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USA Today
25-03-2025
- Business
- USA Today
If you're not scared about Social Security, you should be
If you're not scared about Social Security, you should be | Opinion We believe there's a plan at work: All the disruption at Social Security is designed to cause the program to eventually collapse. And the fix? Privatize the system. Show Caption Hide Caption Social Security Admin. commissioner steps down over DOGE request The acting head of the Social Security Administration reportedly stepped down over DOGE requests to access sensitive government data. Straight Arrow News The Social Security program is 90 years old come August. About 70 million Americans currently receive a monthly benefit. An estimated 185 million Americans pay into the system and plan to receive benefits someday. They depend on it to be there for them. Recent events raise serious questions whether it will be. Here's a recap: Elon Musk's efforts to discredit Social Security Elon Musk claimed that millions of Americans over the age of 100, 200 or even 300 are getting monthly Social Security benefits. Those claims have been debunked by the news media and by the Social Security Administration. The president amplified those false claims in a speech to a joint session of Congress, saying they indicated 'incompetence' in the Social Security program. Musk called Social Security "the biggest Ponzi scheme of all time." Opinion: An unelected billionaire is gunning for Social Security. Get Musk out, now. Leadership of the Social Security Administration in turmoil The Social Security Administration is on its third acting commissioner since November. The Senate Finance Committee is scheduled to hold a hearing Tuesday to consider Frank Bisignano to lead the SSA. The acting commissioner who left in November is raising alarms about a potential 'systems collapse' and 'eventual interruption of benefits.' Another commissioner, who left in February, did so because she refused to allow Musk's DOGE (Department of Government Efficiency) team to access top-security data bases that contain personal information on almost every American. The current acting commissioner, a mid-level Social Security employee elevated by the president, had been placed on administrative leave by prior agency leaders due to allegations of 'multiple inappropriate actions' dealing with the Musk team. The goal? Privatize Social Security. The Social Security Administration is in a death spiral. Its workforce has dwindled from a high of 80,000 in the 1980s to a projected 50,000 this year. While resources have shrunk dramatically, workloads have ballooned largely due to the retirement of baby boomers and increasing life spans. Opinion: Musk's unpopular DOGE piles up legal losses, so Trump targets federal judges The result is poorer service to the public: less access to humans for personal assistance, longer telephone wait times, delays getting appointments at local offices, more difficulty in getting clear answers to non-routine questions, unacceptable holdups in getting decisions on applications for disability benefits, etc. What the heck is happening here? We believe there's a plan at work: All the disruption at Social Security is designed to cause the program to eventually collapse. Here's the scenario: Continued declines in service lead to public frustration and anger. Citizens come to believe what they're being told: The government can't do anything well. People lose faith in the system and become ready to accept radical change. In other words, break it to fix it. And the fix? Privatize the system. Let banks and financial firms run it. Turn Social Security contributions into investments in stocks, bonds, crypto or whatever. End guaranteed benefits and instead have every American responsible for their investment return, with some people succeeding and some failing. President George W. Bush wanted to do this back in 2005. His plan failed because Americans liked Social Security and they had confidence in it. It also failed because enough members of Congress were independent-minded and wouldn't go along. Times are certainly different now. But this train can and should be stopped. Iowa's members of Congress must stand up and speak out. They should call for hearings, get answers and insist on greater transparency and accountability from DOGE and leaders of the Social Security Administration. Our elected representatives will only take those actions if constituents tell them to. Advocacy organizations for workers, older Iowans and people with disabilities should raise their voices. Iowans of all ages should call, email and visit their representative's offices. Express concerns. Ask if they support the existing Social Security system and what they will do to improve it. Insist on clear answers. Remind them while millionaires and billionaires may not depend on Social Security, ordinary people leading real lives do. Frustrated? Scared? Then make some noise. It's time to end the chaos and make Social Security secure again. John and Terri Hale own The Hale Group, advocating for older Iowans and people with disabilities. John worked for the Social Security Administration for 25 years in its Baltimore headquarters, Kansas City regional office, and in multiple Iowa field offices. Reach them at terriandjohnhale@ This column originally appeared in the Des Moines Register.
USA Today
12-03-2025
- Business
- USA Today
Taxing the rich won't fix Social Security's insolvency issue — but it would go a long way
Taxing the rich won't fix Social Security's insolvency issue — but it would go a long way Show Caption Hide Caption Social Security Admin. commissioner steps down over DOGE request The acting head of the Social Security Administration reportedly stepped down over DOGE requests to access sensitive government data. Straight Arrow News If you're one of the more than 68 million Americans who depend on Social Security, you probably can't imagine your life without it. While some argue that these checks don't go far enough, they're still a reliable source of monthly income. So it's natural to be worried about Social Security being less than a decade away from insolvency. Politicians and experts have thrown around several ideas for how to increase the program's funding to avoid benefit cuts. One that's struck a chord with most Americans is forcing the wealthy to pay more in Social Security payroll taxes. It's easy to see why. The majority of Americans would benefit from this move without feeling any negative consequences. Unfortunately, fixing Social Security's funding issues isn't that simple. But taxing the wealthy could be part of a broader Social Security reform strategy that'll likely start to crystallize in the coming years. Why taxing the rich would help Social Security Social Security currently has about nine years until its trust funds are depleted. Beginning in 2035, the program's projected income would only be enough to cover about 83% of scheduled benefits. That would result in a 17% cut to all beneficiaries, unless the government makes some major changes. It could use several strategies to resolve this issue, including reducing benefits for some or all Americans. But that's understandably not popular with people who rely upon the program. Increasing the program's revenue is a more appealing solution, and in the hunt for more money, the Social Security payroll tax cap has found itself under the microscope. In 2025, Americans only pay Social Security taxes on the first $176,100 they earn. That means ordinary workers owe these taxes on all their annual income, while the wealthy may only owe these taxes on a small fraction of their annual income. In the past, the taxable wage cap was high enough to cover at least 90% of total wages, but now the number is closer to 80%, according to Brookings. Increasing or eliminating the payroll tax cap would give Social Security billions of dollars to put toward future benefits. But it's not enough to permanently resolve the program's funding issues. It would only close about half the shortfall The latest projections indicate that if the government began subjecting all earned income to Social Security payroll taxes beginning in 2025, it would reduce the program's shortfall by about 53%. That would be enough to keep the program afloat for another few years, but we'd be back in a deficit by 2029, according to the Manhattan Institute. This is largely due to the sheer size of the deficit, but it's also worth noting that under the current benefit formula, your monthly benefit amount in retirement depends on how much money you paid Social Security payroll taxes on throughout your career. If high earners began paying more into the program, they'd also be entitled to take more out of it, so this increased spending would offset some of the gains the higher tax revenues would bring. Some have argued that the government should eliminate the payroll tax cap without any accompanying benefit increase for the wealthy. This would buy Social Security more time. It might last as long as 2060 before its trust funds are depleted, per the Manhattan Institute. But, again, it's not enough. The reality is that no single strategy can get Social Security back on a good financial footing. It will take a combination of approaches, most of which lack the broad appeal of upping taxes on the rich. Payroll tax increases are likely. Direct or indirect benefit cuts — such as raising the full retirement age (FRA), which would increase the early claiming penalty for younger workers — remain a possibility. But only time will tell. It'll ultimately be Congress's decision. We can share our thoughts and opinions with our Congressional representatives. But beyond that, we have to focus on what we can control. Workers should do their best to set aside retirement savings so they're less dependent on Social Security in retirement. Seniors may also be able to supplement their checks with savings or income from a job. Once we know what Social Security reforms the government plans to make, it'll be time to go back to the drawing board and figure out how our checks will fit into our budgets going forward. The Motley Fool has a disclosure policy. The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY. The $ 22,924 Social Security bonus most retirees completely overlook Offer from the Motley Fool: If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $22,924 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Simply click here to discover how to learn more about these strategies. View the "Social Security secrets" »
USA Today
22-02-2025
- Business
- USA Today
Is my tax and Social Security data safe from DOGE? Safeguard these sensitive records.
Is my tax and Social Security data safe from DOGE? Safeguard these sensitive records. Show Caption Hide Caption Social Security Admin. commissioner steps down over DOGE request The acting head of the Social Security Administration reportedly stepped down over DOGE requests to access sensitive government data. Straight Arrow News If you follow the news, you've probably read about the Department of Government Efficiency and its incursions into the seemingly bottomless trove of federal data, including potentially sensitive tax and Social Security records. Elon Musk's cost-cutting campaign has stoked fears about the data itself: that sensitive records might be mishandled, copied, leaked or lost. The concurrent mass layoffs of government workers potentially leave fewer trained hands available to safeguard the records. Some security experts warn that outside hackers could exploit the situation to access the data for their own nefarious use. Thankfully, none of the worst-case scenarios seems to have played out with America's data. The Trump administration reportedly has agreed not to access personalized tax data. DOGE agents have "read-only" access to Social Security records, which means "DOGE personnel CANNOT make changes to agency systems, benefit payments, or other information," said Lee Dudek, acting Social Security commissioner, in a statement. 'The risks of the government losing your records altogether or misplacing them is probably pretty slim,' said Chuck Bell, programs director for advocacy at Consumer Reports. Still, the DOGE data dive comes at a time when data breaches seem to be on the rise. There's no reason, data experts say, to assume your federal data is any safer than records held by healthcare companies and banks. Here, then, are some expert tips on the federal records that you should track down, download and save, and for how long. Tax returns Common wisdom dictates you should keep your tax returns for at least seven years, if not forever. These crucial records are probably already in your files: Just make sure you don't toss them. 'They serve as a historical record and may be needed for financial transactions, proving compliance, filing an amendment, long-term financial planning, loan applications and even verifying Social Security benefits,' said Mark Gallegos, a CPA in Chicago. Why seven years? The IRS can audit you for any reason for three years from the date you filed your return, said Paul Mendelsohn, a CPA in Livingston, New Jersey. The agency has up to six years to audit a return over a major issue, such as unreported income. The seventh year 'provides a buffer,' Gallegos said. Tax supporting documents You should hold on to the documents you filed with your tax return or used to prepare it, including W-2 forms, 1099s, receipts and expense records, for at least three years, and ideally for seven, the CPAs said. But the seven-year rule comes from an age of paper files and cluttered basements. If your records are electronic, and clutter isn't an issue, then 'I don't see any harm in keeping electronic tax records indefinitely, assuming they aren't vulnerable to hackers,' said Adam Brewer, a tax attorney in San Diego. IRS transcripts For more comprehensive tax records, taxpayers can request an IRS transcript, an electronic summary of a return, typically available for the past three years. Taxpayers may also request account transcripts, which show 'when they filed their income tax return, some basic information like adjusted gross income and filing status, and any payments that have been applied to their account,' Brewer said. A third type of IRS transcript shows all third-party documents received by the IRS, including W-2s and 1099 forms. Taxpayers may request transcripts from the IRS website with a valid account, by phone, or in person at an IRS office, Brewer said. Social Security records Open an online account at the Social Security website, if you haven't, Mendelsohn said. With an active account, you can download and save your Social Security statement, a record of your lifetime Social Security earnings and estimate of your monthly benefits, depending on the age you claim them. 'Print out your statement every year and save it in hard copy or online,' Mendelsohn said. 'You can throw out the previous year when you get the new one.' It's a good idea, too, to have a hard copy of your Social Security card, which can serve as valuable identification. If you've mislaid it, you can request a new one online. Other federal records Here is a partial list of other sensitive federal data you might want to download for safekeeping, suggested by the experts.
USA Today
22-02-2025
- General
- USA Today
16 Social Security facts that all divorced spouses should know about benefits
16 Social Security facts that all divorced spouses should know about benefits Divorce may be complicated, but Social Security benefits after divorce are simpler than you might think. Keep reading to learn about how exes collect. Show Caption Hide Caption Social Security Admin. commissioner steps down over DOGE request The acting head of the Social Security Administration reportedly stepped down over DOGE requests to access sensitive government data. Straight Arrow News Divorce is rarely a straightforward experience. There's bound to be a flurry of emotions. In addition, there are practical issues to work through, like how marital belongings will be divided and where children or pets will reside. Social Security benefits may not be one of your top concerns as you divorce, but it's good to understand how they work — even when you're an ex-spouse. The requirements According to the Social Security Administration (SSA), you may be entitled to Social Security benefits based on an ex-spouse's work history if you meet the following criteria: You're at least 62 If you're under full retirement age (FRA) but care for a child younger than age 16 or a child with a disability who is entitled to benefits based on your ex-spouse's record You are currently unmarried If you've remarried since your divorce, you can only collect benefits on your former spouse if the subsequent marriage ended by annulment, divorce, or death. You're divorced from someone entitled to Social Security retirement or Social Security Disability benefits You were married to your ex for a minimum of 10 years If your ex isn't claiming Social Security benefits yet, you must be divorced for at least two years before applying. Curious details worth knowing As with all financial decisions, the goal is to benefit your bottom line. It helps to be aware of the details. For example: If you're entitled to benefits based on your work record, the benefit amount you would receive based on your ex- spouse's record must be higher. If your ex died after you divorced, you're still eligible to collect widow's benefits. If you were born before Jan. 2, 1954, you can take advantage of a "restricted application," a strategy that allows you to collect Social Security benefits based on your ex-spouse's work record while allowing your retirement benefit to accumulate delayed retirement credits. For example, you may decide to collect on your ex's benefits at age 62 and let your benefits continue to grow until age 70, then switch to those. Your ex-spouse will not be informed that you're receiving ex-spouse benefits. Any benefits you receive will not impact your ex's benefits, or if they're remarried, that of their new spouse. How much you can receive Effective planning requires knowing how much money you can expect to bring in each month. Based on an ex-spouse's work record, here's how much you can expect to receive. The maximum Social Security spousal benefit you're eligible to collect is 50% of the amount your ex-spouse would collect at (FRA). The current FRA for anyone turning 62 in 2025 is 67 years old. There is no increase to your spousal benefit, even if your ex works beyond FRA. If your ex retires at 62, your payment will be 32.5% of their benefit at FRA. You can't collect Social Security benefits based on your work record and your ex-spouse's work record. Let's say you'll be eligible for a monthly Social Security benefit of $800, but your ex-spouse will be eligible for a $2,000 monthly benefit once they reach FRA. At FRA, you'll receive your $800 benefit plus an additional $200 payment to bring you to your $1,000 spousal benefit. (Remember, the most you can receive as an ex-spouse is 50% of your former spouse's full FRA benefit.) It's natural to have questions about Social Security and everything, from when you should begin collecting to how much you'll receive, may feel like a puzzle. However, there's nothing puzzling about whether you should collect benefits based on an ex's work record. If doing so nets you more money each month, you owe it to yourself to take advantage of the situation. The Motley Fool has a disclosure policy. The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY. The $ 22,924 Social Security bonus most retirees completely overlook Offer from the Motley Fool: If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $22,924 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Simply click here to discover how to learn more about these strategies. View the "Social Security secrets" »
