Potential Social Security Changes And Their Impact

This morning the Wyoming State Treasurer's Office announced that Social Security will, probably, see changes ahead.

At the beginning of this year, Social Security bennefits rose 3.2% in line with inflation. Next year's raise, however, might not be as generous, as experts are saying inflation has slowed.

Further, the limit on taxable income could rise. It's gone up every year since 2016, when the limit was $118,500. In 2024 the limit was up to $168,600.

In March this year President Joe Biden proposed greater Social Security taxes for people with incomes above $400,000. This would mean someone who makes $500,000 a year would pay taxes on the current limit, $168,000, and additional taxes on $100,000 of income.

It is not yet clear whether the plan will go forward or not.

A third change would bump up the value of work credits. In 2024, people earned one credit for every $1,730 in earnings, with a maximum of four per year.

"It's natural to assume that Social Security will stay the same from one year to the next, but it's important to keep reading up on the program whether you're a current retiree or new to the labor force. You never know when a given change might impact your finances one way or another" penned personal finance writer Maurie Backman.