Category: Social Security
July 4, 2025 - In an unusually partisan email that appears to have been sent to all Social Security beneficiaries today, the Social Security Administration touted the "Big Beautiful Bill" just signed into law. The headline of the email was: "Social Security Applauds Passage of Legislation Providing Historic Tax Relief for Seniors". The email has sparked outrage from former Social Security Administration officials and responsible media sources.
While every administration always tries to shine the brightest lights on its goings on, Social Security Commissioner Frank Bisignano hit a new sycophantic high in its misleading email: “This is a historic step forward for America’s seniors.... By significantly reducing the tax burden on benefits, this legislation reaffirms President Trump’s promise to protect Social Security and helps ensure that seniors can better enjoy the retirement they’ve earned."
If only that were true!
Misleading and not true
The New York Times, CBS, NBC, AARP, and many other groups were quick to criticize the email. One example, according to the NY Times: “The S.S.A. statement implies there is a direct tax cut on Social Security benefits,” said Howard Gleckman, a senior fellow at the Tax Policy Center, a nonpartisan think tank, “which there is not.”
No help for the bottom half
The bill does nothing to help the poorest Americans. Individuals earning less than $25,000 per year and $32,000 for couples do not owe any taxes. Recipients earning more than that paid taxes on up to 85% of their benefits, depending on their income. Prior to the new bill less than half of beneficiary families owed federal income tax on their benefits, according to the SSA.
Header for the misleading email
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Published on July 4, 2025
Comments 4
Category: Financial and taxes in retirement
June 17, 2025 -- Many Americans are stumped when it comes to understanding important financial and retirement issues. Asked questions related to Social Security benefits, Medicare coverage, employment-based retirement savings, most respondents in a recent study bombed. On average, they only answered two of the six questions on these issues correctly.
We're including the quiz below so you can see how you would do!
The bad news comes in a new report from the TIAA Institute and the Global Financial Literacy Excellence Center at the George Washington University School of Business. There were six questions in the 2025 survey used to gauge basic retirement fluency. Those included knowledge promoting financial well-being in retirement. Each question covered a distinct subject: Social Security benefits, Medicare coverage of healthcare expenses, employment-based retirement savings, ensuring lifetime income, likelihood of needing long-term care at older ages, and life expectancy in retirement.
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Published on June 16, 2025
Comments 1
Category: Social Security
June 15, 2025 — It has always been the case that many more retirees claim their Social Security benefits at the earliest opportunity. The earliest possible age for claiming is 62, but only a small percentage delay until they are eligible for their maximum benefit at age 70. Some experts…
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Published on June 15, 2025
Comments 3
Category: Social Security
March 29, 2025 — Social Security’s future has long been discussed, usually with a negative picture. The Trust Funds are running out because more in benefits is being paid out than is contributed by workers. The latest estimate is that the retirement portion of SSA Trust Funds will be depleted…
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Published on March 28, 2025
Comments 17
Category: Social Security
March 12, 2025 — The 68.6 million Americans who receive Social Security retirement benefits have an obvious interest in its future. It is especially important for the half of Americans aged 65 or older who live in households where Social Security benefits account for at least 50% of their family income. Roughly 25% rely on these benefits for at least 90% of their income. Any cuts to Social Security will severely affect those folks, and in fact, almost anyone who gets those benefits.
Despite promises not to impact Social Security, the “third rail” of politics, signals from the new administration are not encouraging. DODGE czar Elon Musk, who is busily applying his chain saw to U.S. institutions, told Podcast Host Joe Rogan last week that Social Security is “the biggest Ponzi scheme of all time". SSA Commissioner Dudek said he plans to cut at least 7,000 employees, even though at 60,000, its staff is at a 50 year low. Plans are afoot to close at least 47 regional offices, with many concentrated in the South and across the Southeast. Some of those were already slated for closure due to lack of in-person visits, but most were not.
Critics of the Administration counter that it is difficult to see how slashing employees and local offices is going to lead to anything but longer waits and delays in getting benefits and customer service. According to Democratic Sen. Kirsten Gillibrand of New York, the White Plains hearing office in her state has 2,000 pending cases. If closed, she believes that beneficiaries will be required to travel between 24 and 135 miles to get to another office if it closes.
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Published on March 11, 2025
Comments 50
Category: Social Security
The range of possible retirement benefits from Social Security is huge. As of 2025, the average monthly Social Security retirement benefit is $1,976, reflecting a 2.5% Cost-of-Living Adjustment (COLA) from the previous year. But some people get less, based on their lifetime earning history and at what age they started taking their benefits. How does your benefit (or expected benefit) stack up against that average - are you getting more, or less?
Minimum - Average - and Maximum Benefits
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Published on February 19, 2025
Comments 13
Category: Social Security
Dec. 21, 2024 — In what will probably be one of the last acts of the current Congress, the Senate overwhelmingly passed a bipartisan measure that will provide full Social Security benefits to public sector workers. Approximately 2.8 million public pension recipients will now receive benefits at the same rate…
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Published on December 21, 2024
Comments 3
Category: Social Security
December 18, 2024 -- The subject of when to take Social Security is one of the most hotly debated retirement topics. Although the system was designed for both decisions to be equal, there are plenty of proponents for each approach.
Case Study - High Earners
Let's explore the following case. Two people aged 76 made the maximum contribution to Social Security during their 35 year working careers. One files for benefits at the first opportunity (62), the other waits to get the max benefit at age 70 We wanted to find out who comes out ahead, and when. So we asked AI to do the calculations for us. The results came back instantly, and judging from the sources they used, they look accurate. Here is what we found:
Total Benefits Received
The person who claimed at 62 started receiving benefits 14 years ago, while the other began 6 years ago:
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Published on December 17, 2024
Comments 10
Category: Social Security
December 12, 2024 -- The results are in from last week's instant poll, and they have a practical bent. The question to be voted on was, "What do you think will happen when the Social Security Trust Fund Runs Out of Money in 2033?". We received over 150 votes, which gives us a good sample of what our Members are thinking (thanks to all who voted)!
The winning option was definitely pragmatic - 28% voted for "Payroll taxes increased and/or change to maximum earnings ceiling." This is certainly a practical solution, one that we at Topretirements definitely agree with.
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Published on December 11, 2024
Comments 1
Category: Social Security
November 31, 2024 — We would love to get your vote on what will happen on this issue. The Social Security Retirement Trust Funds are expected to run out in 2033. When that happens it is estimated that only about 79% of benefits can be paid. Congress has been dithering…
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Published on November 30, 2024
Comments 35
