#social-security

#social-security

The new rule, which went into effect in November, applies to all 'able-bodied adults' 64 or younger who don't have dependents and don't work, volunteer, or participate in job training at least 80 hours a month, restricting them to three months of benefits every three years from SNAP.

At some point, Congress will need to save Social Security, or not. According to the 2025 Trustees Report, the Old-Age and Survivors Insurance (OASI) trust fund will become insolvent by 2033. The combined OASI and Disability Insurance (DI) funds will suffer that same fate in 2034. The truly frightening thing is that, according to the same report, if Congress does nothing, the situation will become catastrophic. "At that time (2034), there would be sufficient income coming in to pay 81 percent of scheduled benefits."

The Social Security Old-Age and Survivors Insurance (OASI) Trust Fund, which is where retirement benefits are paid from, only has enough reserves to pay 100% of scheduled benefits through 2033. Once the OASI Trust Fund is depleted, retirement benefits could face a 23% cut. The Social Security Disability Insurance (DI) Trust Fund, meanwhile, can pay 100% of scheduled benefits on its own through at least 2099.

And while the average retirement benefit today is only $2,071, it's somehow just enough income for some seniors to live on. But it's not a given that every Social Security recipient will get their monthly check in full. Working while collecting Social Security, for example, could result in withheld benefits for exceeding the program's earnings test thresholds. The earnings test applies to Social Security recipients who have not yet reached their full retirement age.

For a long time, Social Security field offices were set up to handle claims on a local basis. But beginning on March 7, the SSA is shifting away from this model to a centralized system where claims are handled on a nationwide level. That's a problem, though, because field office employees tend to be more familiar with local rules and are therefore better equipped to help seniors in their jurisdiction.

Social Security is a critical income source for many seniors, with the Social Security Administration reporting that these benefits account for around 31% of all income received by people over the age of 55. For around 39% of men and 44% of women 65 and over, benefits actually account for even more - about half their income. Since so many seniors are reliant on retirement benefits to help them make ends meet, it's a huge problem that the Social Security trust fund is at risk of running dry. Unfortunately, it's a problem that Americans need to reckon with, as Social Security benefits are on track for an automatic benefits cut as early as 2032.