Recent changes in the funding and operation of the Social Security system have raised alarms across senior populations in America.It is estimated that two-thirds of people aged 65 and older depend on Social Security for more than half their retirement income with over one-quarter relying on Social Security as their sole source of income.Staff cuts, local office closures and changes to applicant verification systems have been announced that will impact millions of seniors nationwide.News reports on how these changes will affect the lives of Social Security recipients vary greatly and only add to the confusion, causing many older Americans to go into panic mode.
Seniors are finding they have more questions than answers about changes in Social Security with most feeling confused and frustrated because the situation is so fluid, changing almost daily.Already, people trying to get information about their Social Security benefits are finding it to be a burdensome task with seniors waiting hours and even days to speak with someone who can help answer their questions or solve their problems.With over 10,000 Americans turning 65 each day and more every day than the day before, getting assistance with accessing benefits may become even more difficult in the days ahead.This is the bad news.The good news is that the Social Security system is still operational and while changes are possible, the system remains solvent.
For most seniors who are at or near retirement age, most will see little if any imminent changes to their benefits.One thing scheduled to change is the process of applicant identification when applying for benefits.To eliminate fraud, the Social Security Administration is working to transition from a telephone or online verification system to in-person identity validation via a visit to your local Social Security office.
For seniors with physical limitations or those living in rural areas, the in-person verification changes can present significant challenges.Another change that is coming is the age at which earned benefits can be collected.Many seniors erroneously assume that 65 is full retirement age.While this was true in the past, legislation was introduced and passed that increases the retirement age to 66 years and 10 months with the threshold retirement age being elevated to account for people living longer lives.
Because the benefit amount you receive will vary upon the age at which you apply, it is wise to consult with your banker, accountant or financial advisor prior to applying for benefits to determine which retirement age options best meet your lifestyle needs.Each year, Social Security checks are adjusted to account for inflation, the reason being to protect seniors from having their purchasing power eroded.While this increase is in theory a benefit to seniors, the estimated Social Security cost of living increase in 2025 is only 2.5%, the lowest increase since 2021.Older Americans already struggling to keep pace with inflation will find the challenge even more daunting in coming years.Changes to the Social Security system are inevitable and they are already occurring.
For most seniors, the best way to maximize their Social Security payments is to delay claiming them, if possible, until the age of 70.At that age, benefits are boosted by 25%.You can still collect benefits at age 62, but your monthly check will be reduced for each month before your full retirement age of 66 years and 10 months.Deciding when to take your Social Security benefits depends on your individual circumstances and needs.
Facts to consider in the decision are your financial situation, health, and life expectancy.The best approach is to determine your break-even point, which is the age at which the cumulative amount of money you get if you file later in life equals the cumulative amount of money you would receive if you filed for benefits earlier.Always consult with a financial professional before making retirement decisions, and especially regarding accessing your Social Security and Medicare benefits.Making the decision that is right for you is the best way to ensure a financially secure retirement life.
Publisher: Senior Caregivers ( Read More )
