July 4, 2025

Linking Northern and Central NJ, Bronx, Manhattan, Westchester and CT

Linking Northern and Central NJ, Bronx, Manhattan, Westchester and CT

Will Social Security Still Be There? What You Need to Know From the 2025 Update

(Courtesy of Medicare Done) I have recently been asked this multiple times, so here is what is going on with the Social Security Trust Fund. The newly released 2025 Social Security and Medicare Trustees Report confirms what many have suspected: Both programs face financial strain. But before you panic or make rushed decisions, it’s important to understand what the report really says and what it means for your retirement.

Here are the key facts:

The Social Security Trust Fund is projected to pay full benefits through 2033. After that, even if no changes are made to the program, Social Security will still be able to pay about 77% of scheduled benefits using ongoing payroll taxes.

Medicare’s Hospital Insurance Trust Fund is also expected to be depleted by 2033, three years earlier than previously estimated. But again, services won’t stop; they will continue to be funded in part by current revenues.

 

What’s Behind the Earlier-Than-Expected Shortfall?

Several factors are at play. The rapidly aging population and rising healthcare costs are placing increased strain on both Social Security and Medicare. Additionally, in 2025, Congress passed the Social Security Fairness Act, which increased benefits for many retired teachers, police officers, firefighters and other civil servants. While this was welcome news for those affected, it also contributed to the updated projections for when the trust funds may run short.

Despite these challenges, benefits are not disappearing. But the uncertainty has already led some people to claim benefits too early, potentially locking in smaller checks for life.

Washington must act if it wants Social Security to survive, but what can you do?

If you’re younger and still working, this is your wake-up call to not rely on Social Security alone. Now is the time to build additional income streams through employer savings plans, IRAs, annuities and life insurance. A solid plan started early can make all the difference.

If you’re nearing retirement, claiming Social Security early out of fear may backfire. It’s important to understand your claiming options and how timing and planning can help you get the most from your benefits.

If you’re already retired, your benefits will continue, but now’s a good time to review your income and spending strategy. If your Social Security paycheck were reduced, would you be okay? Annuities can be a helpful tool to fill the gaps and protect your lifestyle from future changes.

Bottom line: No matter your age, the key is having a plan. With the right strategy, you can feel confident about your future, no matter what happens in Washington.

Curious how this might affect you? Let’s talk. Schedule your free Social Security consultation with Yeshaya Jeremias RSSA at 248-919-8193 or email yeshaya@medicaredone.com. This is a bimonthly series featured in the Health and Business editions focusing on Social Security planning.

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