In recent days, Social Security has come up with too many new changes. While we have repeatedly clarified most of these shifts in our previous articles and urged people to reach out to the authorities and check their website for the recent updates, a few older adults still seem to be confused. According to senior columnist Kerry Hannon, recent updates to Social Security have sparked numerous questions.
Most of these queries have been about three things: first, general worries over delayed social security payments and their below-average service; second, confusion over Roth conversions from tax-deferred retirement accounts; and third, why some individuals are bound to claim benefits at age 62.
Under the Trump administration, several changes, including a delay in payments, major changes in the ways queries are handled, and a sudden cut in SSA workforces, have occurred. These changes have allegedly affected around 74 million Americans and their benefits. Even though the government is working towards positive changes like launching the motive of providing an alternative to the physical SSN card and going completely digital soon, none of them matter if retirees do not get their payments on time.
For example, an average 62-year-old American who does not have much savings is planning to prepare to retire and is scheduled to meet with the SSA team in early June 2025. They may wonder when their first check will arrive. As per senior columnist Kerry Hannon, it would take about 30 days for the money to come, depending on the application process. Sometimes, it may also take up to 45 days.
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Kerry Hannon advised retirees to apply four months in advance of when they want benefits to start to avoid major potential delays and ensure seamless processing of funds. Moreover, the SSA recently confirmed that field offices are currently struggling with timely responses, but officials are reportedly working to resolve these delays. Meanwhile, another issue some Americans are facing is age discrimination in hiring.
Many citizens are forced into retirement when they cannot find work or have difficulty making ends meet. This situation leads them to claim social security benefits before reaching full retirement age, causing long-term financial strain. So, an average citizen who retires at 62 instead of at the full retirement age, which is 67 or even 70, gets about 30% less each month for life.
Hence, it is more important than ever to maximize your Social Security checks and maximize their benefits. As of April 2024, the average Social Security check for retired workers was $1,920.48.
Nevertheless, there are several techniques to maximize your SSA benefits, which include working up to 67 or 70, even though the official retirement age in America is 66. Those who remain past it have the benefit of an 8% annual return on their benefit amount. Your benefits increase by 8% each year, thanks to delayed retirement credits.
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Meanwhile, more new changes seem to be on the radar for Americans, as the Social Security Department is constantly changing. Scott Galloway is a professor at New York University. He has recently suggested that there should be a financial cut on social security for wealthy people. He stated that younger Americans are unfairly receiving benefits from the wealthiest generation in history.
While this suggestion went viral and made headlines, people seem to have mixed reactions to it. In contrast, that will be a discussion reserved for another time. For now, we hope we have answered some of the major questions and relieved your worries.
