Social Security is a critical income source for many seniors, with the Social Security Administration reporting that these benefits account for around 31% of all income received by people over the age of 55. For around 39% of men and 44% of women 65 and over, benefits actually account for even more - about half their income. Since so many seniors are reliant on retirement benefits to help them make ends meet, it's a huge problem that the Social Security trust fund is at risk of running dry. Unfortunately, it's a problem that Americans need to reckon with, as Social Security benefits are on track for an automatic benefits cut as early as 2032.
Most people believe Social Security benefits are untouchable. While creditors can't generally garnish these payments, federal law creates important exceptions that can reduce monthly checks for millions of retirees. Understanding which debts can reach your benefits matters because Social Security often represents the majority of retirement income. For someone relying on $2,000 monthly, losing even $300 can mean choosing between prescriptions and groceries.
And while the average retirement benefit today is only $2,071, it's somehow just enough income for some seniors to live on. But it's not a given that every Social Security recipient will get their monthly check in full. Working while collecting Social Security, for example, could result in withheld benefits for exceeding the program's earnings test thresholds. The earnings test applies to Social Security recipients who have not yet reached their full retirement age.
For a long time, Social Security field offices were set up to handle claims on a local basis. But beginning on March 7, the SSA is shifting away from this model to a centralized system where claims are handled on a nationwide level. That's a problem, though, because field office employees tend to be more familiar with local rules and are therefore better equipped to help seniors in their jurisdiction.
The Benefit Formula That Determines Your Monthly Check Social Security doesn't simply pay everyone the same amount in retirement. Instead, the program uses your 35 highest-earning years to calculate an average, then applies a progressive formula through "bend points"-income thresholds where the replacement rate changes. This progressive structure means lower earners receive proportionally more generous benefits relative to their contributions, creating a safety net that provides stronger support where it's needed most while still rewarding higher lifetime earnings.
When it comes to Social Security, your filing age matters for a big reason - it helps determine how much of a monthly paycheck you get. If you wait until full retirement age (FRA) to claim Social Security, for example, you'll get your monthly benefit without a reduction. If you file before FRA, you'll have to accept a reduced monthly benefit for life. And if you file after FRA, your monthly benefit will be permanently boosted.
The earliest age to claim Social Security is 62. Some older Americans, however, opt to wait until full retirement age (FRA) so they can claim their Social Security benefits without a reduction. FRA is 67 for those born in 1960 or later. There's also the option to delay Social Security past FRA for boosted monthly checks. For each year filers hold off, until age 70, their benefits grow 8%.
"Making it more difficult for seniors to get their checks. It's a back door way to cut SS benefits. Horrific." Cuban urged anyone seeing his message to help their loved ones apply for Social Security online to get their benefits approved. But the reality is that not all seniors are tech-savvy, and not everyone has access to someone who can help them navigate the maze of filing for benefits.
Payroll deductions will provide some money for Social Security benefits for decades. However, that payment system and its financials will be strained. The "covered workers per OASDI beneficiary" could also change over the next few decades. Among the reasons are the rate at which people die, the age at which people begin taking their payments, inflation, tax rates, and the taxation of the benefits themselves. Eventually, even fertility rates and the pace at which people are born could have an effect.
Ideas cited by the Brookings Institution from the Progressive Policy Institute, the American Enterprise Institute (AEI) and the Cato Institute all recommend shifting the program away from its current wage-replacement structure toward a flat benefit aimed primarily at preventing poverty in old age. Supporters say a flat benefit would guarantee a basic income floor. Critics warn it would weaken a program that most Americans view as earned insurance and could expose middle-income retirees and homeowners to greater financial risk.
Seniors on Social Security got some positive news this past October - word of a 2.8% cost-of-living adjustment, or COLA. This year's COLA is not going to break any records. However, it's a bit higher than the 2.5% COLA Social Security recipients got in 2025. Now that the new year has begun, you may be wondering when your Social Security COLA will hit. Here's a rundown of what to expect in terms of COLA timing.
