00:00Welcome, beneficiaries and future retirees, to a critical discussion about the upcoming
00:05changes to your Social Security payments. Driven by economic shifts, new legislation,
00:11and evolving demographics. These modifications are set to reshape the financial landscape for
00:17millions of Americans. First, let's talk about the Cost of Living Adjustment, or COLA. This
00:24annual adjustment is designed to help your benefits keep pace with inflation.
00:28Initially, a 100% withholding was proposed. But this has been revised down to a more manageable
00:3510% of benefit payments for those facing financial hardship. This is a direct response to concerns,
00:42especially given that many overpayments were due to SSA errors, not beneficiary wrongdoing.
00:48Historically, the average annual COLA has been 3.4%.
00:52Since its implementation in 1975, financial experts warn of its potential depletion by 2033,
01:02which could trigger automatic benefit cuts of 21% if Congress doesn't act. For younger workers born
01:09after 1960, the full retirement age is projected to gradually increase from 67 to 68, or even more.
01:17This means a maximum Social Security tax of over $10,900 for employees and employers.
01:27In 2025, this could mean a full retirement age of 74 anyone born in 1981 or later, though the option
01:34to claim benefits earlier with steeper reductions will remain. With baby boomers retiring, annual deficits
01:41continue to drain these reserves. As of September 30 of this year, all Social Security payments,
01:48including retirement, SSI, and SSDI benefits, must be made electronically. This means increased
01:56benefits for nearly 3 million Americans who receive a pension from work not covered by Social Security.
02:02The next few years will be pivotal for the financial planning of millions of Americans.
02:07For more information on Social Security, the most important important people are interested in
02:09understanding these changes. Understanding these changes is not just important, it's essential.
02:13Affected beneficiaries should have already received retroactive payments, averaging over $6,700,
02:20with monthly increases averaging around $360. While this may improve response times,
02:27it could pose challenges for older adults without internet access.
02:31as digital id requirements and enhanced online services become mandatory if you're still
02:38receiving a check it's time to make the switch however for 2025 and 2026 the estimated cola
02:46is a more modest 2.5 percent translating to an average monthly increase of just 50 for retired
02:53workers for beneficiaries below full retirement age the limit will be 23 400 in 2025 this is
03:03significantly below the historical average maximum monthly ssi payments have increased for 2025
03:10similarly disability insurance or ssdi is seeing changes to qualification standards and processing
03:17things with plans to modernize evaluations using ai critics argue that the current calculation
03:24method which uses the cpiwe doesn't accurately reflect the rising costs retirees face particularly
03:32in healthcare data shows significant jumps in food shelter and hospital services yet the
03:40official cola announcement doesn't come until october often delaying the response to rapid
03:46price changes beyond cola several other crucial adjustments are underway the social security
03:52administration is actively recovering over payments made to beneficiaries a significant
03:58change affecting nearly half a million americans is the mandatory shift to electronic payments
04:04in a win for many the social security fairness act enacted in january 2025 has eliminated the
04:12windfall elimination provision and the government pension offset now for a pressing concern the
04:18social security trust fund another major adjustment on the horizon is the increase in the full retirement
04:26age the taxable earnings limit is also on the rise for 2025 the maximum earnings subject to social
04:33social security payroll taxes will reach 176 100 a 7 500 increase from 2024 on the technology front the ssa is
04:46undergoing a massive technological overhaul including a new ai powered telecommunications system expected to
04:53be fully implemented by summer 2025 while there's legislative momentum to eliminate taxes on social security benefits
05:01this could come at a significant cost reducing federal revenues by trillions and potentially accelerating
05:08the depletion of the trust fund for those who continue to work while receiving benefits earnings limits are
05:15also increasing finally significant ssi reforms are in motion eliminating food assistance from in-kind support
05:23calculations allowing more disabled individuals to qualify for benefits in summary social security
05:30accounting costs in summary social security in summary social security claims are in general
05:37employers to qualify for benefits in summary social security about financial technology
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