Latest news with #2030s
Yahoo
10 hours ago
- Business
- Yahoo
6 Social Security Changes Experts Predict Could Come in the Next Decade
Social Security is a lifeline for millions of Americans, but experts warn that the program faces serious financial challenges in the years ahead. Lawmakers are under growing pressure to act as the trust fund's reserves are projected to run short in the early 2030s, per Social Security trustees report. For You: Read Next: 'The most significant reforms that have been discussed for years include raising the full retirement age, modifying the payroll tax cap, adjusting the benefit formula, and revising the cost-of-living adjustment (COLA),' said Shannon Benton, executive director of the Senior Citizens League. Below we dive into some of these possible social security changes. One of the most likely Social Security changes is raising the full retirement age, which is the age when Americans can claim full benefits. According to the Congressional Budget Office, the full retirement age is already set to rise to 67 for workers born after 1959, and several proposals would gradually increase it to 68, 69 or even 70 for future retirees. This move is seen as a way to account for longer life spans and to help shore up Social Security's finances. Check Out: However, raising the FRA would mean that many future retirees would have to wait longer to receive full benefits. 'Delaying full benefits would effectively reduce lifetime benefits for many retirees who claim benefits early, particularly those unable to continue working into their late 60s,' Benton explained. Another major reform under discussion is modifying or eliminating the payroll tax cap, which limits the amount of income subject to Social Security taxes. According to Benton, only earnings up to $168,600 are currently taxed for Social Security, leaving higher earners' additional income untaxed. Proposals like Congressman John Larson's Social Security 2100 Act would apply payroll taxes to wages above $400,000, creating what's known as a 'donut hole.' This means income between the current taxable cap and $400,000 wouldn't be taxed for Social Security, but income above that threshold would. Over time, as the cap rises, this gap would close and all high earnings would be subject to Social Security taxes. Adjusting the Social Security benefit formula is another reform that could be enacted to improve the program's solvency and equity. The current formula is progressive, replacing a higher percentage of income for lower earners and less for higher earners. 'Some plans propose reducing benefits for higher earners while modestly boosting them for lower-income beneficiaries,' Benton said. For example, the Bowles-Simpson plan would cut benefits for high earners and boost them for low earners, according to the Tax Foundation. These changes aim to provide greater income security for the most vulnerable retirees while reducing costs for the system as a whole. The way Social Security benefits are adjusted for inflation could also see significant changes in the next decade. 'One recurring proposal is to adopt the Chained CPI, which tends to produce lower inflation estimates than the current CPI-W used for COLAs,' Benton explained. Critics argue this would erode retirees' purchasing power over time, especially for those who live longer. Alternatively, Benton and The Senior Citizens League support using the Consumer Price Index for the Elderly (CPI-E), which better reflects seniors' spending patterns and would likely result in higher COLAs. The debate centers on balancing the need for program solvency with protecting retirees' standard of living. A gradual increase in the payroll tax rate is another option experts believe could help close Social Security's funding gap. According to the Social Security Administration, the current rate is 6.2% for employees and 12.4% for the self-employed, split between workers and employers. 'Even a small increase, phased in over time, could significantly improve solvency,' Benton said. This solution spreads the cost across all workers and helps ensure Social Security's future without drastic benefit cuts. Benton predicts that changes to how Social Security benefits are taxed could be on the horizon, particularly for higher-income retirees. The Concord Coalition reported that up to 85% of benefits can be taxed depending on income. However, the income thresholds are not indexed to inflation, so more beneficiaries are taxed each year. Proposals include lowering the income thresholds or increasing the share of benefits subject to taxation for higher earners. This would raise additional revenue for the trust fund and target those most able to afford it. However, such changes could be unpopular among middle- and upper-income retirees, making them politically sensitive. More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard 25 Places To Buy a Home If You Want It To Gain Value Here's the Minimum Salary Required To Be Considered Upper Class in 2025 This article originally appeared on 6 Social Security Changes Experts Predict Could Come in the Next Decade
CNN
07-05-2025
- Entertainment
- CNN
Disney announces first new park in 15 years
Disney announces first new park in 15 years Disney announced plans to open a new theme park in Abu Dhabi. It'll be the company's seventh theme park location and won't be ready until the 2030s. In an exclusive interview, Chairman of Disney Experiences Josh D'Amaro told Becky Anderson why it chose the capital of the UAE. 01:44 - Source: CNN Vertical Trending Now 14 videos Disney announces first new park in 15 years Disney announced plans to open a new theme park in Abu Dhabi. It'll be the company's seventh theme park location and won't be ready until the 2030s. In an exclusive interview, Chairman of Disney Experiences Josh D'Amaro told Becky Anderson why it chose the capital of the UAE. 01:44 - Source: CNN How $60M in tourism revenue is at risk if Alcatraz reopens After Trump's suggestion to reopen Alcatraz as a working prison, CNN's Veronica Miracle hopped aboard the ferry and visited the island – along with its throng of tourists – to get a first-hand look at how $60M in tourism revenue could be at risk if the president's plans come to fruition. 00:40 - Source: CNN Diddy Trial day one: Prospective jurors The jury selection in Sean "Diddy" Combs' racketeering and sex trafficking trial started today. CNN's Kara Scannell explains who the prospective jurors are and who has been dismissed. 00:57 - Source: CNN Rare volcanic eruption not seen in nearly 40 years Hawaii's Kilauea Volcano could be seen hurling lava upwards of 300 feet into the air during a series of 'rapid rebounds,' which scientists say hasn't been seen in nearly 40 years. 00:33 - Source: CNN Man injects himself over 600 times with snake venom Tim Friede, a self-taught snake expert from California, injected himself with snake venom 654 times over 18 years and later contributed his blood to help scientists develop a new universal antivenom. 01:42 - Source: CNN Hundreds of dachshunds gather in Hungary in record breaking attempt In Hungary, dachshunds and their owners gathered in an attempt to break the record of biggest ever dog walk – a record previously set at 897 by the German city of Regensburg. The Hungarian Records of Association tallied the dogs as they walked through the street with their owners. 00:41 - Source: CNN Bored at the airport? For these travelers, it's showtime! Dancer and choreographer Blake McGrath felt the urge to whip out a dance combo while waiting for his flight at Dallas-Fort Worth International. The flight left without him, but when he uploaded the video to TikTok, it quickly went viral and eventually grabbed over 6.7 million views. 01:41 - Source: CNN 'Where's my camera?': Astronaut shares wondrous views from space NASA astronaut Don Pettit describes his love for photography and the images he took in his first press conference since returning from his fourth mission to space. 00:48 - Source: CNN Shedeur Sanders target of NFL draft prank call During the NFL draft, Shedeur Sanders, one of football's biggest draft prospects, received a call saying he was picked up by the New Orleans Saints, but the call turned out to be a prank. Sanders was later selected by the Cleveland Browns as the 144th overall pick in the fifth round. 01:15 - Source: CNN Robotics team overcomes wildfire destruction to reach world championships After the Palisades Fire destroyed their school and robotics lab, 4th and 5th graders from Marquez Charter Elementary School rebuilt their robots—and their hope—to compete on the world stage. 01:05 - Source: CNN He bought gold at Costco. He's not cashing in yet With gold prices touching record highs recently, some buyers of Costco gold bars are sharing their love of bullion on social media. But one gold bug tells us he's planning to be a lifelong investor in the precious metal. 01:58 - Source: CNN Key evidence in Karen Read trial Karen Read, who is accused of causing the death of her Boston police officer boyfriend, is being retried in Massachusetts. Read has been charged with second-degree murder, manslaughter and leaving the scene. A mistrial was declared last year after jurors said they were at an impasse. CNN's Jean Casarez breaks down key evidence. 01:33 - Source: CNN Earth week ends with a smiling face in the sky Just before sunrise on Friday, April 25, US stargazers can find a celestial "smiley face" along the eastern horizon as a waning crescent moon aligns with Venus and Saturn. 00:50 - Source: CNN Scientists discover car inside sunken WWII warship NOAA researchers discovered a 1940s Ford Super Deluxe "Woody" inside the sunken USS Yorktown, a famed WWII aircraft carrier lost during the Battle of Midway. 00:42 - Source: CNN
CNN
07-05-2025
- Entertainment
- CNN
Disney announces first new park in 15 years
Disney announces first new park in 15 years Disney announced plans to open a new theme park in Abu Dhabi. It'll be the company's seventh theme park location and won't be ready until the 2030s. In an exclusive interview, Chairman of Disney Experiences Josh D'Amaro told Becky Anderson why it chose the capital of the UAE. 01:44 - Source: CNN Vertical Trending Now 14 videos Disney announces first new park in 15 years Disney announced plans to open a new theme park in Abu Dhabi. It'll be the company's seventh theme park location and won't be ready until the 2030s. In an exclusive interview, Chairman of Disney Experiences Josh D'Amaro told Becky Anderson why it chose the capital of the UAE. 01:44 - Source: CNN How $60M in tourism revenue is at risk if Alcatraz reopens After Trump's suggestion to reopen Alcatraz as a working prison, CNN's Veronica Miracle hopped aboard the ferry and visited the island – along with its throng of tourists – to get a first-hand look at how $60M in tourism revenue could be at risk if the president's plans come to fruition. 00:40 - Source: CNN Diddy Trial day one: Prospective jurors The jury selection in Sean "Diddy" Combs' racketeering and sex trafficking trial started today. CNN's Kara Scannell explains who the prospective jurors are and who has been dismissed. 00:57 - Source: CNN Rare volcanic eruption not seen in nearly 40 years Hawaii's Kilauea Volcano could be seen hurling lava upwards of 300 feet into the air during a series of 'rapid rebounds,' which scientists say hasn't been seen in nearly 40 years. 00:33 - Source: CNN Man injects himself over 600 times with snake venom Tim Friede, a self-taught snake expert from California, injected himself with snake venom 654 times over 18 years and later contributed his blood to help scientists develop a new universal antivenom. 01:42 - Source: CNN Hundreds of dachshunds gather in Hungary in record breaking attempt In Hungary, dachshunds and their owners gathered in an attempt to break the record of biggest ever dog walk – a record previously set at 897 by the German city of Regensburg. The Hungarian Records of Association tallied the dogs as they walked through the street with their owners. 00:41 - Source: CNN Bored at the airport? For these travelers, it's showtime! Dancer and choreographer Blake McGrath felt the urge to whip out a dance combo while waiting for his flight at Dallas-Fort Worth International. The flight left without him, but when he uploaded the video to TikTok, it quickly went viral and eventually grabbed over 6.7 million views. 01:41 - Source: CNN 'Where's my camera?': Astronaut shares wondrous views from space NASA astronaut Don Pettit describes his love for photography and the images he took in his first press conference since returning from his fourth mission to space. 00:48 - Source: CNN Shedeur Sanders target of NFL draft prank call During the NFL draft, Shedeur Sanders, one of football's biggest draft prospects, received a call saying he was picked up by the New Orleans Saints, but the call turned out to be a prank. Sanders was later selected by the Cleveland Browns as the 144th overall pick in the fifth round. 01:15 - Source: CNN Robotics team overcomes wildfire destruction to reach world championships After the Palisades Fire destroyed their school and robotics lab, 4th and 5th graders from Marquez Charter Elementary School rebuilt their robots—and their hope—to compete on the world stage. 01:05 - Source: CNN He bought gold at Costco. He's not cashing in yet With gold prices touching record highs recently, some buyers of Costco gold bars are sharing their love of bullion on social media. But one gold bug tells us he's planning to be a lifelong investor in the precious metal. 01:58 - Source: CNN Key evidence in Karen Read trial Karen Read, who is accused of causing the death of her Boston police officer boyfriend, is being retried in Massachusetts. Read has been charged with second-degree murder, manslaughter and leaving the scene. A mistrial was declared last year after jurors said they were at an impasse. CNN's Jean Casarez breaks down key evidence. 01:33 - Source: CNN Earth week ends with a smiling face in the sky Just before sunrise on Friday, April 25, US stargazers can find a celestial "smiley face" along the eastern horizon as a waning crescent moon aligns with Venus and Saturn. 00:50 - Source: CNN Scientists discover car inside sunken WWII warship NOAA researchers discovered a 1940s Ford Super Deluxe "Woody" inside the sunken USS Yorktown, a famed WWII aircraft carrier lost during the Battle of Midway. 00:42 - Source: CNN
