The article discusses two significant changes impacting Social Security in 2025. First, the Social Security Administration (SSA) is projected to implement changes in how it defines substantial gainful activity (SGA) for disability benefits. Currently, SGA is a fixed dollar amount. The proposed change will index the SGA level to the national average wage index (AWI), making it more responsive to changes in the broader economy. This means the earnings limit for those receiving disability benefits, or seeking them, will likely increase at a faster rate than currently scheduled.
Second, the Social Security Trust Fund, specifically the Old-Age and Survivors Insurance (OASI) Trust Fund, is projected to be depleted by 2033. While this doesn’t mean benefits will disappear entirely, it means that, without congressional action, benefits will likely be cut to about 80% of promised levels. The article emphasizes the urgency for Congress to address the funding shortfall, as inaction will result in significant benefit reductions for retirees. Possible solutions include raising the full retirement age, increasing the Social Security tax rate, or adjusting the benefit formula. The approaching depletion date underscores the long-term financial challenges facing the Social Security system.
find the original article here: https://finance.yahoo.com/news/two-big-changes-coming-to-social-security-you-need-to-know-about-150020216.html