5 BIG Changes To Social Security In 2025

today we need to talk about social security and specifically what changes are we going to see for Social Security going into 2025 now over the past couple of weeks I've received dozens of questions from people asking for my opinion my input as to who should they vote for in the upcoming election to ensure that something gets done for social security so today we're going to break that down but here's a little spoiler I'm not going to tell you who to vote for I'm just going to tell you what we are about to see moving forward so if you have questions regarding Social Security want to know if there's going to be any differences moving into 2025 then this is the video for you so all I ask is one thing takes two seconds go ahead hit that like button if you enjoy these daily updates and now let's begin so if you are approaching retirement age or you are already collecting Social Security benefits then this is a very important topic for you but and I want to come out and first just address this who should you vote for if you are concerned about social security well let's start there the first thing I'm going to tell you is it does not matter if you vote for former president Donald Trump or you vote for vice president kamla Harris neither one of them are going to dictate the direction of Social Security that is going to come down to Congress that's going to come down to the house and the Senate so if you want to know who to vote for you have to vote for people that are going to take a seat within Congress if you don't that's where we're going to see the changes now today I want to talk about some five changes these are five Social Security changes that are coming in 2025 now this was a great article I was reading this article uh just recently this is from the mly fool okay I was just reading it just the other day now I want to touch on this because again it doesn't matter who wins the election these changes are still coming but the issue is who do we vote into office to ensure that something happens for Social Security First off for both vice president kamla Harris and for former president Donald Trump they both want to eliminate Social Security taxes they both want to uh eliminate tips or uh taxes on tips as far as uh income there and so again there's going to be changes but these are some big ones first let's talk about the size of a retirees checks look at this the first big change will impact current retirees seniors who are receiving Social Security will see their payments get bigger next year this happens because of of an automatic cost of living adjustment that are built into the benefits program to help offset the erosions of buying power simply means your Cola your cost of living adjustment that's it the size of the check is going to increase likely about 2.6 to 2.7% so here's the troubling part it will likely be less than what inflation is that's part of the issue now I know a lot of people are speculating that we're going to see some some more benefits and you know higher or bigger checks are coming well that's not really the case because again in order to give a larger check to a social security beneficiary has to be approved by Congress I don't see that happening this year so just understand the only increase that Social Security beneficiaries are going to get will be a cost of living adjustment here's the next one the amount you must earn to qualify for a work Credit Now this article goes on to say social security is an earned benefits program you must earn 40 work credits to become eligible for benefits and you can earn up to four credits per year this is per quarter you accumulate work credits by earning and paying taxes on the income you earn in 2024 you must earn $1,730 to qualify for one work credit so if you make $6,990 this year you'll max out the four credits you're eligible for goes on to say right here says the amount you must uh earn to get a work credit increases each year to account for wage growth in 2023 for example you could earn a work credit by making just $1,640 says for those who are working but not earning a ton it's worth paying attention to this change that's coming next year you don't want to find yourself with too few work credits to collect retirement benefits when you get older that is something that most people don't realize don't even understand it until they get closer to that full retirement age I know a lot of people have contacted me over the past few years asking because they have taken time off due to covid they took time off to help raise a family um to have children whatever it may be and again I get it but that could actually hurt you when it comes time to claim your Social Security benefits so just be aware of that here's the next one how much money you can make without affecting your Social Security benefits this is something that I've touched on multiple times recently and the reason why I've touched on this is simple older Americans are now going back into the workforce because their social security benefits do not cover their cost of living they have to go back and work 20 hours a week just to to ensure they have food on the table a roof over their head can pay for their medications right all those things so it's a little bit troubling this article goes on to say if you have reached your full retirement age you are allowed to work as much as you'd like with no impact on your benefits that isn't changing however let's get right down to it however if you're under your full retirement age that's not the case as soon as you hit a certain earnings threshold you start to Forfeit some of your Social Security payments eventually the money comes back to you when your benefits are recalculated at full retirement age but in the meantime you could find your Social Security checks disappear if your salary is too high says the amount you could you can't earn before this happens is changing in 2025 of course it's going to go up because of inflation because this index was inflation this is good news as it means people will uh be able to bring home more in a paycheck and still get benefits says the wage limit in 2024 is $22,300 and the wage limit for 2025 has yet to be announced my guess is it is going to go up obviously because of inflation but as it goes up let's say it's $22,000 you know $800 or $23,000 you can make up to that amount after that that is when it becomes a little bit of an issue because then you got to pay uh for example if you're not yet full retirement at full retirement age um usually if you for every uh you know $2 you make over the amount you have to pay $1 back which means it just comes out of your Social Security benefits so that number will increase and again doesn't matter who is going to be president could be former president Donald Trump could be current vice president KLA Harris doesn't matter that will still go into effect here's the next one how old you must be to claim your benefits without any penalties says near retirees will be impacted by another pretty major change in 2025 which is baked in and happening automatically the age of which you they can claim full benefits is moving later while those who turn 66 in 2024 can claim their full unreduced benefits at 66 and 8 months anyone who is not turning 66 until 2025 must wait to start their payments until 6 6 years of age and 10 months otherwise they'll face monthly uh early filing penalties that apply to those who claim benefits before full retirement age this was something that was passed into law uh you know many years ago so again this is not changing it's already been done here's the next one and this is a big one this is one that I really want to touch on because this is probably the most important thing the amount of income subject to social security tax now says Social Security caps the amount of income you pay taxes on and get credit for when benefits are calculated the cap is 1,00 or $168,600 in 2024 that is this year but is indexed to inflation so it will climb higher next year if you make more than $1 168,000 $600 in 2025 you can expect a higher Social Security tax bill next year once that limit is increased here's where things are at and this is why it's this is why I think this is one of the most important things lawmakers mostly Democrats are saying we need to raise this number from $168,600 we need to raise it but it needs to go up to $400,000 okay $250,000 okay and the reason why this is such a big deal is because Democrats want to take this money and give it to give it back to you in a some of a tax credit child tax credit they want to give you some type of well can call it stimulus but really is it at this point uh I don't know so they want to give you something for uh you know tax credit something for uh education give you money to buy a home right all these different things they want to try to well not really pay down debt that's the least of their worries Republicans say if we're going to increase this okay let's do it but we can't just increase it for the Millionaires and billionaires everybody should be paying into it the exact same and the the reason why you know millionaires are some people say they don't pay their fair share is because usually within the first you know month usually within January they cap out of this they hit their their the max threshold of $168,600 in social security tax right and so that's all they pay on then the rest of the year they don't pay any taxes into Social Security whereas people that make $80,000 a year every single paycheck throughout the entire year they're still paying into it this why Democrats say that they are not paying their fair share we need Millionaires and billionaires to pay more so we'll see if that happens but I want to show you one last thing this right here the Social Security benefits to increase for some Americans under new bill now what are they talking about here well they are talking about um changing things that again have been in place for some time it's right here it says uh so next month we are going to see Representatives Abigail spanberger and V Virginia Democrat and Garrett Graves a Louisiana Republican file a petition they're going to force um uh force a vote on the Social Security Fairness Act so this means the the wp the we which is the windfall elimination provision and the GPO which is the government uh pension offset the for social security for millions of Americans while the bill currently has 325 co-sponsors it only needs 218 signatures now this is going to be this this going to hit the floor they're going to push for this um will this pass I don't know I don't know if it passes before an election I don't think it will but again it could my guess is they just kick the can down the road and come January February March of next year that's likely when something like this will be discussed so just understand right now there are lawmakers that are pushing for some changes for Social Security however these changes might not happen quickly because we have an election that is going to take priority over changes to Social Security so that is where we're at as of today again if you have any questions regarding Social Security please ask your questions down in the comment section below but again thank you guys for watching consider subscribing and I'll see you guys on the next one