IT'S COMING: Major Changes to Social Security SSI SSDI by 2025

what's going on guys it's Jimmy here and we have five different Social Security changes that are coming here no matter who wins the next election and you only have a few months before they actually go into effect here and a lot of people may be surprised at what is coming here and you might think these are good or you might think these are bad here I'm going to give you the details here on what is coming here right now in this video so let's Jump Right In right now we are Live on YouTube so if you can see or hear me let me uh let me know and type yes in the chat and let me know where you're tuning in from around the world type your city state or even country um where you're tuning in from right now in the chat or the comment section also if you can hit the like button for us it really helps us out and lets YouTube know that you appreciate these videos and the information I will most of the time be going live here at 800 PM Eastern Standard Time all right let me give you this information on what is going to be changing here with Social Security uh here we go okay number one the size of your check it's going to be going up but not as much as you probably had hoped yeah people who are receiving Social Security we'll see their payments get bigger next year this is happening because of the cola cost of living adjustments as prices go up benefits du twoo the formula looks at changes to Consumer Price Index CPI to determine how big Cola will be they are currently projecting only a 2.6% increase this is because inflation is not nearly as much as it used to be and um so yeah inflation has settled down this means that uh it's currently at around 2.6% more than last year so inflation is still up but not as much as it used to be so prices are still going up but uh you know we're not at the record high Paces that we were at a few years ago although seniors won't know for sure until October which is not that far away I will keep you up to date as the formula looks at data from the third quarter so I will keep you up to date here when we get the final number let me know what your thoughts are on this if the number was higher that would just mean that inflation is worse okay so remember that the previous increases are locked in you you're you're you've already got that increase that is locked in uh this would be a new increase on top of that okay number two the amount you must earn to qualify for a work credit Social Security is an quote earned benefit program you must earn 40 work credits to become eligible for benefits uh for the basically the minimum amount and you can earn up to four credits per year 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 $692 this year you'll max out the four credits you are eligible for you the amount you must earn to get a work credit increases each year to account for wage growth basically goes up a little bit with inflation in 2023 for example you could earn a work credit by making just 1640 instead of 1730 so it does look like it went up by pretty decent amount 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 number three how much money you can make without affecting your social security benefit if you have reached your full retirement age you are allowed to work as much as you like with no impact down your benefits that's not changing that's not that part is not changing however if you're under your full retirement age that's not the case Okay note the difference there as soon as you hit a certain earnings threshold you start to Forfeit some of your Social Security payments can rewind that there if you want to see the difference eventually the money comes back to you when your benefits are recalculated at full return age but in the meantime you could find your Social Security checks disappear if your salary is too high the amount you can earn before this happens is changing in 2025 likely going up because it is index to inflation this is good news it means that people will be able to bring home more in a paycheck and still get benefits the wage limit in 2024 is 22320 the 2025 limit has not been announced yet number four how old you must be to claim your benefits without any penalties near retirees will be impacted by another pretty major change in 2025 which is baked in and happening automatically how old you must be to claim your benefit without any penalties the age at which they can claim full benefits is moving later while those who turned 66 in 2024 can claim their full unreduced benefits at 66 in 8 months anyone who is not 66 until 25 must now wait to start their payments until 66 and 10 months otherwise they will face monthly early filing penalties that apply to those who claim benefits before full return at age so keeps getting higher and higher age-wise to be able to get full retirement social security this change was set in Motion in 1983 when lawmakers passed a law requiring full retirement AG to gradually move up to help improve Social Security struggling finances which uh is not getting any better here I'll give you details on that here in a second the amount of income subject to Social Security tax this changes one that high income earners may be unhappy about the maximum amount subject to Social Security tax will be higher in 2025 Social Security caps the amount of income you pay taxes on and get credit for when benefits are calculate the cap is in 2024 is 168,00 but it's indexed to inflation so it will climb higher next year to um if you make more than 168,50 five you can expect a higher Social Security Buel next year once this limit is in increased these changes happen because social security has Provisions to deal with inflation because of laws passed long ago no matter who wins the election seniors and future retirees will have to cope with the modifications now as I mentioned here one of the other major problems here kind of alluded in there is that Social Security is running out of money and has been for a while and they've kind of done some changes there in the past like raising the retirement age uh previously and they may have to do that again as if you know almost 70 years old for full retirement age isn't bad enough and the problem here is people paying Social Security their whole lives and if you die before that you literally could get nothing okay the other problem here is that without Social Security um a lot of people retire and have no other I think it's around 50% of people uh retire with no other savings besides Social Security and Social Security literally sends you a letter and says that Social Security is not enough to rely on um in retirement it's supposed to be only about 40% of your retirement um you're supposed to have much more than that but only about 50% of people retire and have only Social Security so uh meanwhile Social Security is running out of money so bad take a look at this social security head tells Congress to make changes or face angry voters and Congress has known this for years and years and years the problem is is that Republicans and Democrats have different ideas what they want to do and neither of them want to be blamed for making changes that will likely be unpopular with people like raising the retirement age or more taxes or or a couple different things that they may have to do which will likely mean uh Cuts or more taxes or raising the raage m m raising the age social security head tells Congress to make changes or face angry voters uh take a look at this social security commissioner Martin Al is warning Congress that it needs to make changes to the Social Security Administration or face leagues of angry voters and the problem is you know every time we talk about this you always see people saying don't touch my Social Security don't touch my Social Security the problem is is if they don't touch the Social Security if they don't do anything there's going to be a massive cut to benefits here in only a few years if they don't make any changes and the problem here is they've likely waited too long already millions of Americans rely on Social Security payments each month the government program supports seniors during retirement as well as those living with disabilities however the program faces a funding crisis with the most recent trustees reports finding the government would run out of money for full payments by 2033 well it's about to be 2025 here in in just a few months so let's say it's 2025 that means that this could run out of money in as little as eight years well that's literally two presidential terms and it's running it's it's getting lower and lower in money here literally every month or every year is the problem right as Americans worri about how the funding problem could further impact their retirements Alia has called attention to another issue Social Security Administration is grappling with understaffing well I'll touch on this here just for a second but SSA has been chronically underfunded and understaffed is continue to decline while the number of beneficiaries we serve keep growing we are serving more people than ever with the lowest Staffing levels in decades we need Congress to ensure social security has the necessary funding and Staffing to provide the type of uh service Americans deserve and have paid for our fixed costs are going up and we're no different than a police department or School in that respect it's like having more students but less teachers we really need Congress to act to restore Staffing otherwise they're going to end up with more Angry constituents upset about weight times and Social Security you know and honestly um I've been talking about this for a couple years now if you've been watching me and nothing got done and and the years keep going by the years keep going by we're going to be down to eight years now Social Security funding and and and that money just keeps going down the money just keeps going down money just keeps going down and before you know it it's going to be seven years and six years and five years and really changes should have been made five or 10 years ago or 15 years ago 20 years ago when they had trillions of dollars more in the trust fund problem is now they they can't wait until they're at zero or even one one year or two years left the the amount left will be so small that they're G to have to make drastic drastic changes uh there's not enough money left in the savings account it's it's like ground zero right there's not enough savings left um what they're talking about it's like a and the number varies right but they're talking about like a 20% cut or something let me see here if no changes are made before the Social Security uh trust fund runs out the most likely result will be a reduction in benefits that are paid out by so by 2033 uh the administration would be able to pay around 75% of benefits which means a 25% reduction to your current Soul security and these are estimates you know sometimes you see it's a little bit less or a little bit more and and you know these these dates change a little bit sometimes it's it's it's a little bit higher a little bit lower because they're estimates right and we won't know exactly until it happens but they continue to have no changes year after year no matter who's the president and and you know Trump was President four years ago then it was Biden and Nei neither of them got anything done and Congress got nothing done and eight years rolled by and there was eight years of dwindling money because there's the system is not does not have it's been going down for a long time there's not enough money going in and there's too much money going out and they've known this for decades and all the way back to I think it was the Reagan Administration when they raised the retirement age okay and they made that small tweet to help change it right and they needed to make another tweak or two to they really need to like you know raise the tax on Everybody by a you know 1% or something or they're talking about you know raising the the tax on the rich or something along those lines and or raise the retirement age a little bit and raise the tax here raise you know make a couple tweaks if they don't do anything which is what's happened because Republicans and Democrats can't agree and they can't pass it in Congress well guess what's going to happen 25% reduction to benefits so this is what happens in Congress and really if you actually look at what's happened in Congress over the last three and a half years as Republicans and Democrats haven't got along with the you know the Republican Le um House of Representatives and the Senate which was um I think it was yeah led by the Democrats almost nothing has gotten done here the last three and a half years because it was you know back and forth almost you know remember the the the Republicans actually impeached their own in the house almost nothing major has gotten done over the last three and a half years um they couldn't even pass border wall funding to help you know everybody knows this major border is is a problem they couldn't even you know they had a Republican and Democrat um you know where they worked on it together Bill and they couldn't even get that done so almost nothing major has been passed in in in Congress here over the last three years because the Republicans and Democrats can't get along and pass anything so we got major problems here so I'll keep you up to date here on everything Happening Here on a daily basis that you need to know about let me know your thoughts here in the comments uh make sure to share these videos with anybody that needs to hear this information make sure to like these videos and 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