MARCH 2025 Newsletter: How New Administration Might Affect Social Security

As we navigate the changes brought by the new administration, it's important to stay informed about how these developments might impact Social Security. The Department of Government Efficiency (DOGE) has initiated significant budget cuts, resulting in the closure of several Social Security offices and a reduction in the workforce from approximately 57,000 to 50,000 employees.¹These measures aim to streamline operations and reduce federal spending, but they may also lead to longer wait times for assistance and delays in processing benefits applications.²

One of the key concerns is the potential interruption of benefit payments. Former SSA Commissioner Martin O'Malley has warned that payments to beneficiaries could be interrupted within 30 to 90 days due to the changes.¹Additionally, the SSA has advised beneficiaries to be vigilant against scammers who might exploit the situation to steal benefits and personal information.³It's crucial to stay informed and take necessary precautions to protect your benefits.

Another significant change is the gradual increase in the full retirement age (FRA) for Social Security. For individuals born in 1960 or later, the FRA is now 67.⁴While you can start receiving reduced benefits as early as age 62, waiting until the FRA ensures you receive 100% of your benefits. Delaying benefits beyond the FRA can further increase your monthly payments. We encourage you to review your retirement plans and consult with your financial advisor to make informed decisions.

To address these changes, we recommend the following steps: First, ensure your contact information is up to date with the SSA to receive timely notifications. Second, considersetting up a My Social Security account onlineto manage your benefits and monitor for any fraudulent activity. Third, review your retirement strategy with your financial advisor to account for the changes in FRA and potential delays in benefit payments. Lastly, stay informed about any further updates from the SSA and reach out to us with any concerns or questions.

^{1 Forbes (https://www.forbes.com/sites/teresaghilarducci/2025/03/05/four-trump-threats-to-social-security/)}

^{2 MSN (https://www.msn.com/en-us/money/retirement/this-is-how-trumps-social-security-layoffs-could-affect-your-benefits/ar-AA1AjlIl)}

^{3 MSN (https://www.msn.com/en-us/money/human-resources/social-security-administration-warns-of-massive-layoffs-what-it-means-to-you/ar-AA1A1cdT)}

^{4 Newsweek (https://www.newsweek.com/social-security-taxes-change-under-new-bill-impacting-millions-retirees-2027449)}

Don’t Forget to Check Your Withholding

When was the last time you checked your tax withholding? Having the correct amount of tax withheld from your wages is part of managing your taxes. The amount you withhold depends on your income, the number of children you claim on your return, and more. 

The IRS has a helpful tool on their site called their Tax Withholding Estimator that can help you know if you have too much or too little tax withheld from your wages. Before using the tool, have all your paperwork handy, including your W2, 1099, 1095-A, and 1099-NEC, and any other forms to determine how much your income is taxable.

This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.

^{Tip adapted from IRS.gov}

Cybersafety Tip: Stay Vigilant Against Social Security Scammers

Be cautious when receiving unsolicited calls, emails, or messages claiming to be from the Social Security Administration (SSA). Scammers often impersonate SSA representatives and demand personal information like your Social Security number, bank account details, or payment for supposed "back taxes" or "suspicious activity." Remember, the SSA will never ask for sensitive information through unsolicited communication. If in doubt, hang up or ignore the message and contact theSSAdirectly through official channels to verify the request. Always protect your personal information and report suspicious activity immediately.

If six pheasants are in a stand of cattails, and a hunter shoots one of them, how many will remain amid the cattails?

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Last Month's Riddle: A palindrome is any word, phrase, or number that reads the same, either forward or backward. Can you think of a palindrome word spelled in all capitals that looks the same backward, forwards, or upside down?
Answer: NOON