read more
Retirees may have an extra reason to look forward to October this year. While many people associate fall with cooler weather and seasonal changes, seniors across the United States will be watching for something more important: the Social Security cost-of-living adjustment for 2027. The annual COLA announcement will determine how much Social Security payments increase … Read more
Social Security spousal benefits can be confusing for many couples planning retirement. While most people understand that workers can receive benefits based on their own earnings record, fewer people know that spouses may also qualify for monthly payments based on their partner’s work history. This lack of understanding can lead to costly retirement planning mistakes. … Read more