Social Security is 90 years old this year, and it's not a program that has stayed still. It has been changed in various ways over the years -- often due to regular updates.
It's smart to keep up with Social Security and its changes, especially as we approach and enter retirement. Here are some key things to know.
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1. Social Security benefits may underwhelm you
If you're thinking that you can rely on Social Security benefits for much of your retirement income, think again. As of August, the average Social Security retirement benefit was only $2,008 per month, or about $24,000 per year. If your earnings have been above average, you can expect more -- but perhaps not that much more. (The maximum benefit was recently $5,108 -- but hardly anyone will be able to qualify for it.)
So as you plan for your retirement, be sure to have realistic expectations -- and, ideally, aim to set up multiple income streams for your future years.
2. Social Security benefits have increased over time
Fortunately, Social Security benefits do tend to increase over time, via nearly annual cost of living adjustments (COLAs). The latest increase, for 2026, was due to be announced soon, but it's likely to be delayed due to the government shutdown.
The last increase, for 2025, was 2.5%, and the upcoming one is projected to be 2.7%, per the Senior Citizens League.
A key thing to know about these COLAs is that they're calculated suboptimally. They're based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) -- which is arguably the wrong inflation measure to use. It's based on changes in the average prices of household goods such as food, housing and transportation, but it's focused on costs borne by workers more than retirees, though. A better measure for calculating Social Security COLAs would be the Consumer Price Index for the Elderly (CPI-E), which weighs categories such as healthcare and housing more heavily.
3. Actions you take can boost your Social Security benefits
Don't assume you're going to be stuck with a certain fixed benefit. There are multiple ways to increase your future benefits.
A key way is by thoughtfully choosing when to claim your benefits. We can start collecting our benefits as early as age 62, but they will be smaller checks than if we waited until our "full retirement age" (66 or 67, depending on when we were born) -- the age at which we can start collecting the full benefits to which we're entitled, based on our earnings record. Delaying beyond our full retirement age will beef up our benefit checks by about 8% for each year until age 70.
If you opt to claim early, your checks will be smaller, but you'll get more of them, so the difference isn't as great as it might seem. Many people simply need to claim their benefits as soon as possible, but know that if you can delay, waiting until age 70 is the best move for most people.
4. The Social Security surplus is being depleted
Here's a scary reality: If nothing is done to shore up the program, Social Security's trust funds' surplus will run out around 2032, which will result in benefits shrinking to about 77% of the amount due to beneficiaries. (Donald Trump's "Big, Beautiful Bill" has played a part in hastening the depletion.)
So, if Congress doesn't act soon, someone expecting to receive benefits of, say, $2,500 per month may suddenly end up with around $1,925 instead -- and potentially less. What can Congress do? Well, actually there have been many proposed ways to fix Social Security. For example:
- The payroll tax for Social Security could be increased by a little or a lot. It's currently 12.4%, split equally between employee and employer -- 6.2% each. (You may not realize it, but your company contributes as much as you do -- though self-employed people have to pay the full 12.4%.)
- Right now, there's an earnings limit beyond which we are not taxed for Social Security. It increases regularly and is currently $176,100. So someone who earns $1,176,100 pays as much into Social Security as someone who earns $176,100. Various proposals suggest taxing all of everyone's earnings or at least more than the current cap.
- The full retirement age might be increased -- to 68 or even 70.
- Beneficiaries might be means-tested to exclude wealthy folks.
Keeping Social Security fully funded is in the best interest of many millions. If you feel strongly about it, you might want to let your representatives in Washington know.
