Big News for Social Security Recipients: What to Expect This Week

Get ready, Social Security beneficiaries! This Thursday, you'll find out how much your benefits will increase next year. Experts predict a 2.5% boost, which is less than the past two years. Last year, benefits went up by 3.2%, and in 2023, they saw a huge 8.7% increase due to high inflation. The reason for the smaller increase this time? Inflation is finally cooling off. Around 70.6 million people rely on Social Security, with an average monthly benefit of about $1,920. A 2.5% increase would mean an extra $48 each month. But not everyone is happy. Some retirees worry that this raise won't be enough to keep up with rising costs. Sherri Myers, an 82-year-old from Florida, is thinking about getting a part-time job at Walmart to make ends meet. She can't afford to buy fresh vegetables at the grocery store, and even fast food is expensive.

Social Security is facing a financial shortfall in the coming years. The program's trust fund might not be able to pay full benefits starting in 2035. If that happens, the government could only pay 83% of scheduled benefits. Social Security is funded by payroll taxes from workers and employers. In 2024, the maximum earnings subject to these taxes was $168,600. Next year, it's expected to go up to $174,900. Both Vice President Kamala Harris and former President Donald Trump have different ideas for fixing Social Security. Harris wants to make the rich pay more taxes to keep the program strong. Trump promises not to cut benefits or change the retirement age and wants to give seniors tax breaks. In August, the AARP asked both candidates how they would protect the Social Security Trust Fund. Harris said she'd make sure the wealthy pay their fair share. Trump said he'd protect Social Security with economic growth and not change the retirement age.

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