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📅 October Social Security Changes: What Families Need to Know
AI POLICY & AGING INTELLIGENCE™ | NEWSLETTER #146
September 20, 2025 | 8-minute read | Curated by HanhDBrown
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📊 SOCIAL SECURITY CHANGES
The Social Security Administration announces the 2026 cost-of-living adjustment October 15, 2025. The Senior Citizens League predicts 2.7%, raising average monthly benefits from $2,008 to $2,062 – an extra $54 monthly.
However, Medicare trustees project Part B premiums jump 11.6% to $206.20, adding $21.50 monthly. For those with both programs, premiums are “automatically deducted from monthly benefit.” The Senior Citizens League found 80% of seniors felt 2024 inflation exceeded their 2.5% increase.
USA Today notes the CPI-W “does a generally poor job of accounting for expenses that matter most to seniors,” particularly medical care, which rose 4.2% in August.
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💰 TAX CHANGES FOR FAMILY CAREGIVERS
Caring.com surveyed 4,000 adults and found more than 50% with living parents claim them as tax dependents:
- 28% started claiming parents on 2023 returns (first time)
- 25% began with 2022 returns
- 40% cite parents’ insufficient income including Social Security
- 35% report medical expenses parents can’t afford
- 74% supporting parents also support children
- 20% of seniors were fraud victims
John Farrell, Caring.com Director: “As the baby boomer generation continues to age, we see how stretched thin the sandwich generation truly is. We talk with caregivers every day trying to hold down a job, provide for their children, and care for aging parents.”
The study found 72% of Gen Z plan to become caregivers, with only 10% saying they won’t.
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🚨 FEDERAL FRAUD PROTECTION
Justice Department arrested 8 defendants for $11,053,989 in losses to 139 victims:
Key Cases:
- Dhruv Patel: Attempted collecting $567,000 in gold bars. Defrauded 12 victims for $9,100,000 total.
- Romance scam: $175,000 stolen, criminal received $70,000
- Tech support: $38,000 from 81-year-old victim
- Fake government agents: $100%,000 stolen 2017-2024
- Student visa holders: $276,000 from multiple elderly
U.S. Attorney DiGiacomo: “If you prey on senior citizens, no matter where you are, we will identify, arrest and prosecute you.”
Government NEVER:
- Asks to withdraw money
- Requests gold bars
- Needs gift cards or crypto
- Requires remote computer access
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🏥 MEDICARE AND MEDICAID UPDATES
KFF reports the July reconciliation law includes $911 billion in Medicaid cuts over 10 years, affecting 22 million people ages 50+. Adults 50-64 face work requirements, though many qualify for exemptions. CBO estimates 5 million could become uninsured.
CMS announced facilities must report infection rates, readmission rates, and discharge outcomes on Medicare.gov. Providers get 30 days to preview before public display.
ElderLawAnswers notes nursing homes cost $10,000+ monthly while Medicaid requires under $2,000 in assets. Understanding “countable” vs “non-countable” assets is essential for planning.
Brookings Institution calculates Social Security’s actuarial deficit at 3.98% of taxable payroll, with proposed solutions including raising retirement age to 70 for highest earners.
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📈 WORKING WHILE ON BENEFITS
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The Fool reports three key changes for 2026:
Earnings Limits Increase:
- $24,360 before benefits reduce (lower limit)
- $64,800 before benefits reduce (upper limit)
- $183,100% maximum taxable earnings
- High earners pay extra $465 in taxes
Common Misunderstanding: Two-thirds incorrectly believe Social Security isn’t protected against inflation. It is, through annual COLAs.
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👨👩👧👦 FAMILY FINANCIAL CONVERSATIONS
AARP interviewed families about money talks. Two-thirds of high-net-worth families avoid these discussions, yet they’re essential.
One family’s approach during winter break covered:
- Life insurance values and claim process
- Account locations and amounts
- Estate documents (will, power of attorney)
- Monthly bills and passwords
- Care preferences (professional vs family)
Background: The father died at 61 without a will. Mother developed Alzheimer’s at 65. Daughter said: “There’s not going to be a better time for a conversation like this.”
Daniel Lash, VLP Financial Advisors: “The conversation should start when adult children are in their 20s, because accidents may happen to parents in their 40s or 50s.”
Technology Support:
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📅 IMPORTANT DATES & ACTIONS
Mark Your Calendar:
- October 15, 2025: Social Security COLA announcement
- January 1, 2026: New Medicare premiums take effect
- January 2026: New earnings limits apply
- April 15, 2026: Tax deadline for dependent claims
Action Steps:
- Calculate real increase: Current benefit × 1.027 minus $21.50
- Document all parent support expenses for taxes
- Review Medicare.gov for facility quality scores
- Schedule family financial conversation before holidays
- Report suspected fraud to IC3.gov immediately
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📚 RESOURCES
Official Sources:
Report Fraud:
Get Help:
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