Latest news with #Peak65
Yahoo
06-05-2025
- Business
- Yahoo
DOGE's Social Security changes are confusing – and put benefits at risk
Just as Americans turn 65 in record levels, DOGE unleashes service cuts that could cause delays in benefit payments. With so much confusion resulting from changes to the Social Security Administration's (SSA) operations, people need help in sorting myth from fact on the potential impact to their benefits. The short answer is that it is highly unlikely benefits will be reduced for current recipients because of operational changes at SSA. However, there could be delays for those yet to apply for benefits depending on how new SSA staffing and service reductions play out. The announced operational changes are causing a sharp increase in calls to SSA's 800 number and field office visits by people worried about their benefits. And the growing level of confusion is compounded by the fact the United States is experiencing the peak of Peak 65 – the largest surge of Americans turning 65 this year than at any time in our country's history. This new uncertainty about our retirement assistance system began when the Department of Government Efficiency (DOGE) put in motion plans to reduce Social Security staff by 7,000 workers or 12 percent of the workforce, while also closing or shrinking dozens of SSA offices around the country. Exodus of Social Security office employees troubling Many SSA employees have already left, taking an offer for early retirement or deferred resignation, and there have been a series of service disruptions, with long waiting times for people trying to get help from SSA in person at field offices, on the phone, and with the SSA website experiencing periodic outages and other problems. As an example, the SSA recently acknowledged it incorrectly posted on its website that disabled Americans and low-income senior citizens were no longer receiving benefits. Thankfully, that posting has since been corrected and those benefits are continuing. Protesters gather outside the Port Orange district office of Congressman Cory Mills on April 30, 2025. Demonstrators expressed outrage about a range of issues, including Mills' support of President Donald Trump and their perceived threats of cuts to Social Security, Medicare and veterans' services. As a former chief economist and deputy commissioner for SSA, I believe in its mission and the vital safety-net of retirement security it has provided to millions of Americans over the past 90 years. With Social Security benefits, pensions and annuities being the only form of protected retirement income for people, any doubts about those benefits being paid out in full and on time can cause great stress especially to those older Americans who rely on Social Security as their only income in retirement. Setting aside the propriety of recent policy changes, I believe what is happening is further proof that Congress should be taking steps to stabilize SSA and the vital programs it administers. What you should know until Congress acts ∎ Those who are not yet receiving benefits could experience a delay in approval and the start of benefits if there is a lag in getting approval for receiving them. Let's say you apply for benefits and request SSA to start paying benefits this month, but the first payment isn't made for 60 days because of processing delays. That means you have lost two months of benefits, and those front-end benefits are not reimbursable. However, those already getting benefits can be reimbursed for any payment delays caused by service delivery interruptions. With delays in SSA services resulting from the workforce reductions, anyone who wants to begin receiving retirement benefits is advised to start working with SSA four months in advance of when you want the payments to begin. And regardless of when you want to claim retirement benefits, you should sign up for Medicare through SSA when you turn 65. ∎ The only way benefits can change is through legislation approved by Congress and signed by the President. Neither Congress or the President can act unilaterally to change benefits or how SSA's Trust Fund assets are invested. ∎ The SSA Trust Fund is currently projected to be depleted by 2033 and if nothing is done to avoid that, benefits for current recipients could be reduced by approximately 20 percent. ∎ While Congress will have to address Social Security's financial shortfall before the trust fund is depleted in the early 2030's by either raising payroll taxes, borrowing from general revenues, reducing benefits, or some combination of those three actions, it is politically unlikely that anyone at least 50 years old will experience a benefit reduction. The concern is they would not have sufficient time to make up for the savings shortfall. ∎ One policy change that could affect current beneficiaries is a reduction in the cost-of-living allowance, which would limit the upward adjustment in benefits to counter inflation in future years. Benefits would still increase with inflation, not be reduced, but grow at a slower rate. ∎ If you can afford to wait until you are 70 years old to claim Social Security at its maximum monthly benefit level, you should. There is roughly an 8 percent annual increase in monthly benefit amounts for each year delayed in claiming between 62 and 70. Even if benefits are cut, people will still have a higher benefit base by delaying claiming. While Congress can technically direct the SSA on how to spend some of its administrative budget, including staffing levels, to counteract what has happened because of DOGE's decisions, that is unlikely to occur. With SSA staff being reduced while the agency was already operating at insufficient support levels, and computer systems in need of modernization, continued service delays and breakdowns are likely. When the time comes to apply for benefits, it is important to plan ahead and apply up to four months before you want to start receiving benefits. And everyone should be pressing Congress and the President to take action to strengthen the Social Security system and eliminate unnecessary doubt and confusion at a time when more people than ever are approaching retirement. Jason Fichtner Jason Fichtner is Executive Director of the Retirement Income Institute at the Alliance for Lifetime Income, and served in several positions at the Social Security Administration, including Deputy Commissioner and Chief Economist. This article originally appeared on Palm Beach Post: Will I get my Social Security benefit? Here's what to know | Opinion
Yahoo
29-03-2025
- Business
- Yahoo
800K Oklahomans stressing over Social Security — as insiders warn of ‘system collapse' within 90 days
About 800,000 Oklahomans depend on Social Security — and they're wondering how proposed Security Social cuts could impact their retirement. 'Oklahomans want to hear and make sure that Social Security is protected and saved, not only for them, but their children, grandchildren,' Sean Voskuhl, AARP Oklahoma state director, told Oklahoma's News 4. 'More than 22% of Oklahomans rely on Social Security as their primary source of retirement income.' I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) Americans with upside-down car loans owe more money than ever before — and drivers can't keep up. Here are 3 ways to cut your monthly costs ASAP Now under Trump-appointed leadership, the Social Security Administration (SSA) is eliminating 7,000 jobs, significantly reducing its workforce, while closing several SSA offices across the country. And that leaves Oklahomans with questions. 'Is Social Security going to be fully funded? Are people going to get their payments on time? And will there be people at the Social Security Administration offices to answer questions if people have them?' said Voskuhl. This comes at a time when a record number of baby boomers are reaching retirement age — a phenomenon referred to as Peak 65. And 2025 is the 'peak' of Peak 65, with a record 4.18 million Americans reaching the traditional retirement age of 65, according to a research report by the Alliance for Lifetime Income's Retirement Income Institute. 'Unlike older retired baby boomers, the majority of Peak 65'ers don't have pensions, which used to help fill that gap left by Social Security,' according to the report's author, Jason Fichtner, executive director of the institute and a former chief economist at the SSA. That means cuts to the Social Security workforce are coming at a time when demand for its services are at an all-time high. Former Social Security Commissioner Martin O'Malley told that recent actions by Elon Musk's Department of Government Efficiency (DOGE) are putting the benefit checks of more than 72.5 million Americans at risk. 'Ultimately, you're going to see the system collapse and an interruption of benefits,' O'Malley said. 'I believe you will see that within the next 30 to 90 days.' Delays could be disastrous for many Americans. In one study, 42% of Americans aged 65-plus said they wouldn't be able to afford basic necessities like food without their monthly check. For Americans about to retire, staffing cuts and office closures could lead to delays in processing their claims. At the same time, DOGE — which is helmed by unelected billionaire Elon Musk — is closing 47 local Social Security offices in an effort to save money. Musk has referred to Social Security as 'the biggest Ponzi scheme of all time.' In Oklahoma, a total of 15 federal offices are on the chopping block, including the SSA office in Lawton. These closures will save an estimated $3.7 million, according to DOGE. Read more: Are you rich enough to join the top 1%? Here's the net worth you need to rank among America's wealthiest — plus 2 ways to build that first-class portfolio From the get-go, Social Security was never meant to be the sole source of a person's retirement income; rather, it was meant to supplement personal savings and pensions. But an AARP survey found that 20% of Americans aged 50-plus don't have any retirement savings. The earlier you start saving, the better — but it's never too late to start. And that may be more important than ever, with 'the imposition of additional tariffs on imports from China, substantial policy uncertainty, sizable pullback in consumer sentiment and spending since the beginning of the year, elevated geopolitical tensions and federal spending reduction initiatives,' according to The Conference Board's forecast for the U.S. economy. For those who don't have a long-term financial plan, it may be worth sitting down with a financial adviser to create a strategy going forward (or to revisit your existing financial plan). That could include rebalancing into a more diversified mix of investments to include different industries, countries and risk profiles, as well as alternative investments such as real estate or commodities. It could also include mitigating some risk through dividends, in which companies pay distributions to shareholders based on profitability. Whether you're saving for the future or close to retirement, you may want to explore your options for bringing in some extra cash, such as taking on a side gig. It may even be worthwhile to reevaluate your retirement plans. Maybe that means working a few more years before retiring, downsizing your home or moving to a less expensive neighborhood or city. Younger investors have more time to ride out a potential downturn in the economy; those closer to retirement may want to talk to their financial adviser about their options. Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Protect your retirement savings with these 5 essential money moves — most of which you can complete in just minutes This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Sign in to access your portfolio
