Social Security is a cornerstone of retirement income for millions of seniors in the United States, providing financial support after decades of work. For today’s seniors, the question of whether Social Security will still exist is both important and complex. The program is indeed still here and continues to pay benefits, but it is undergoing changes and facing challenges that affect its future and how benefits are delivered.
Social Security was designed as a social insurance program to provide income to retirees, disabled individuals, and survivors of deceased workers. It is funded primarily through payroll taxes collected from current workers and their employers. The money collected is used to pay benefits to current retirees and other beneficiaries. However, demographic shifts such as longer life expectancies and lower birth rates have put financial pressure on the system. More people are drawing benefits for longer periods, while fewer workers are paying into the system relative to the number of beneficiaries.
Despite these challenges, Social Security remains operational and continues to provide monthly payments to millions of seniors. Recent updates show that benefits are adjusted annually to keep up with inflation through a cost-of-living adjustment (COLA). For example, in 2026, retirees can expect a COLA increase projected around 2.7%, which translates to roughly $54 more per month for the average retiree. This adjustment helps maintain the purchasing power of benefits, although some argue the COLA formula does not fully capture the real expenses faced by seniors, especially healthcare costs.
One significant change affecting today’s seniors and near-retirees is the gradual increase in the full retirement age (FRA). The FRA is the age at which a person can claim full Social Security benefits without reduction. For those born in 1960 or later, the FRA will be 67 starting in 2026, up from 65 in earlier generations. This change was legislated decades ago to reflect longer life spans and to help sustain the program financially. For seniors born before 1960, the FRA is slightly lower but has been increasing incrementally over the past years.
There are also adjustments to work-related rules. For example, in 2025, the Social Security Administration will withhold $1 of benefits for every $2 earned over $23,400 for those who have not reached full retirement age. This earnings test is designed to encourage people to delay claiming benefits if they continue working, which can increase their eventual monthly payments through delayed retirement credits.
Concerns about the long-term solvency of Social Security persist. The program’s trust fund,
