Suze Orman's 2025 Advice: Don't Let Fear Drive Your Money Moves – Here's Why Patience With Social Security Is Key

As the new year kicks off, all eyes are on Washington, where discussions about Social Security and Medicare are making waves. With talks swirling about changes to Social Security and Medicare, Suze Orman is urging calm. "We. Don't. Know," she said in her Jan. 2 blog post, pointing out that hasty financial decisions based on speculation are rarely a good idea.

According to the Social Security Administration, nearly 40% of retirees rely on Social Security for most of their income. That makes any talk of benefit cuts particularly nerve-wracking. 

However, Orman reminds readers that Social Security is a popular program across party lines, making drastic changes less likely. “Floating is not policy,” she says, encouraging everyone to wait for solid facts before making decisions.

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While Washington debates, Orman suggests focusing on what can be controlled. According to Investors, the U.S. stock market soared 23.3% in 2024, culminating in a two-year gain of 53.2%, the highest since 1997-1998.

This could mean your portfolio is more stock-heavy than you realize, potentially exposing you to unwanted risk. For example, a 60% allocation to stocks might now be closer to 70% or more. Orman advises rebalancing to match your risk tolerance and long-term goals.

Recurring expenses are another area to tackle. A study by C+R Research revealed that the average household spends $219 monthly on subscriptions, often for services they don't use. Cutting back can free up cash for other priorities. 

For those carrying credit card debt, Orman recommends calling your issuer to negotiate a lower interest rate. According to a study by LendingTree, 76% of consumers who requested a lower credit card APR (Annual Percentage Rate) were successful, potentially saving hundreds of dollars a year.

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On the policy front, the SECURE 2.0 Act will bring significant changes to retirement planning in 2025. According to Investopedia, workers aged 60 to 63 can now make catch-up contributions of up to $11,250 annually to 401(k) or 403(b) plans, compared to $7,500 for others aged 50 and older. 

Employers must also automatically enroll employees in workplace retirement plans at 3% to 10% savings, helping more people build their retirement funds. Taxpayers should also prepare for updates. 

The IRS has adjusted standard deductions and tax brackets for inflation, which could mean slightly more breathing room in 2025. 

However, the real question mark is what happens when individual provisions of the 2017 Tax Cuts and Jobs Act expire at the end of this year. According to the Tax Policy Center, Congress is weighing whether to extend or modify these rules and the outcome could reshape tax bills.

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