Oct 28 2023

The Future of Social Security

In the annual Trustees Report, projections are made under three alternative sets of economic, demographic, and programmatic assumptions. Under one of these sets (labeled “Low Cost”) in the 2023 Trustees Report, the combined trust funds would be temporarily depleted before returning to positive levels by the end of the 75 year projection period. Under the other two sets (the “Intermediate” and “High Cost”) in the 2023 Trustees Report, the combined trust fund reserves become depleted within the next 15 years. The intermediate assumptions reflect the Trustees’ best estimate of future experience.

Some benefits could be paid even if the trust fund reserves are depleted. For example, under the intermediate assumptions, annual income to the trust funds is projected to equal about eighty percent of program cost once the trust fund reserves become depleted. If no legislation has been enacted to restore long-term solvency by that time, about three-quarters of scheduled benefits could be paid in each year thereafter.

The Trustees believe that extensive public discussion and analysis of the long-range financing problems of the Social Security program are essential in developing broad support for changes to restore the long-range balance of the program.

For more information, go to: ssa.gov/OACT/ProgData/fundFAQ.html

Teaching Suggestions:

Ask students if the Social Security and Medicare programs will continue to face significant financing issues. How can these issues be addressed now to mitigate future problems?
Under current law, how are the Social Security and Medicare programs financed?
Research project: Ask students to research how large are the assets reserves currently in the trust funds.

Discussion Questions:

What are the annual income and costs for the Social Security trust funds?
Currently, do the Social Security trust funds have an annual surplus or deficit?
How does 2023 outlook for Social Security compare to last year’s outlook?

Oct 14 2023

Planning for Retirement

Do you have a retirement plan? It is never too early or too late to plan for your future. Even if you don’t have a plan in place, taking small steps now can make a big difference for your future retirement. Benefits.gov can help you plan and find retirement benefits. This article will share tips for savings and benefits that may be able to help you through retirement.

What should I do first?

Start saving money. If your employer offers a retirement savings plan, like a 401(k), sign up and contribute what you can. If your employer does not offer a retirement plan, you can put money in an Individual Retirement Arrangement (IRA).

What are Social Security retirement benefits?

The U.S. Social Security Administration (SSA) manages Social Security retirement benefits. The monthly payments are based on how much you earned when you worked. Social Security payments can help in retirement, but it may not be enough to cover all your expenses. SSA’s retirement estimator tool can estimate how much you will get in benefits at different ages.

Am I eligible for Social Security retirement benefits?

When you work and pay Social Security taxes, you earn credits for Social Security benefits. The number of credits you need to get retirement benefits is based on when you were born. If you were born in 1929 or later, you need 40 credits. Usually, this is 10 years of work. If you never worked, you may be able to get spouse’s retirement benefits if you are at least 62 and your spouse gets retirement or disability benefits.

When should I retire?

Choosing when to retire is up to you and will depend on your financial situation. You will receive less in your Social Security benefits if you retire before full retirement age. Find your full retirement age in the retirement age chart.

Are other benefits available?

Supplemental Security Income (SSI) helps people with little or no income and who are 65 or older, blind, or have a disability. SSI benefits are paid monthly. The amount you get is based on your income, living arrangements, and other factors

You may be eligible for benefits from the Federal Employees Retirement System (FERS) if you are a federal employee.

To find out more about retirement benefits you may be eligible for check out the Benefit Finder.

For more information, go to: Planning for Retirement | Benefits.gov

Teaching Suggestions:

Ask students to debate the issue–“It is never too early or too late to plan for your future”.
Ask students to outline steps they can take now to secure their retirement?
Should you take Social Security benefits before your full retirement? Why or why not?

Discussion Questions:

How can taking small steps now make a big difference for your future retirement?
What steps can you take to save your retirement if your employer does not offer a retirement plan?
Who is eligible for Social Security benefits?

Feb 4 2023

How to Spot a Government Imposter Scam

Scammers are pretending to be government employees. They may threaten you and may demand immediate payment to avoid arrest or other legal action. These criminals continue to evolve and find new ways to steal your money and personal information. Do not fall for it! We want you to know how you and your loved ones can avoid becoming victims!

Be Alert

If you owe money to Social Security, you’ll receive a letter by mail with payment options and appeal rights. They only accept payments electronically through Pay.gov, Online Bill Pay, or by check or money order through its offices. The SSA will never:

Threaten you with arrest or legal action because you don’t agree to pay money immediately.
Suspend your Social Security number.
Promise a benefit increase in exchange for money.
Ask you to send gift cards, prepaid debit cards, wire transfers, Internet currency, cryptocurrency, or cash through the U.S. mail.

Know What to Look for

The caller or sender says there is a problem with your Social Security number or account.
Any call, text, or email asking you to pay a fine or debt with retail gift cards, wire transfers, pre-paid debit cards, internet currency, or by mailing cash.
Scammers pretend they are from Social Security or another government agency. Caller ID, texts, or documents sent by email may look official, but they are not.
Callers threaten you with arrest or other legal action.
Internet scammers may use “phishing” schemes to trick a recipient into revealing personal information by clicking on malicious links or attachments.

For more information, click here.

Teaching Suggestions:

Ask students if they or their families have received calls from imposters? If so, what was their response and how did they handle the situation?
Ask students to make a list of schemes scammers use to trick people into revealing personal information?

Discussion Questions:

What should you do if you receive a suspicious call, text, or an email from an imposter?
What can local, state, or federal governments do to minimize these scams and protect people?

Sep 10 2022

The Future of Social Security

In June 2022, the Social Security Board of Trustees released its annual report on the financial status of the Social Security Trust Funds. The combined asset reserves of the Old-Age and Survivors Insurance and Disability Insurance (OASI and DI) Trust Funds are projected to become depleted in 2035, one year later than projected last year, with 80 percent of benefits payable at that time.

The OASI Trust Fund is projected to become depleted in 2034, one year later than last year’s estimate, with 77 percent of benefits payable at that time. The DI Trust Fund asset reserves are not projected to become depleted during the 75-year projection period.

In the 2022 Annual Report to Congress, the Trustees announced:

The asset reserves of the combined OASI and DI Trust Funds declined by $56 billion in 2021 to a total of $2.852 trillion.
The total annual cost of the program is projected to exceed total annual income in 2022 and remain higher throughout the 75-year projection period.

“It is important to strengthen Social Security for future generations. The Trustees recommend that lawmakers address the projected trust fund shortfalls in a timely way in order to phase in necessary changes gradually,” said Kilolo Kijakazi, Acting Commissioner of Social Security. “Social Security will continue to be a vital part of the lives of 66 million beneficiaries and 182 million workers and their families during 2022.”

Other highlights of the Trustees Report include:

Social Security paid benefits of $1.133 trillion in calendar year 2021. There were about 65 million beneficiaries at the end of the calendar year.
During 2021, an estimated 179 million people had earnings covered by Social Security and paid payroll taxes.
The cost of $6.5 billion to administer the Social Security program in 2021 was a very low 0.6 percent of total expenditures.
The combined trust fund asset reserves earned interest at an effective annual rate of 2.5 percent in 2021.

For more information, click here.

Teaching Suggestions

Ask students if they or their family and friends are concerned about the future of Social Security? If so, what are their concerns?
Ask students to make a list of documents they will need to establish their social Security account.

Discussion Questions

What might be some reasons for the asset reserves to decline by $56 billion in 2021?
Do you agree that Social Security will continue to be a vital part of the lives of 66 million beneficiaries and 182 million workers and their families during 2022? Why or why not?
What percent of individuals age 65 and older would live in poverty without Social Security benefits?
Would it be better for you to start getting benefits early with a smaller amount for more years, or wait for a larger monthly payment over a shorter time period?

Apr 9 2022

Lost Your Social Security Card?

Consider whether you really need to get a replacement card. Knowing your number is what’s important, after all. You’ll rarely need the card itself — perhaps only when you get a new job and have to show it to your employer. If you really must replace your card, go to www.socialsecurity.gov/ssnumber before visiting your local Social Security office.

The first step is to learn what documents you need. The Social Security Administration requires a U.S. driver’s license, a state issued non-driver identification card, or a U.S. passport to prove your identity. Sometimes you may also need to prove your current U.S. citizenship or lawful noncitizen status with a birth certificate or passport.

All documents must be either originals or copies certified by the issuing agency. The Social Security office won’t accept photocopies or notarized copies of documents. They also can’t accept a receipt showing you applied for the document.

Once you’re clear on what documents you’ll need, the second step is to print and fill out the Application for a Social Security Card. Finally, the third step is to bring or mail your application and original documents to a Social Security office. Then, the online process will take you to a screen where you can find the address of your local office.

In some areas, you can request a replacement Social Security card using your online my Social Security account if you meet certain requirements. Simply access your account and follow the instructions to replace your Social Security card. It’s safe, convenient and secure.

You can replace your Social Security card for free if it’s lost or stolen. Avoid service providers who charge you a fee to get your replacement card. You’re limited to three replacement cards in a year, and 10 during your lifetime. Legal name changes and other exceptions don’t count toward these limits. Changes in immigration status that require card updates may not count toward these limits. Also, you aren’t affected by these limits if you can prove you need the card to prevent a significant hardship.

The Social Security office will mail your card as soon as all of your information has been verified. Your replacement card will have the same name and number as your previous card.

For more information, go to:

Teaching Suggestions

Ask students if anyone has lost his/her Social Security card. If so, did they replace it? Why or why not?
Under what circumstances should you replace your lost Social Security card? Explain.

Discussion Questions

What steps must be taken to replace a Social Security card?
Why must all documents be original to be submitted to Social Security?

Feb 12 2022

Social Security Benefits Increase in 2022

Social Security and Supplemental Security Income (SSI) benefits for approximately 70 million Americans will increase 5.9 percent in 2022. The 5.9 percent cost-of-living adjustment (COLA) will begin with benefits payable to more than 64 million Social Security beneficiaries in January 2022. Increased payments to approximately 8 million SSI beneficiaries began on December 30, 2021. (Note: some people receive both Social Security and SSI benefits). The Social Security Act ties the annual COLA to the increase in the Consumer Price Index as determined by the Department of Labor’s Bureau of Labor Statistics.

Some other adjustments that take effect in January of each year are based on the increase in average wages. Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $147,000 from $142,800.

Social Security and SSI beneficiaries are normally notified by mail starting in early December about their new benefit amount. Most people who receive Social Security payments are able to view their COLA notice online through their personal my Social Security account. People may create or access their my Social Security account online at www.socialsecurity.gov/myaccount.

For more information, click here.

Teaching Suggestions

What might be a secure and convenient way to receive COLA notices online and save the message for later?
Ask students to trace the history of automatic Cost-of-Living Adjustments (COLA).

Discussion Questions

How can you avoid falling victim to fraudulent “Social Security” calls and internet “phishing” schemes?
What is the purpose of the COLA adjustments?
What is the official measure used by the Social Security Administration to calculate COLA?

Oct 10 2020

Resources to help you avoid scams during the COVID-19 Pandemic

Scammers are taking advantage of the coronavirus pandemic to con people into giving up their money. During this time of uncertainty, knowing about possible scams is a good first step toward preventing them.

Beware of these corona-related scams:

Vaccine, cure, air filters, and testing scams

The FTC warned about an increasing number of scams related to vaccines, test kits, cures or treatments, and air filter systems designed to remove COVID-19 from the air in your home. There is no vaccine for this virus, and there is no cure. If you receive a phone call, email, text message, or letter with claims to sell you any of these items–it’s a scam.

What to do instead: Testing is available through your local and state governments, but these tests are not delivered to your house.

Fake coronavirus-related charity scams

A charity scam is when a thief poses as a real charity or makes up the name of a charity that sounds real to get money from you. Be careful about any charity calling you and asking for donations. Also be wary if you get a call following up on a donation pledge that you don’t remember making–it could be a scam.

What to do instead: If you are able to help financially, visit the website of the organization of your choice to make sure your money is going to the right place.

“Person in need” scams

Scammers could use the circumstances of the coronavirus to pose as a grandchild, relative or friend who claims to be ill, stranded in another state or foreign country, or otherwise in trouble, and ask you to send money. They may ask you to send cash by mail or buy gift cards. These scammers often beg you to keep it a secret and act fast before you ask questions.

What to do instead: Don’t panic! Take a deep breath and get the facts. Hang up and call your grandchild or friend’s phone number to see if the story checks out. You could also call a different friend or relative. Don’t send money unless you’re sure it’s the real person who contacted you.

Scams targeting Social Security benefits

While local Social Security Administration (SSA) offices are closed to the public due to COVID-19 concerns, SSA will not suspend or decrease Social Security benefit payments or Supplemental Security Income payments due to the current COVID-19 pandemic. Scammers may mislead people into believing they need to provide personal information or pay by gift card, wire transfer, internet currency, or by mailing cash to maintain regular benefit payments during this period. Any communication that says SSA will suspend or decrease your benefits due to COVID-19 is a scam, whether you receive it by letter, text, email, or phone call.

What to do instead: Report Social Security scams to the SSA Inspector General online at oig.ssa.gov .

For more information, go to: click here.

Teaching Suggestions

Ask students if they or their families have received calls from scammers. If so, what was their response?
Ask students to prepare a list of actions to take if they receive calls from scammers. Share the list with others.

Discussion Questions

Why is it important to do your homework when you donate to a charity? should you donate in cash, by gift card, or by wiring money? Why or why not?
What should you do if you receive a call, an email, text message, or a letter claiming that an air filter system will remove COVID-19 from the air in your home?
How would you handle any communication which claims that Social Security will suspend or decrease your benefits due to COVID-19 pandemic?

Jun 20 2020

Social Security Benefit Suspension Scam

The Inspector General of Social Security, is warning the Americans about fraudulent letters threatening suspension of Social Security benefits due to COVID-19 or coronavirus-related office closures. The Social Security Administration (SSA) will not suspend or discontinue benefits because their offices are closed.

The Inspector General reports that Social Security beneficiaries have received letters through the U.S. Mail stating their payments will be suspended or discontinued unless they call a phone number referenced in the letter. Scammers may then mislead beneficiaries into providing personal information or payment via retail gift cards, wire transfers, internet currency, or by mailing cash, to maintain regular benefit payments during this period of COVID-19 office closures.

Even though local SSA offices are closed to the public due to COVID-19 concerns, Social Security employees continue to work. Social Security will not suspend or decrease Social Security benefit payments or Supplemental Security Income payments due to the current COVID19 pandemic.

Remember Social Security will never:

threaten you with benefit suspension, arrest, or other legal action unless you pay a fine or fee;
promise a benefit increase or other assistance in exchange for payment;
require payment by retail gift card, cash, wire transfer, internet currency, or prepaid debit card;
demand secrecy from you in handling a Social Security-related problem; or
send official letters or reports containing personally identifiable information via email.

If you receive a letter, text, call or email that you believe to be suspicious, about an alleged problem with your Social Security number, account, or payments, hang up or do not respond. The Social Security Administration encourages you to report Social Security scams using their dedicated online form, at https://oig.ssa.gov. For more information, please visit https://oig.ssa.gov/scam. Members of the press may make inquiries to Social Security OIG at oig.dcom@ssa.gov.

For information, click here.

Teaching Suggestions:

Ask students if they or their family members have received calls from government imposter scammers. If so, how did you or your family respond to such calls?
Ask students to make a list of possible actions that individuals can take to combat Social Security imposters.

Discussion Questions

If you believe you have been a victim of Social Security or an IRS impersonator scam, what actions should you take to prevent such calls in the future?
How do scammers play on emotions like fear or greed to convince people to provide personal information or money in cash, wire transfers, or gift cards?
Why do fraudsters often demand payment via retail gift card, cash, wire transfer, internet currency, such as Bitcoin, or prepaid debit card?

May 30 2020

What You Should Know About Applying For Retirement

Approaching and preparing for retirement can be a daunting task, but Social Security makes it as easy as possible. Social Security has eliminated the forms, signatures, wait time, and appointments. The agency has now made it easy, convenient and secure to apply. You can complete online retirement application in as little as 15 minutes from your preferred location, at a time most convenient for you. However, before you apply, consider how you’ll like to receive benefits, your health, and whether anyone else in your family can get benefits on your record.

The age you choose to retire affects the amount of benefits you receive and when you can start receiving them. If you start them any time before your full retirement age, Social Security reduces your monthly benefit. Depending on your year of birth, your full retirement age is likely between age 66 and 67. You may start receiving benefits as early as age 62 or as late as age 70.

If you elect to receive benefits before you reach full retirement age, and continue to work, it can affect your benefits. The Retirement Estimator calculates a personal estimate of how much your benefit will be at different ages and “stop work” dates. You can use it to find the best combination for your situation. You can read about other things to consider before you make your decision about when to begin your benefits. If you’re ready to apply, you can do it online.

For more information, click here.

Teaching Suggestions

Ask students to debate the statement, “It is never too early to begin planning for retirement”.
What information will you need when you apply for retirement?

Discussion Questions

Why is it important to start retirement planning when you are still young?
Would it be better for you to start getting benefits early with a smaller monthly payments for more years, or wait for a larger monthly payment over a shorter time period?