Will Social Security be there for you?

1036. Is Social Security in trouble, or is it just a lot of political noise? Laura answers a listener’s question about what the changes to the retirement fund mean for your financial future. You’ll learn the new tax caps that employees and the self-employed must pay and how to protect your retirement safety net.

Key takeaways

• According to the latest 2026 Trustees Report, the Social Security retirement fund is now projected to face a shortfall by 2032, sooner than previous estimates.
• The Social Security wage base has increased to $184,500 for 2026. High earners will pay a maximum of $11,439 as employees, while the self-employed face a maximum cap of $22,878.
• Retirement benefits for Social Security participants are based on your highest 35 years of earnings.
• While you can claim benefits as early as age 62, doing so permanently reduces your benefits by about 30%. 
• Delaying benefits past your Full Retirement Age (FRA) pays 8% more per year until age 70.
• Social Security benefits may be taxable if your "combined income" (AGI + tax-exempt interest + 50% of benefits) exceeds modest thresholds.

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