Key Points
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Social Security has undergone some key changes this year already.
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If President Trump gets his way, another major change could arrive.
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DOGE involvement could also lead to additional shake-ups.
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A program like Social Security is apt to undergo changes from year to year. And 2025 has been no exception.
At the start of the year, Social Security benefits rose 2.5% thanks to a cost-of-living adjustment. The earnings-test limits for Social Security also increased, allowing seniors who work and receive benefits at the same time to earn more money before risking having some of those benefits withheld.
The Social Security wage cap also increased. Now, higher earners are paying taxes on an additional $7,500 of income. And while they may not be happy about that, it’s a good thing the wage cap rose seeing as how Social Security could use all of the funding it can get.
Another big change involved the passing of the Social Security Fairness Act, which gets rid of two provisions that previously caused some seniors’ benefits to be reduced — the Windfall Elimination Provision and the Government Pension Offset. Now, more than 3 million people could start seeing larger Social Security checks each month, not to mention receive retroactive pay.
But since we’re not even at the midpoint of the year, it’s possible for more Social Security changes to arrive before 2025 comes to an end. It’s important to be on the lookout in case that happens.
Trump could push for taxes on benefits to go away
A good number of seniors who get Social Security don’t get to keep their monthly benefits in full. Rather, they lose a portion of that income to federal taxes.
President Trump is not a fan of this rule. As part of his campaign, he pledged to eliminate taxes on Social Security. And it’s a policy he’s still looking to move forward.
The problem, though, is that Social Security relies on the taxes seniors pay on benefits for revenue. As it is, Social Security is staring down a funding shortfall that could result in broad benefit cuts in about a decade from now.
If taxes on Social Security benefits go away, it might help seniors in the near term by giving them more money to hang onto. But it then puts those same retirees at risk of having their monthly benefits reduced down the line.
So while this change could happen in 2025, it’s not a given. And it’s also not necessarily a positive change, even though it may seem like it.
More DOGE-related changes could ensue
The Department of Government Efficiency (DOGE) has been tasked with reducing wasteful Social Security spending. And seeing as how the program is looking at a financial shortfall, that’s not necessarily something to bemoan.
One change that could arrive under DOGE is the closure of more Social Security offices. To be clear, it’s not that DOGE is seeking to shutter Social Security offices indiscriminately.
Rather, DOGE’s goal is to help Social Security conserve critical financial resources. Part of that could involve closing down offices that don’t tend to see a lot of foot traffic.
DOGE could also, in the coming months, take additional steps to streamline Social Security. Those could involve making changes to the way beneficiary issues are addressed and expanding online services in favor of in-person assistance.
These changes might seem like unwanted ones. But it’s important to remember that the ultimate goal is to prevent Social Security cuts and keep the program running smoothly. It’s going to take a large effort to make that happen, whether DOGE is part of the process or not.
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