There’s been a lot of talk lately—on the news, in Congress, and maybe even around your dinner table—about the future of Social Security. Questions like:

• Will it still be there when I retire?
• Will benefits get cut?
• Are taxes going up?

These concerns are understandable, especially with the government openly discussing changes to how Social Security is funded. But before jumping to conclusions, let’s take a breath and focus on what we do know—and what you can do about it.

Where Things Stand in 2025

According to the latest Social Security Trustees Report, the program is still paying out full benefits today—but the trust fund that helps cover shortfalls is projected to run low in the next decade if no changes are made.

That doesn’t mean Social Security is “going broke.” It just means that, unless adjustments are made, the system may only be able to pay out about 75–80% of scheduled benefits starting in the 2030s.

Meanwhile, conversations in Washington continue about how to fix it—whether by adjusting the retirement age, increasing payroll taxes, or tweaking benefit formulas. But nothing has been finalized yet.

So… Should You Be Worried?

Instead of worrying, let’s talk about what you can control.

You can’t predict what Congress will do—but you can build a financial plan that’s flexible enough to handle changes. That includes:

• Understanding how Social Security fits into your bigger retirement picture
• Preparing for the taxes you may owe on your benefits
• Creating alternative income streams so you’re not overly dependent on one source

What About Taxes on Social Security?

In 2025, the formula that determines whether your Social Security is taxed hasn’t changed in decades. And it wasn’t originally designed with today’s retirement income levels or inflation in mind. That means more people are paying taxes on their benefits today than ever before—even those who wouldn’t consider themselves “high earners.”

With no inflation adjustment built into the formula, this trend will likely continue unless Congress updates the system.

Translation: If you haven’t reviewed your retirement tax plan lately, now is a great time.

Planning in a Time of Uncertainty

At Fiat Wealth Management, we’re not in the business of predicting politics. We’re in the business of preparing our clients to navigate whatever changes may come—with clarity, confidence, and a plan built for real life.

Whether Social Security changes a little or a lot, smart planning around timing, taxes, and income sources can help you stay ahead of the curve.

What You Can Do Now

• Review your Social Security benefit estimate
• Understand how your other income may impact benefit taxation
• Explore strategies to reduce future tax burdens
• Build a retirement plan that doesn’t rely too heavily on any one income stream

Bottom line? Social Security isn’t going away—but it is evolving. And your retirement strategy should, too.

Let’s talk about how to build flexibility into your plan—so no matter what 2025 (or beyond) brings, you’ll feel ready.

Schedule a meeting with us today!

952.426.9116 | hello@fiatwm.com

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