Social Security Budget CutsSubmitted by Karstens Investments on February 10th, 2017
By Ryne J. Bessmer, AIF®
Due to recent budget restrictions, Social Security statements will now only be sent to Americans who are 60 or older who are not receiving bene ts and have not created an online Social Security account with the agency. This is a cost-savings measure that is expected to cut nearly $11 million from the Social Security Admin- istration’s annual budget.
The agency’s budget is now 10% lower than it was in 2010, despite the fact that the number of Americans collecting social security bene ts is up by 13% over the last 7 years as baby boomers reach retirement age. If you or your family have recently called in to your local Social Security of ce, you likely noticed the shorgtage in staff. Countless retirees are complaining of long wait times on the phone, and more than one million Americans are now waiting to hear from the agency to determine their eligibility for disability bene ts.
Back in 1999, Social Security began mailing annual bene t statements to workers who were age 25 and older. The agency has made an effort to continue doing this over the years because the statements have become an essential part of nancial planning. Additionally, these documents serve as a sheer reminder to American workers that additional savings will be needed to supplement their Social Security bene ts. The statements also provide individuals with a complete history of their wage earnings and the payroll taxes paid on their earnings throughout their ca- reer. Working Americans should look at their statements once a year and ensure that they are correct. If there are any errors, you must report them promptly to the agency. If you are one of the millions of Americans affected by this new rule change, we recommend that you create an online account at www.ssa.gov/myaccount and you will be able to download your statement any time.