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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