Increased Retirement Age The full retirement age (FRA) for Social Security benefits may increase. Policymakers are debating raising the FRA to address the program's long-term solvency issues, potentially extending the wait for full benefits.
Higher Payroll Taxes To shore up funding, the taxable wage base for Social Security could rise. This means higher-income earners might pay more in payroll taxes as the cap on taxable earnings increases.
Expanded Benefits for Low-Income Retirees Proposed changes aim to provide more robust benefits for lower-income retirees, ensuring they receive adequate support in their later years. This could include raising the minimum benefit amounts.
Adjusted Cost-of-Living Increases Cost-of-living adjustments (COLAs) could shift to a new calculation method, such as the Chained Consumer Price Index (C-CPI). This might result in smaller annual increases for beneficiaries.
New Incentives for Delayed Retirement To encourage workers to delay claiming benefits, Social Security may offer enhanced incentives, such as higher benefit increases for each year of delayed retirement beyond the FRA.
Expanded Survivor and Caregiver Benefits Proposals to provide additional support for widows, widowers, and caregivers are gaining traction. These changes aim to offer more financial stability to individuals who often rely heavily on Social Security.