Social security is undergoing major changes, you have questions.
My recent column has attracted thousands of comments, focusing mainly on three big topics: Fear of delaying checks and customer service at the Social Security Agency, Roth’s conversion of retirement accounts that extend tax retirement and why a heartbreaking explanation for the benefits of 62-year-olds with 62 benefits.
The Trump administration has made significant and controversial changes, including massive staff and on-site office cuts that limit telephone service. and significantly increase the amount of checks monthly from the Social Security beneficiaries who receive overpayments. These changes have affected nearly 74 million retired elderly and disabled workers, from which they currently receive benefits, millions of people on the cusp of doing so.
Here is an edited sample of these 5,000+ comments and what I think of them.
I am 62 years old and about to retire and I am ready to start my social security check because I don’t have any savings. I had a social security date on June 9th. When will I receive my first payment?
Kerry Hannon: After processing an application, it usually takes at least one month or 30 days to receive your first Social Security check. In some cases it may be 45 days. The exact timing of cheque delivery depends on the processing time of the Social Security Bureau.
At its most recent operational meeting at SSA in April, an agency official reported that the field office “is working to keep pace with the timeliness of this year.” They realized that this was a good thing and if they acted, it would be controlled when you apply for benefits.
However, overall, I recommend you apply for up to four months before you want to start getting benefits.
I know that due to the hiring age bias, many people claim their social security benefits before all retirements begin. They can’t even take part-time interviews, let alone anything good. The only guaranteed income they can find is social security.
Sadly, this comment is correct. When you can’t find a new job after layoffs, involuntary retirement may be your last choice, which in turn forces you to ask for benefits early.
If possible, I am an advocate for postponing benefits until 70 years old. However, not everyone has a financial guardrail to pay for living until they exploit or have a steady income that allows them to wait for it.
You can get Social Security Retirement Benefits from the age of 62. You are entitled to full benefits only when you reach the full retirement age (FRA). For example, if you turn 62 in 2025, your income will be 30% lower than your 67-year-old retirement age.
Retirement points will be earned if FRA returns are delayed until age 70. When you hit 70 times when the points stop accumulating, it increases by about 8% per year.
As for your view of age bias – ageism is real. For many employers, according to the analysis of Transamerica Retirement Research Center, 62 are job cutoffs, with a hiring deadline of 58.
However, according to a new survey released by the Federal Reserve Bank of New York, nearly half of workers expect to be over 62 years old. About one-third of people expect to be over 67 years old.
According to the nonpartisan Employee Welfare Institute (EBRI), most retirees (one in 5) report under the age of 65, with a median retirement age of 62. A nearly tenth of retirement age. Seven out of ten, indicating that the reason is something they cannot control.
I retired at 60, but I started Social Security since 70. Between these two points, I did an IRA for Ross conversion. I am in my 70s now, and all my income is tax-free and I don't need a minimum allocation every year. My retired friends started social security at the age of 62 and were all working hard to make ends meet. Some people have to find part-time jobs. I have no financial concerns.
Minimizing future taxes in retirement is a benefit that many people don’t consider retirement decisions.
learn more: Do you pay taxes on Social Security?
If you are concerned about higher tax rates in the future, the Roth conversion may be a good solution for some.
The conversion is when you transfer assets from a traditional IRA or 401(k) to a Roth IRA. You can pay tax on the funds you move, but once your money is invested in the Roth IRA, it increases the tax and can be tax-free when you retire.
For most people, it’s best to solve this problem with a series of smaller annual conversions to make your instant tax bill manageable. Remember that the Rose conversion is permanent. If you wish to convert to the 2025 tax year, it must be done by December 31.
Any questions about retirement? Personal finance? Is there anything related to career? Click here to drop Kerry Hannon's notes.
Now, let's go to your comments and will cut measures to slam the Social Security Agency's customer service. All of these are. This is a minority.
Ai, who would have thought Eliminate telephone service At the same time, closing on-site offices, plus additional verification steps, may make it difficult for older people to obtain social security benefits? The commotion made them retreat.
And this comment:
There are so many ideas for any agent who deals with the public over the phone - crazy. If you have to deal with an SSA or IRS, you know how long it takes to wait. Sometimes, you can’t even get through. They need more staff, not fewer.
Another one:
Where I live, the closest social security office is more than four hours’ drive away. Better customer service is needed, especially in remote areas. Some people need good telephone service, but improving online services will benefit most people.
The Trump administration's actions in the SSA have scared older people who drowned 800 people in April in the same period a year ago to get a 25% increase. There are already service outages and longer waiting times.
This situation is still terrible despite support from the Social Security Agency's plans to cut telephone services due to strong opposition.
“Measures have been taken to cancel 7,000 jobs in the SSA, with additional layoffs and cuts reportedly planned,” Kathleen Romig, director of Social Security and Disability Policy for Left-leaning Budget and Policy Priorities, told Yahoo Finance. “Staff cuts so quickly will inevitably harm Social Security applicants and beneficiaries, forcing them to wait for longer services.”
What should the elderly expect to move forward?
The experts I spoke to were not optimistic about the future.
“While Congress can technically guide SSA on how to spend some of its executive budget, including staffing levels, to offset what happened due to Doge’s decision, it is unlikely,” said Jason Fichtner, executive director of the Retirement Income Institute for Lifetime Income, which has held multiple positions in Social Security Management.
He added: “As SSA employees are decreasing in the presence of agencies already running at insufficient support levels and the need for modern computer systems, there may be ongoing service delays and failures.”
Kerry Hannon is a senior columnist at Yahoo Finance. She is a professional and retirement strategist and the author of 14 books, including the upcoming “Retirement Bites: X Gen X’s Guide to Securing Your Financial Future,“ “In control over 50: How to succeed in the new world of work” and “never be too old to get rich”. Follow her Brusky.
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