As we await Wednesday’s big official announcement of the 2022 Social Security Cost of Living Adjustment (sure to dwarf this year’s 1.3% increase by falling in the 5.9% to 6.1% range), the Social Security Administration last week showed off the new way workers will learn the value of their future benefits.
Kilolo Kijakazi, Acting Commissioner of Social Security, introduced a new look and feel to the Social Security Statement, available online through the my Social Security portal at www.socialsecurity.gov/myaccount and by mail.
The Statement is one of the most effective tools people can use to learn about their earnings and future Social Security benefits. SSA says this fresh look—replacing the old text-heavy four-page document with two pages of boxes, charts and graphs—will allow millions of people to see their earnings information and estimates of future benefits quickly and securely.
“One of my top priorities is to provide information to people in clear and plain terms about Social Security’s programs and services,” said Acting Commissioner Kijakazi. “The streamlined Social Security Statement contains clear messaging and makes it easier to find information at a glance, helping to simplify our complex programs for the public.”
The agency conducted extensive research, review, and testing to make the updated Statement easy to understand. The new Statement is shorter, uses visuals and plain language, and includes fact sheets tailored to a person’s age and earnings history.
For example, personalized estimates of retirement, disability and survivor benefits, previously listed on page 2 of the statement, now appear right up front, in a bar chart and a set of labeled gray boxes.
Examples of the new Statement (see image above) and fact sheets are available at www.socialsecurity.gov/myaccount/statement.html.
More than 61 million people have already created my Social Security accounts. U.S. citizens age 18 or older can easily view their redesigned Statement online by creating a my Social Security account. People age 60 or older who do not receive benefits and do not have a my Social Security account will receive their Statement by mail three months before their birthday. Workers should check their Statement at least once a year for accuracy.
People can check information and conduct most Social Security business through their personal my Social Security account. If they already receive Social Security benefits, they can start or change direct deposit online, request a replacement SSA-1099, and if they need proof of their benefits, they can print or download a current Benefit Verification Letter from their account.
In addition to obtaining their personalized Social Security Statement, people not yet receiving benefits can use their account to request a replacement Social Security card online if they meet certain requirements. The portal also includes a retirement calculator and links to information about other online services, such as applications for retirement, disability, and Medicare benefits.
Starting in the early 2010s, as a cost-cutting measure the SSA began phasing out printed mailed statements and focused on providing beneficiary information online. While people can request a printed version at any age, hard copies are now sent automatically only to workers age 60 and up who do not receive benefits and do not have My Social Security accounts, three months before their birthday each year.
This being the case, groups like AARP have endorsed the federal Know Your Social Security Act, which would mandate a return to mass mailings of the statements. The proposed bill was reintroduced in the House and Senate back in June by Senate Finance Committee Chairman Ron Wyden (D-OR), Finance Committee Member Senator Bill Cassidy (R-LA), House Ways and Means Social Security Subcommittee Chairman John B. Larson (D-CT) and Ways and Means Committee Member Vern Buchanan (R-FL).
The bill has seen no movement since its introduction, as preoccupation with other legislation including President Joe Biden’s infrastructure and social spending bills have kept Congress from tackling even bipartisan causes like Social Security and retirement reform (SECURE 2.0).
Finally, check back with 401k Specialist for coverage of Wednesday’s announcement of the official 2022 Social Security COLA.
SEE ALSO:
• 2022 Social Security COLA: Final Estimate Confirms it Will More Than Quadruple
• ‘Fair COLA for Seniors Act of 2021’ Introduced in House
• 2021 Social Security COLA Officially 1.3%
• ‘Know Your Social Security Act’ Introduced in Congress
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
What????!!!!??? You mean AARP endorsed an Act with no effect? I cannot believe that. And they give such nice sports bags as gifts to their new subscribers, too.