Congress enacted requirements in 1989 and 1990 for Social Security statements to be sent annually, but it’s fallen short. Now four Beltway politicians are doing something about it.
Proving retirement planning issues are rarely partisan, the Know Your Social Security Act was introduced on Thursday by Senators Bill Cassidy, R-La., and Ron Wyden, D-Ore., and House Ways and Means Committee Members John Larson, D-Conn., and Vern Buchanan, R-Fla.
The legislation will clarify the requirement for the Social Security Administration (SSA) to mail a yearly Social Security statement to eligible workers. Since 2011, SSA has only mailed annual statements to a limited group of workers: those who are age 60 years or older, are not receiving Social Security benefits, and have not registered for an online account with SSA.
Specifically, the bill will require the SSA to mail an annual Social Security statement to all workers aged 25 and older with covered earnings who are not receiving Social Security benefits.
The statement shows how much a worker has earned each year of their career; the worker’s contributions to both Social Security and Medicare; and the worker’s estimated Social Security retirement, disability, and survivor benefits. It also tells workers how to ensure the accuracy of their earnings record so that in the future they will receive the correct Social Security benefit amount.
Senators speak
“Americans planning for retirement want to know how much they have in social security. This bill makes sure they know,” Cassidy said.
“Americans pay into Social Security out of every paycheck in exchange for a guaranteed benefit in their old age,” Wyden added. “As younger Americans grow more doubtful about their chances for a secure retirement, this bill will provide them a clear view of what their earned benefits will be. I am going to keep pushing to get this done with our bipartisan, bicameral coalition so Americans know Social Security will be there for them.”
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
