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Yahoo
23-04-2025
- Business
- Yahoo
SSA Worker: Why DOGE Could Be ‘Sabotaging' Social Security — and How That Affects You
Social Security has long been considered the untouchable 'third rail' of American politics. But a seasoned Social Security Administration (SSA) employee predicts that the upheaval resulting from recent restructuring initiatives implemented by the Department of Government Efficiency (DOGE) is intended to 'destroy Social Security from the inside.' Check Out: Read Next: In an interview with The Daily Beast1 published on April 8, SSA claims technical analyst Rennie Glasgow said, 'We're being pushed to ensure that we cannot perform effectively and efficiently, so that they can privatize. 'I'm almost certain that the goal is privatization for this agency because there's a lot of money they want to get their hands on,' he said. Glasgow, a 15-year veteran of SSA and vice president of Local 3343 of the American Federation of Government Employees, which represents SSA workers, noted that the SSA is remarkably cost-efficient, spending just 1% of its budget on employee costs. In fact, the total administrative costs from both of Social Security's trust funds is less than 1%, according to the SSA.2 Glasgow's suspicion stems in part from workforce reductions that have increased wait times for phone help and in-person assistance. Exacerbating the delays are daily system outages that render staff at Glasgow's Schenectady, New York, office unable to help individuals who might already have waited several hours for their turn at a window. Also concerning is DOGE's demand for secure access to SSA databases — a move Glasgow said circumvents strict controls on beneficiary information and essentially allows DOGE to make up its own rules as it goes. Glasgow is not the only one who suspects that the DOGE-induced chaos is part of a concerted effort to discredit Social Security program operations. Earlier this month, Alex Jacquez, a former National Economic Council senior policy advisor and current chief of policy at Groundwork Collaborative, told Fortune,3 'My view is that the ultimate goal here is what has been the holy grail for Republicans for decades now, which is to privatize the Social Security Administration and privatize Social Security. 'There's already a long list of things that Elon [Musk] and the administration have basically floated as being services that they want the private sector to take over,' Jacquez said. President Donald Trump says his administration won't touch Social Security, and Frank Bisignano, Trump's nominee for SSA commissioner, has denied hearing or thinking of plans for privatization.4 However, Musk is a vocal critic of Social Security. He has called the program a Ponzi scheme and made unsubstantiated accusations, often amplified by Trump, that the SSA is engaging in fraud5 — despite a 99.97% payment accuracy rate for Old-Age, Survivors and Disability Insurance, according to the Office of the Inspector General.6 As Glasgow noted, customer service is already suffering under the weight of cutbacks. That could get worse amid regional office closures and the loss of field and hearing offices due to lease terminations. But if his suspicions about privatization are correct, the restructuring could have a significant impact on Social Security benefits as well. Under the current system, Social Security payroll taxes go into trust funds that invest the money in U.S. Treasuries, which offer predictable but low returns compared to the stock market. Privatization would allow beneficiaries to invest some or all of their payroll withholdings. Proponents say these investments could result in larger nest eggs because of higher returns. Privatization opponents point out that Treasuries are extremely safe because they're backed by the full faith and credit of the U.S. government. That safety allows the SSA to guarantee your Social Security retirement benefits. Stock market returns, on the other hand, are unpredictable and never guaranteed, so your retirement benefits couldn't be guaranteed, either. It's important to remember that Social Security is only meant to replace about 40% of income at full retirement age, which is currently 67. However, a survey by The Senior Citizens League7 found that two-thirds of America's seniors rely on Social Security benefits for more than half of their income, and nearly half of seniors rely on it for 76% to 100% of their income. While higher benefits would have obvious advantages, they'd come at the expense of the safety net millions of seniors rely on to ensure that their most basic needs are met after they leave the workforce. Sources The Daily Beast, 'I Know Musk's Secret Blueprint to Destroy Social Security from The Inside.' (April 9, 2025) ︎ Social Security Administration, 'Social Security Administrative Expenses.' ︎ Fortune, 'Elon Musk's DOGE is undermining the Social Security Administration's technology and operations, former White House official says.' (April 1, 2025) ︎ ABC News, 'Trump SSA pick not seeking to privatize Social Security, will meet people 'where they want to be met.'' (March 25, 2025) ︎ NPR, 'Former head of Social Security says Elon Musk and DOGE are wrong about the agency.' (March 24, 2025) ︎ Payment Accuracy, 'Annual Improper Payments Datasets.' ︎ The Senior Citizens League, 'Two-Thirds of Seniors Rely on Social Security for More Than Half Their Income.' (Nov. 5, 2024) ︎ More From GOBankingRates 5 Luxury Cars That Will Have Massive Price Drops in Spring 2025 4 Things You Should Do if You Want To Retire Early These 10 Used Cars Will Last Longer Than an Average New Vehicle 4 Affordable Car Brands You Won't Regret Buying in 2025 This article originally appeared on SSA Worker: Why DOGE Could Be 'Sabotaging' Social Security — and How That Affects You
USA Today
21-04-2025
- Business
- USA Today
If Congress doesn't save Social Security, you'll pay more than $6,800 a year instead
If Congress doesn't save Social Security, you'll pay more than $6,800 a year instead | Opinion What would the average American need to do to make up for the Trump administration's proposed changes to Old-Age, Survivors, and Disability Insurance? Save a whole lot more – and spend more, too. Show Caption Hide Caption DOGE sets sights on cutting waste from Social Security Administration Social security is the latest target of the Department of Government Efficiency's push to significantly cut down government spending. Fox - 32 Chicago For nearly 100 years, the United States has maintained one of the world's more successful models of social insurance, protecting Americans from the death of a spouse or parent, disability and old age – essentially the risk of outliving one's savings. These are things most of us fear regardless of our means, and – despite the rhetoric – these are not welfare programs. Americans pay into them, and without Social Security, we all will bear more risks that will directly impact our wallets, and potentially the high quality of life we have become accustomed to since its creation. This is why touching Social Security has been viewed as a 'third rail' for decades, and it remains a primary point of contention at the charged town halls across the nation recently. Opinion: If you're not scared about Social Security, you should be Social Security keeps thousands out of poverty You may not think of it when you look at a paystub, but the Old-Age, Survivors, and Disability Insurance (OASDI) line is doing some serious heavy lifting when it comes to many Americans' financial security. It is a premium that offers coverage from the risks that come from not being able to work. When we outlive our ability to work, lose a spouse, become disabled or have a dependent with a disability, Social Security programs provide benefits. Take our poll: It's been nearly 100 days of Trump. Do you think we're better off? | Opinion Forum Across America, the old age and survivors' insurance programs reduce the Supplemental Poverty Measure among those ages 65 and older by 33 percentage points, meaning without Social Security, more than 19.5 million adults would have to survive on incomes below the poverty line (less than $16,000 for a single person in 2025). Among all Americans, Social Security lifts 27.6 million people above the poverty line. Given the decline of defined benefit pensions, most workers today will have to rely on personal savings. With no guarantee of benefits for life, workers face greater risks of outliving their savings or a major downturn in the market. Social Security mitigates these risks. What would the average American need to do to make up for large changes to OASDI? We offer some estimates below, but the answer is straightforward: Save a whole lot more and spend a whole lot more for private insurance coverage. We also must prepare for the state to bear more of the costs of having more people in deeper poverty in our communities. Here's how Americans would fare without Social Security This is how the impact breaks down in specific areas: Retirement. Without any legislative action by Congress, Social Security will have insufficient funds to provide for retirees by 2033. Based on actuarial projections, benefits will have to be cut by 21% immediately. The program will not be "broke" or have "nothing for future retirees." But benefit amounts will be reduced for current and future retirees. The average worker in the U.S. receives about $1,900 per month. This implies a need for current and future retirees to come up with $4,800 per year to maintain the earning power of today's Social Security benefits. Seniors will have to cut expenses, use up more savings and rely more on financial support from family members. Without any legislative action by Congress, Social Security will have insufficient funds to provide for retirees by 2033. Based on actuarial projections, benefits will have to be cut by 21% immediately. The program will not be "broke" or have "nothing for future retirees." But benefit amounts will be reduced for current and future retirees. The average worker in the U.S. receives about $1,900 per month. This implies a need for current and future retirees to come up with $4,800 per year to maintain the earning power of today's Social Security benefits. Seniors will have to cut expenses, use up more savings and rely more on financial support from family members. Disability. For the 161 million workers in the U.S., the chance of developing a disability is not small; in fact, a quarter of today's 20-year-olds will experience a disability before retirement. For an average 40-year-old male, replacing Social Security disability insurance with private coverage would cost roughly $1,200 per year. An estimated 40% of workers have limited disability insurance through an employer, but this coverage offers less protection than Social Security. Moreover, private disability insurers screen applicants, charging some workers more or even denying coverage altogether. Coverage is likely to cost much more than $1,200 per year for some workers – if it is available at all. Social Security provides with the same benefit levels and rules for all workers. For the 161 million workers in the U.S., the chance of developing a disability is not small; in fact, a quarter of today's 20-year-olds will experience a disability before retirement. For an average 40-year-old male, replacing Social Security disability insurance with private coverage would cost roughly $1,200 per year. An estimated 40% of workers have limited disability insurance through an employer, but this coverage offers less protection than Social Security. Moreover, private disability insurers screen applicants, charging some workers more or even denying coverage altogether. Coverage is likely to cost much more than $1,200 per year for some workers – if it is available at all. Social Security provides with the same benefit levels and rules for all workers. Survivors' benefits. As of December 2023, there were more than 5.7 million Americans (more than enough to be the 23rd largest state) receiving Social Security benefits due to a deceased spouse, child or parent. For an average 40-year-old male to purchase similar life insurance coverage privately, premiums would be over $500 per year. Of course, this private coverage is subject to medical exams, and policy renewals come with premium increases. While some private industry workers have limited access to life insurance benefits at work, Social Security survivors' benefits are especially important for lower-income workers with children who depend on their earnings. As of December 2023, there were more than 5.7 million Americans (more than enough to be the 23rd largest state) receiving Social Security benefits due to a deceased spouse, child or parent. For an average 40-year-old male to purchase similar life insurance coverage privately, premiums would be over $500 per year. Of course, this private coverage is subject to medical exams, and policy renewals come with premium increases. While some private industry workers have limited access to life insurance benefits at work, Social Security survivors' benefits are especially important for lower-income workers with children who depend on their earnings. Supplemental Security Income. More than 7.4 million Americans receive more than $63.5 billion in annual payments from SSI. These payments average just over $700 per month for the poorest Americans, including people with disabilities, elderly individuals who had low-paying jobs, and children. If proposals to shift SSI from Social Security to the state occur, the average Wisconsinite would need to contribute $260 per person per year to make up the gap. In the end, if Social Security retirement benefits are reduced due to legislative inaction, Social Security survivors' and disability benefits are removed, and SSI's support for the poorest seniors and people with lifelong disabilities is terminated or handed off to the state, it will cost the average American more than $6,800 per year in added insurance premiums, increased need for savings and state tax increases. We estimate that this number is more than $7,000 per year in 12 states (highest in Connecticut at $7,279 per year) and is more than $6,400 in every state (lowest in Montana at $6,474 per year). This likely far exceeds any reasonable reductions in our payroll taxes, and ignores the costs that family members and communities may take on to support the most economically vulnerable. The insurance protection that Social Security programs provide has tangible economic benefits. Without these programs, we will all need to reassess our financial plans. J. Michael Collins is a professor in the School of Human Ecology and the La Follette School of Public Affairs at the University of Wisconsin-Madison. He is also an associate director at the Institute for Research on Poverty and a member of the National Academy of Social Insurance. Tyler Q. Welch is a PhD candidate in the Wisconsin School of Business' Risk and Insurance department at the University of Wisconsin-Madison. He is also a graduate research fellow at the Institute for Research on Poverty and an associate member of the National Academy of Social Insurance. An earlier version of this column originally appeared in the Milwaukee Journal Sentinel.
Yahoo
21-04-2025
- Business
- Yahoo
If Congress doesn't save Social Security, Trump's cuts will cost you: $6,800 a year
For nearly 100 years, the United States has maintained one of the world's more successful models of social insurance, protecting Americans from the death of a spouse or parent, disability and old age – essentially the risk of outliving one's savings. These are things most of us fear regardless of our means, and – despite the rhetoric – these are not welfare programs. Americans pay into them, and without Social Security, we all will bear more risks that will directly impact our wallets, and potentially the high quality of life we have become accustomed to since its creation. This is why touching Social Security has been viewed as a 'third rail' for decades, and it remains a primary point of contention at the charged town halls across the nation recently. Opinion: If you're not scared about Social Security, you should be You may not think of it when you look at a paystub, but the Old-Age, Survivors, and Disability Insurance (OASDI) line is doing some serious heavy lifting when it comes to many Americans' financial security. It is a premium that offers coverage from the risks that come from not being able to work. When we outlive our ability to work, lose a spouse, become disabled or have a dependent with a disability, Social Security programs provide benefits. Take our poll: It's been nearly 100 days of Trump. Do you think we're better off? | Opinion Forum Across America, the old age and survivors' insurance programs reduce the Supplemental Poverty Measure among those ages 65 and older by 33 percentage points, meaning without Social Security, more than 19.5 million adults would have to survive on incomes below the poverty line (less than $16,000 for a single person in 2025). Among all Americans, Social Security lifts 27.6 million people above the poverty line. Given the decline of defined benefit pensions, most workers today will have to rely on personal savings. With no guarantee of benefits for life, workers face greater risks of outliving their savings or a major downturn in the market. Social Security mitigates these risks. Opinion alerts: Get columns from your favorite columnists + expert analysis on top issues, delivered straight to your device through the USA TODAY app. Don't have the app? Download it for free from your app store. What would the average American need to do to make up for large changes to OASDI? We offer some estimates below, but the answer is straightforward: Save a whole lot more and spend a whole lot more for private insurance coverage. We also must prepare for the state to bear more of the costs of having more people in deeper poverty in our communities. This is how the impact breaks down in specific areas: Retirement. Without any legislative action by Congress, Social Security will have insufficient funds to provide for retirees by 2033. Based on actuarial projections, benefits will have to be cut by 21% immediately. The program will not be "broke" or have "nothing for future retirees." But benefit amounts will be reduced for current and future retirees. The average worker in the U.S. receives about $1,900 per month. This implies a need for current and future retirees to come up with $4,800 per year to maintain the earning power of today's Social Security benefits. Seniors will have to cut expenses, use up more savings and rely more on financial support from family members. Disability. For the 161 million workers in the U.S., the chance of developing a disability is not small; in fact, a quarter of today's 20-year-olds will experience a disability before retirement. For an average 40-year-old male, replacing Social Security disability insurance with private coverage would cost roughly $1,200 per year. An estimated 40% of workers have limited disability insurance through an employer, but this coverage offers less protection than Social Security. Moreover, private disability insurers screen applicants, charging some workers more or even denying coverage altogether. Coverage is likely to cost much more than $1,200 per year for some workers – if it is available at all. Social Security provides with the same benefit levels and rules for all workers. Survivors' benefits. As of December 2023, there were more than 5.7 million Americans (more than enough to be the 23rd largest state) receiving Social Security benefits due to a deceased spouse, child or parent. For an average 40-year-old male to purchase similar life insurance coverage privately, premiums would be over $500 per year. Of course, this private coverage is subject to medical exams, and policy renewals come with premium increases. While some private industry workers have limited access to life insurance benefits at work, Social Security survivors' benefits are especially important for lower-income workers with children who depend on their earnings. Supplemental Security Income. More than 7.4 million Americans receive more than $63.5 billion in annual payments from SSI. These payments average just over $700 per month for the poorest Americans, including people with disabilities, elderly individuals who had low-paying jobs, and children. If proposals to shift SSI from Social Security to the state occur, the average Wisconsinite would need to contribute $260 per person per year to make up the gap. In the end, if Social Security retirement benefits are reduced due to legislative inaction, Social Security survivors' and disability benefits are removed, and SSI's support for the poorest seniors and people with lifelong disabilities is terminated or handed off to the state, it will cost the average American more than $6,800 per year in added insurance premiums, increased need for savings and state tax increases. USA MapInfogram We estimate that this number is more than $7,000 per year in 12 states (highest in Connecticut at $7,279 per year) and is more than $6,400 in every state (lowest in Montana at $6,474 per year). This likely far exceeds any reasonable reductions in our payroll taxes, and ignores the costs that family members and communities may take on to support the most economically vulnerable. The insurance protection that Social Security programs provide has tangible economic benefits. Without these programs, we will all need to reassess our financial plans. J. Michael Collins is a professor in the School of Human Ecology and the La Follette School of Public Affairs at the University of Wisconsin-Madison. He is also an associate director at the Institute for Research on Poverty and a member of the National Academy of Social Insurance. Tyler Q. Welch is a PhD candidate in the Wisconsin School of Business' Risk and Insurance department at the University of Wisconsin-Madison. He is also a graduate research fellow at the Institute for Research on Poverty and an associate member of the National Academy of Social Insurance. An earlier version of this column originally appeared in the Milwaukee Journal Sentinel. You can read diverse opinions from our USA TODAY columnists and other writers on the Opinion front page, on X, formerly Twitter, @usatodayopinion and in our Opinion newsletter. This article originally appeared on Milwaukee Journal Sentinel: Social Security benefits cuts will cost you. Here's how much | Opinion
USA Today
17-04-2025
- Business
- USA Today
BlackRock CEO Larry Fink says to look Down Under to reform Social Security
BlackRock CEO Larry Fink says to look Down Under to reform Social Security Show Caption Hide Caption Elon Musk claims there are 150-year-olds on Social Security Tesla and SpaceX CEO Elon Musk incorrectly claims there are 150-year-olds on Social Security. Fox - 5 DC For anyone who depends on Social Security to pay bills (and millions of Americans do), a 21% cut in benefits may be devastating. Even if someone works for years to maximize their monthly benefit, a reduction is sure to impact their everyday budget. Yet, cuts are on the horizon if Congress can't agree on a plan to shore up the Old-Age, Survivors, and Disability Insurance (OASDI) program before the trust runs dry. Take a page from Australia's book Larry Fink, CEO of global investment company BlackRock, believes Social Security could be reformed by switching to retirement savings similar to Australians' superannuation system (also called the "super"). In Australia, employers contribute a percentage of each employee's salary into a superannuation fund, a long-term investment (like Social Security) designed to save for retirement. Thanks to the superannuation guarantee, employers must contribute a minimum amount to their employees' accounts. That percentage currently sits at 11.5%. Employees can also contribute to their super up to a limit. Superannuation funds offer various investment options, and employees can choose where their contributions go. While superannuation contributions and earnings are subject to tax, the rate is typically lower than other income tax rates. Like Social Security, savings built up in a super fund are generally not tapped until an employee retires. Fink's perspective Fink claims that Social Security is an inferior retirement savings model compared to the superannuation program. Still, he believes Social Security has become so politicized that no one wants to discuss changes. He contends that politicians are too afraid to broach the subject. Private companies invest in and manage millions of Australian superannuation accounts, while the U.S. Department of Treasury manages the Social Security trust fund. Given that BlackRock manages the world's largest portfolio of assets (worth a cool $11.5 trillion in 2024), Fink's admiration for the Australian system may be based on the belief that private investment firms are better positioned to manage and grow retirement savings. Benefits of the Australian system Australia's superannuation system provides some pretty sweet (and unusual) benefits, including: Lower taxes: Contributions to super funds are taxed at 15%, well below the maximum of 47% on regular income. Discounted insurance rates: Thanks to group discounts, some super funds offer cheaper insurance premiums. Low-income workers get a boost: The Australian government adds extra funds to the accounts of low-income individuals, giving their super accounts a chance to earn more as they grow. Free professional advice: Many funds offer free advice to contributors to help manage their retirement savings. Discounts and rewards: Funds often provide investors with exclusive deals and discounts. Tax-free in retirement: Once a person reaches 60, they have tax-free access to their superannuation. Social Security has been a lifeline to Americans since 1935, and a recent Navigator Research report found that 85% of Americans oppose cuts to the program they've spent years paying into. Whether changes designed to strengthen the program include elements of the Australian system or not, most people just want to know that Social Security will be there when they need it. Dana George has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY. The $ 22,924 Social Security bonus most retirees completely overlook Offer from the Motley Fool: If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $22,924 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Simply click here to discover how to learn more about these strategies. View the "Social Security secrets" »
Yahoo
08-04-2025
- Business
- Yahoo
BlackRock CEO Says How He Would Reform Social Security
For anyone who depends on Social Security to pay bills (and millions of Americans do), a 21% cut in benefits may be devastating. Even if someone works for years to maximize their monthly benefit, a reduction is sure to impact their everyday budget. Yet, cuts are on the horizon if Congress can't agree on a plan to shore up the Old-Age, Survivors, and Disability Insurance (OASDI) program before the trust runs dry. Larry Fink, CEO of global investment company BlackRock, believes Social Security could be reformed by switching to retirement savings similar to Australians' superannuation system (also called the "super"). In Australia, employers contribute a percentage of each employee's salary into a superannuation fund, a long-term investment (like Social Security) designed to save for retirement. Thanks to the superannuation guarantee, employers must contribute a minimum amount to their employees' accounts. That percentage currently sits at 11.5%. Employees can also contribute to their super up to a limit. Superannuation funds offer various investment options, and employees can choose where their contributions go. While superannuation contributions and earnings are subject to tax, the rate is typically lower than other income tax rates. Like Social Security, savings built up in a super fund are generally not tapped until an employee retires. Fink claims that Social Security is an inferior retirement savings model compared to the superannuation program. Still, he believes Social Security has become so politicized that no one wants to discuss changes. He contends that politicians are too afraid to broach the subject. Private companies invest in and manage millions of Australian superannuation accounts, while the U.S. Department of Treasury manages the Social Security trust fund. Given that BlackRock manages the world's largest portfolio of assets (worth a cool $11.5 trillion in 2024), Fink's admiration for the Australian system may be based on the belief that private investment firms are better positioned to manage and grow retirement savings. Australia's superannuation system provides some pretty sweet (and unusual) benefits, including: Lower taxes: Contributions to super funds are taxed at 15%, well below the maximum of 47% on regular income. Discounted insurance rates: Thanks to group discounts, some super funds offer cheaper insurance premiums. Low-income workers get a boost: The Australian government adds extra funds to the accounts of low-income individuals, giving their super accounts a chance to earn more as they grow. Free professional advice: Many funds offer free advice to contributors to help manage their retirement savings. Discounts and rewards: Funds often provide investors with exclusive deals and discounts. Tax-free in retirement: Once a person reaches 60, they have tax-free access to their superannuation. Social Security has been a lifeline to Americans since 1935, and a recent Navigator Research report found that 85% of Americans oppose cuts to the program they've spent years paying into. Whether changes designed to strengthen the program include elements of the Australian system or not, most people just want to know that Social Security will be there when they need it. If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known could help ensure a boost in your retirement income. One easy trick could pay you as much as $22,924 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these George has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. BlackRock CEO Says How He Would Reform Social Security was originally published by The Motley Fool Sign in to access your portfolio
