AP PHOTOS: Panama protests have lasted 45 days and counting
Authorities and protesters were injured Thursday in eastern Panama when border police tried to open a highway blocked in an Indigenous community.
President José Raúl Mulino has said he will not reverse the social security changes, nor will he allow protesters to obstruct roads.
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This is a photo gallery curated by AP photo editors.
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Increase FICA Rates The Federal Insurance Contributions Act (FICA) is the federal payroll tax, and is deducted from employee's paychecks. It's the main way Social Security is funded and increasing the current FICA rate — which is 12.4% between employees and employers combined — could make an impact, according to Nicole E. Asher, CFP®, CPWA®, ChFC® Senior Vice President, Senior Wealth Management Advisor at Greenleaf Trust. 'When FICA originated in 1937, it was 2%. It has slowly increased over the years,' she explained. 'In 1950, we saw the first increase to 3%. By 1960, we were at 6%. By 1970, it was 8.4%. And by 1980, at 10.10%. In 1990, it was raised to 12.4%, and has not been raised since.' Read More: Raise the Wage Cap As of 2025, the wage cap for Social Security is $176,100, according to the Social Security Administration (SSA). This means wages above said amount are not taxed for Social Security. 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'If you are like me and still working, it is likely that when we file, we will still receive benefits from Social Security. But they may be less than what we were expecting,' Asher said. 'It could also mean that depending on what course of action is chosen to remedy the problem, we could face higher taxes, reduced after tax income, or a delay on when we can file for benefits.' The situation is still uncertain, but Asher suggested speaking with a financial advisor to run an analysis and model your retirement with a reduction in Social Security benefits and or reduced after-tax income to prepare. 'What you might find is that, while it is not ideal to face reduced benefits, you are still able to live comfortably. If not, start planning now to address that shortfall,' she said. Multiple changes need to happen to fix the problem, and Barnes believes we will see a 'blend of the most talked-about options: a significant hike in the income cap, modest payroll tax increases (though this has the least political support), a gradual increase in the retirement age and a revised COLA formula.' While these changes will make a notable impact, it won't solve every problem; it will simply buy the program more time. More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard 3 Reasons Retired Boomers Shouldn't Give Their Kids a Living Inheritance (And 2 Reasons They Should) 5 Cities You Need To Consider If You're Retiring in 2025 This article originally appeared on Social Security Isn't Broke — but These 4 Fixes Could Change Your Benefits Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
