The Social Security Administration May be Failing in their Role

The Social Security Administration May be Failing in their Role

There is a troubling report that revealed how most people could lose thousands of dollars in costs due to limited information about the benefits associated with Social Security. There are some negative consequences associated with cost-cutting, despite the fact that it might be a great idea.

The Social Security Administration (SSA) is a very important agency considering the services it offers to survivors, disabled people, and retirees, but its performance in the recent years has not been very impressive. The agency has undergone budget cuts in the recent years and this continues to affect its performance.

A recent study conducted by the Government Accountability Office (GAO) revealed that most retirees benefit less from the available Social Security Programs due to the fact that they have no access to critical information.

The State of Social Security

It is interesting to know that over $955 million was disbursed to approximately 62 million Americans in form of benefits in the year 2017 alone. A significant amount of that went to retirement benefits, and this is a clear indication that this is a massive program. A large number of Americans that earn an average income depend on social security programs. According to the Social Security Administration, the major of the elderly people including both the married and the unmarried ones depend on social security.

Therefore, it is important to ensure that they get the necessary information for them to fully benefit from the program. For example, elderly beneficiaries that are unmarried get more than 90% of their income from the Social Security indicating that it is their major source of income. The amount of money that one pays into the Social Security program determines what they will get in terms of benefits. The total Social Security Tax is currently at 12.4% of a worker’s wages with half the tax being paid by the employers.

However, individuals that are self-employed have to pay the entire amount as they do not have the employer portion. Therefore, one is entitled to an average of $16,500 per year in form of retirement benefits. However, individuals that retire at the set retirement age and have above average earnings can get double the amount.

 What is the Problem?

The reason why members of public fail to get critical information is that the recent budget cuts limit the capacity of the SSA to effectively serve the public. To begin with, over 60 field officers have in the recent past been retrenched limiting the agency’s capacity to help the public. For people seeking information, they have to wait longer online, on the phone, or in person as the representatives are only available for few hours.

In order cope with the issue of budget cuts, the agency has introduced more online services and has put in place measures to increase its online presence. In order to make the right decisions concerning Social Security, one has to get the right information about the available options. As mentioned earlier, most retirees depend on Social Security, hence the need for them to fully understand the available options.

It is quite unfortunate that critical information is not given to retirees and pre-retirees, as reported in the 2016 GAO report. For instance, some retirees are not aware that they can collect bigger checks when they delay their collections to age 70. Moreover, beneficiaries should be briefed on how the calculation of their benefits is done, but SSA sometimes fails to do this important briefing.

What’s Next?

It is important for you to take the initiative of getting critical information by consulting SSA in order to fully benefit from the Social Security programs. It is advisable to personally consult SSA representatives when you are not sure about something.

 

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