Social Security benefits increase in 2025, issue looms in election

The Social Security Administration announced Thursday, Oct. 10, that beneficiaries will receive a 2.5% increase in 2025 . That amounts to a boost of about $50 per month, on average. More than 70 million Americans will be affected.

Social Security is often a big issue during election years. Vice President Kamala Harris has stated she would strengthen Social Security by "making millionaires and billionaires pay their fair share in taxes."

Right now, payroll tax deductions for Social Security stop after a person earns $168,600.

In 2019, as a U.S. senator, Harris co-sponsored the Social Security Expansion Act. The bill proposed subjecting all income over $250,000 per year to the Social Security payroll tax. However, the bill was referred to the Senate Finance Committee.

Former President Donald Trump has said on the campaign trail that he is in favor of eliminating the federal tax on Social Security income. He also said he would protect Social Security benefits by having a strong economy.

Economists have sounded the alarm that the Social Security trust fund will run out of money in the year 2025 due to an aging population and fewer workers contributing to the system. The shortfall could result in reduced benefits for retirees in the future.

The 2.5% cost of living increase is lowest increase since 2021. Still, the head of AARP says it will help older Americans better afford items such as groceries and gasoline.

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