Latest news with #TheSocialSecurityAdministration
Miami Herald
19-05-2025
- Business
- Miami Herald
Scott Galloway sends major message on Medicare, Social Security
As they prepare for retirement, American workers frequently wrestle with concerns about their financial stability in later years. Many worry about the rising costs of health care and the long-term viability of the federal Social Security program. Although Medicare becomes available to Americans at age 65, it does not cover all medical expenses, requiring retirees to budget for additional costs. Author and New York University professor Scott Galloway shares his perspective on the significance of Medicare and Social Security in shaping Americans' retirement security. Don't miss the move: Subscribe to TheStreet's free daily newsletter The Social Security Administration (SSA) explains that Social Security functions as a social insurance program that provides retirees with lifetime benefits, adjusted for inflation. And Medicare is also a major source of stability for Americans preparing for retirement. Traditional Medicare includes hospital insurance through Part A, though recipients must cover deductibles. Part B provides coverage for outpatient services and preventive care, with a monthly premium of $185 in 2025. Seniors also have the option of Medicare Advantage, or Part C, which is managed by private insurers. This plan generally offers the same benefits as Parts A and B, plus additional coverage. Medicare Part D is designed to help with prescription medication costs, which can vary widely depending on an individual's health care requirements. Related: Shark Tank's Kevin O'Leary makes bold prediction on U.S. economy However, Galloway argues that there is a fundamental flaw in the way some of these benefits are allocated. He believes that some current recipients of Social Security may not actually require financial assistance but continue to receive it. In fact, Galloway notes that senior citizens today are the wealthiest generation in history. Galloway, who says he has an annual income of $16 million, believes that individuals with significant wealth, including himself, should not receive Social Security benefits. He advocates for the implementation of means-testing to determine eligibility for monthly payments. "Somewhere between 10% and 30% of people who get Social Security right now should not receive it because they don't need it," he said. "The wealthiest generation in the history of this planet are senior citizens." Means-testing is a process used to assess whether a person qualifies for financial assistance based on their income and assets. This evaluation aims to ensure that Social Security payments are directed toward those who need them most. More on retirement: Dave Ramsey sends strong message to Americans on 401(k)sShark Tank's Kevin O'Leary warns Americans on Social SecurityScott Galloway sounds the alarm on Social Security, boomers Galloway highlights the fact that most recipients withdraw two to three times the amount they contribute through taxes. He argues that the wealthiest individuals should not automatically receive benefits solely because they have paid into the system. He views Social Security taxes as a means of funding benefits and believes the money should be directed toward people who truly require financial assistance. Related: Scott Galloway makes major prediction on world economy; 401(k) impact seen The Medicare tax rate stands at 2.9%, with the cost divided between employers and employees. Unlike Social Security, Medicare taxes have no income cap, meaning higher earners face an increased tax rate. Scott Galloway highlights how Medicare's tax structure differs, emphasizing that it continues to be applied across all income levels. Many states also impose payroll taxes, though these tend to be relatively low and have defined limits. No matter the income bracket, payroll taxes remain unavoidable - even affecting wages funneled into a 401(k). For self-employed individuals, the burden is even greater, as they must shoulder both the employer and employee portions, totaling over 15% on the first $160,000 of earnings. On retirement savings in general, U.S. workers acknowledge the value of tools such as 401(k) plans and IRAs, even when economic conditions present challenges. Contributing to an employer-sponsored 401(k) plan is an effective way to build retirement savings, particularly when employers provide matching contributions. With automatic deductions taken directly from wages, this method promotes consistent saving without requiring additional effort, offering both simplicity and efficiency. In 2025, the maximum contribution limit for 401(k) plans has risen to $23,500, an increase from $23,000 in 2024. Additionally, workers aged 60 to 63 can now make larger catch-up contributions of up to $11,250, compared to the $7,500 limit for those aged 50 to 59. Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
14-05-2025
- Business
- Yahoo
Spousal Social Security Benefits: 3 Things Married Couples Must Know in Retirement
Spouses with no work history can collect Social Security benefits based on the work record of their retired partner. Spouses that claim Social Security at full retirement age will receive a benefit equal to 50% of their retired partner's primary insurance amount. Divorced spouses can collect Social Security benefits based on the work record of their ex-partner in certain situations. The $22,924 Social Security bonus most retirees completely overlook › The 2024 Social Security Survey from Nationwide Retirement Institute identified prevalent and problematic knowledge gaps on the topic of spousal benefits. 30% of surveyed adults incorrectly marked this statement as false: Social Security may offer benefits for your spouse or children. 53% of surveyed adults incorrectly marked this statement as false: If you are divorced, you may be eligible for Social Security benefits based on your ex-spouse's record. Those knowledge gaps could lead to financial mistakes. Here are three things married couples should know about spousal Social Security benefits. Social Security retirement benefits are available to retired workers and spouses, even when the spouse has no work history. Spouses can claim Social Security based on their retired partner's earnings record, so long as the following conditions are satisfied. The spouse and partner must have been married for at least one full year. The spouse must be at least age 62 or have a qualifying child in their care, meaning a child that is under age 16 or receives disability benefits. The retired worker on whose earnings record the spouse claims Social Security must themselves be receiving retirement benefits. Importantly, some spouses will be eligible for retired-worker benefits based on their own earnings record and spousal benefits based on their retired partner's earnings record. In that case, the spouse is automatically awarded the higher amount when they apply for benefits. How much benefit income a spouse receives from Social Security depends on their claim age and their retired partner's primary insurance amount (PIA). The term PIA refers to the benefit a retired worker receives if they start collecting Social Security at full retirement age (FRA), which is age 67 for anyone born in 1960 or later. At most, the spousal benefit will equal one-half of the retired worker's PIA. But spouses must claim Social Security at FRA to receive that amount. Spouses that claim Social Security earlier will receive a smaller payout, meaning less than 50% of their retired partner's PIA. The precise reduction depends on how many months early benefits start, but it would be most severe at age 62. The chart below shows the spousal benefit (as a percentage of the retired worker's PIA) for anyone born in 1960 or later. Claim Age Spousal Social Security Benefit 62 32.5% 63 35% 64 37.5% 65 41.7% 66 45.8% 67 (FRA) 50% Data source: The Social Security Administration. Note: The percentages shown above represent spousal benefits as a percentage of the retired partner's primary insurance amount. There is another important distinction between retired-worker benefits and spousal benefits. Retired workers can earn delayed retirement credits that increase their benefit amount if they start Social Security after FRA. Spouses cannot earn delayed retirement credits, so there is no advantage to claiming any later. Put differently, spouses maximize their payout by claiming Social Security at FRA. Importantly, an individual eligible for Social Security as a retired worker and a spouse cannot simultaneously collect the spousal benefit while accruing delayed retirement credits on their retired-worker benefit. When someone in that position applies for Social Security, they automatically apply for both types and are awarded the larger benefit. Divorced spouses can still collect Social Security benefits based on the work record of their ex-partner, so long as the following conditions are satisfied. The divorced spouse must be at least age 62 or have a qualifying child in their care. The divorced spouse and ex-partner must have been married for at least 10 years. The spouse must not be remarried, and they must have been divorced for at least two years. There are a few points of possible confusion. First, spouses cannot usually typically collect Social Security benefits on a partner's earnings record unless that partner is already receiving benefits themselves. But that rule does not apply to divorced spouses. Second, divorced spouses that remarry can no longer collect benefits based on their ex-partner's work record, but that rule does not work in reverse. Whether the ex-partner has remarried has no bearing on the divorced spouse's ability to collect Social Security. Third, some divorced spouses worry that claiming Social Security on the work record of their ex-partner will impact that person's benefit, or else that their ex-partner will be notified if they apply for benefits. Neither is true. The ex-partner's payout does not change, nor will they be notified if their former spouse claims Social Security on their work record. 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 Motley Fool has a disclosure policy. Spousal Social Security Benefits: 3 Things Married Couples Must Know in Retirement was originally published by The Motley Fool 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
Yahoo
14-04-2025
- Business
- Yahoo
Experiencing issues with your Social Security payments? Michigan AG seeks information
Michigan residents who may be dealing with issues regarding their Social Security now can file a form with the state to share their experience and help identify ongoing issues, Michigan Attorney General Dana Nessel announced Friday. Due to a reshaping of The Social Security Administration (SSA) by the Trump administration, recipients have reported a number of challenges, including delays in receiving earned benefits, difficulty contacting customer service, and disruptions in claim processing, according to the Michigan AG's office. 'Social Security supports millions of people across our state,' Nessel said in a news release. 'Reports of disruptions to these benefits, directly caused by the Trump administration's reckless decision to fire employees with no regard for the consequences, are unacceptable. By collecting accounts from residents, my office can track trends, identify recurring issues, and better advocate for Michigan residents who rely on these essential benefits.' Officials said they may share the information collected for future "federal" action, but will not share personal identifying information without consent. The form is on the Department of Attorney General's website. As of December 2023, 1,686,000 individuals received Social Security payments in Michigan. The Social Security Administration's Chicago regional office lists 48 Michigan sites, including: Adrian Alpena Ann Arbor Battle Creek Bay City Benton Harbor Big Rapids Cadillac Chesterfield Clawson Dearborn Detroit - Conner Detroit 7 Mile Detroit - Downtown Detroit - East Detroit - Highland Park Detroit - Northwest Detroit - Southwest Escanaba Farmington Flint - downtown Fort Gratiot Grand Rapids Grand River Holland Houghton Inkster Ironwood Jackson Kalamazoo Lansing Livonia Ludington Marquette Monroe Mount Pleasant Muskegon Flint - north Owosso Petoskey Pontiac Roseville Saginaw Sault Ste. Marie Sterling Heights Traverse City West Branch Wyandotte Jalen Williams is a trending reporter at the Detroit Free Press. Contact him at jawilliams1@ This article originally appeared on Detroit Free Press: Michigan AG's office offers place to report problems with Social Security
The Hill
09-04-2025
- Business
- The Hill
Social Security walks back cuts to phone services, announces ‘anti-fraud check'
The Social Security Administration (SSA) reiterated Tuesday its plans to walk back proposed cuts to its phone services, saying it would be implementing an 'anti-fraud check.' 'Beginning on April 14, #SocialSecurity will perform an anti-fraud check on all claims filed over the telephone and flag claims that have fraud risk indicators,' SSA posted on social platform X. Individuals that are flagged will be required to prove their identity in person in order for their Social Security claim to be processed. If no flag is detected, they can proceed online without an in-person check, the agency said. 'We will continue to conduct 100 percent ID proofing for all in-person claims. 4.5 million telephone claims a year and 70K may be flagged,' SSA added in their post. 'Telephone remains a viable option to the public,' the agency said, seemingly withdrawing its earlier push for all in-person activity. Last month, SSA announced it would no longer allow individuals to verify their identity over the phone. Instead, the agency said people would have to take steps to authenticate their claim and prove their identity online or through an in-person visit. Changes were set to go into effect March 31 and would impact more than 72 million people who rely on Social Security. Following an outcry from the public over the decision, the SSA changed course before it was set to go into place. 'We have listened to our customers, Congress, advocates, and others, and we are updating our policy to provide better customer service to the country's most vulnerable populations,' acting Social Security Commissioner Lee Dudek said, noting the phone services would be available starting in mid-April. The news came as dozens of SSA offices across the country had plans to close some time this year as part of the Department of Government Efficiency 's (DOGE) cuts to federal spending. SSA later said it was not permanently closing offices but 'from time to time,' it may 'temporarily' close offices due to 'weather, damage, or facilities issues.' DOGE argued that changes to the agency would help prevent direct deposit fraud when 'fraudsters' call the SSA and change their direct deposit number. The updated SSA policy has eased some concerns for rural communities and people who require assistance to travel to the in-person offices. The visits, however, will still be required for Retirement, Survivors or Auxiliary (Spouse of Child) benefit applications, the agency said in late March.
CBS News
08-04-2025
- Business
- CBS News
Social Security wrongly told disabled people and some seniors their benefits ended, causing alarm
The Social Security Administration last week wrongly informed some recipients of Supplemental Security Income (SSI), the federal program that provides financial assistance to disabled Americans and low-income senior citizens, that they were no longer receiving benefits. The agency's website informed some SSI recipients they are "currently not receiving payments," according to an April 7 letter from senators Elizabeth Warren of Massachusetts, Ron Wyden of Oregon and Mark Kelly of Arizona to Social Security Administration Acting Commissioner Lee Dudek. The payment history and all data about benefits for SSI recipients had also vanished, they wrote, adding that they received multiple reports from constituents about the error. "In my 50 years of work on Social Security and SSI, I have never heard of this happening before," said Nancy Altman, president of Social Security Works, an advocacy group for the program, of the SSI error. Chris Hubbard, whose 37-year-old disabled adult son relies on the program to pay for his group home, told CBS MoneyWatch she became aware of the problem on March 31, when people in a Facebook group for mothers of autistic children flagged the problem. Hubbard, who lives with her husband in Westborough, Massachusetts, said she checked her son's account and was alarmed to find a similar message, leading her to stay up through the night to keep refreshing the page. She fell asleep at 5 a.m. without seeing a change, she said. "I was continuing to be worried because the message was still on the site, saying this beneficiary doesn't receive payments," Hubbard said. The next morning, however, the correct information was on her son's page, and the money was deposited on April 1, as scheduled. But she and her husband say they received no outreach from Social Security about the problem, or an explanation of the error. They opted against calling the agency because of the long waits now often required to get someone on the phone. The Hubbards said they're worried the glitch could signal more problems with the service, pointing to the potential impact of cuts to SSA's workforce. "There's great concern about this happening again, and why did it happen in the first place?" Tom Hubbard said. The Social Security Administration told CBS MoneyWatch that the issue was limited to SSI recipients, adding, it "did not impact Social Security or Medicare only beneficiaries." A spokesperson for the agency said, "This particular issue was resolved less than twenty-four hours later. All my Social Security user logins are again able to connect and view the proper benefit information." The SSI error is concerning because it impacts "some of the most vulnerable in the nation — low-income seniors and children and adults with disabilities — and [they] face extraordinary hardship if their benefits are delayed or disrupted," the senators wrote in their letter. The SSI issue could be the result of changes happening at the Social Security Administration under Elon Musk's Department of Government Efficiency, or DOGE , Altman said. Musk has claimed that the system is rife with fraud , and alleged the program is "the biggest Ponzi scheme of all time." In recent weeks, the Social Security website has suffered from a number of outages that lasted as long as a day, according to an April 7 Washington Post report . The Social Security Administration told CBS MoneyWatch that the "brief disruptions" lasted about 20 minutes each, on average. "Before Trump, Musk and DOGE took over, there were no major crashes or glitches on SSA's website to speak of," noted Maria Freese, senior Social Security expert at the National Committee to Preserve Social Security and Medicare, an advocacy group focused on retirement issues. "Certainly there were no messages going out telling people erroneously that their benefits were discontinued." The maximum monthly SSI payment is $967 for an individual in 2025, with the program aimed at helping people with disabilities and seniors with no or little income. Most SSI recipients have income below the poverty line, according to the Roosevelt Institute. "SSI recipients experience economic precarity at high rates, and even brief disruptions to benefits could have devastating impacts for these beneficiaries," the senators wrote in their April 7 letter. "These recent reports of disruption—or threats of disruption— of Social Security benefits is deeply troubling."
