Social Security has long served as a financial safety net for millions of Americans, but the program faces increasing pressure.
Read More: 40 States Where You’ll Feel the Biggest Social Security Increase This Year
Trending Now: 6 Big Shakeups Coming to Social Security in 2025
“Social Security is at a bit of a crossroads,” Paul Miller, managing partner and CPA at Miller and Company, LLP, wrote in an email. According to the latest projections from the Social Security Trustees, the trust fund that helps pay benefits is expected to be depleted by the mid-2030s unless changes are made.
“Now, that doesn’t mean Social Security will disappear, but it does mean that if nothing is done, future benefits could be reduced by roughly 20% or more,” Miller added. “That’s a big deal, especially for retirees who rely heavily on these payments.”
Here are some Social Security changes experts predict could come over the next decade.
Higher Full Retirement Age
Full retirement age (FRA) is the age at which you’ll receive your full Social Security retirement benefit you’ve earned based on your work history. According to the Social Security Administration, the current full retirement age is 67 for those born in 1960 or later.
“We may see the FRA increase from 67 to 68 or beyond for younger workers,” Miller claimed. “This would reduce long-term payouts without cutting current retirees’ benefits directly.”
There have been proposals to raise the FRA, but nothing has been enacted into law, at least as of yet.
One option analyzed by the Congressional Budget Office would gradually raise the FRA from 67 to 70 by increasing it two months per birth year for workers born between 1964 and 1981. Under this proposal, anyone born in 1981 or later would have an FRA of 70.
Workers could still choose to claim benefits as early as age 62, but doing so would result in a steeper reduction in monthly payments than under current law.
Find Out: 8 States To Move to If You Don’t Want To Pay Taxes on Social Security
Tax Adjustments
“Higher-income earners might face increased payroll taxes or see more of their benefits taxed,” Miller wrote. “Currently, only wages up to $168,600 (in 2024) are subject to Social Security tax. Congress could raise or eliminate that cap.”
This cap, known as the taxable maximum, means that any wages above the threshold aren’t taxed for Social Security purposes. One proposed solution is to raise that threshold or remove it altogether so that top earners contribute more to the system.
Another option is to increase the Social Security tax rate. “Increase the SS tax rate from 6.2% (which applies to employers and employees) to a higher amount,” Ash Ahluwalia, managing director and head of Social Security planning at OneTeam Financial, wrote in an email. “This increase in taxes could generate an immediate increase to SS tax revenue.”
Benefit Formula Tweaks
The SSA uses a specific formula to calculate your benefit amount based on “average indexed monthly earnings” and age at retirement.
“Lawmakers could revise the benefit formula to be less generous for high earners, while preserving or even enhancing benefits for lower-income retirees,” Milled noted.
Cost of Living Adjustments
Each year, the SSA increases Social Security benefits by a certain percentage to counteract inflation. For 2025, the SSA announced a COLA of 2.5%, translating to an average increase of $48 per month.
“There may be changes to how COLAs are calculated, possibly switching to a different inflation measure, like the chained CPI, which typically grows more slowly,” Miller remarked.
According to Ahluwalia, Social Security could save millions of dollars by eliminating ongoing increases in Social Security benefits due to COLA.
Alter Social Security Filing Strategies
The agency could also make changes to other parts of the Social Security system, such as the reduction or elimination of spousal benefits, ex-spousal benefits, child benefits and child-in-care benefits or other Social Security benefits.
“Similar changes have happened in the past,” Ahluwalia noted, such as the elimination of filing and suspending, which was a strategy where a worker voluntarily suspends receiving benefit payments at or after their full retirement age. “So it’s possible that SS could reduce what some people may perceive as ‘loopholes‘ in the SS code,” he added.
More From GOBankingRates
- 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025
- 4 Things You Should Do if You Want To Retire Early
- Here's the Minimum Salary Required To Be Considered Upper Class in 2025
- 5 Types of Cars Retirees Should Stay Away From Buying
This article originally appeared on GOBankingRates.com: 5 Social Security Changes Experts Predict Could Come in the Next Decade
