March Sees More Than 13,000 Americans Removed From Social Security
In March of this year, over 13,000 Americans were removed from the Social Security program, according to data from the Social Security Administration (SSA). The reasons behind this decline in beneficiaries below the age of 64 are still unclear, but there was a noticeable increase in social security recipients among the “aged” group and a decline among the “blind and disabled” group.
The SSA data showed that in February 2024, 7.28 million individuals received social security payments. However, this number fell by 13,578 beneficiaries to 7.27 million in March, a decrease of 0.18 percent. This drop in beneficiaries suggests that there may be a decline in the number of social security recipients if qualified individuals pass away and their children or other relatives are ineligible to receive the monthly benefits.
The issue of declining beneficiaries is compounded by the fact that Social Security funds are facing depletion. The SSA estimated back in 2019 that the trust fund reserves of Social Security could be exhausted by 2035, leaving only enough money to pay 80 percent of scheduled benefits. However, a 2023 report by the U.S. Congressional Budget Office (CBO) predicts that the exhaustion limit could occur two years earlier in fiscal year 2033. After this point, social security benefits might be reduced by 25 percent starting in 2034 and could be up to 30 percent smaller by 2097 and later.
To address this impending insolvency crisis, some solutions have been suggested. One proposal involves increasing the age for full Social Security benefits from 67 to 70 years. Additionally, the age to start receiving early Social Security benefits could be delayed from 62 to 65. These measures aim to alleviate the strain on Social Security funds by reducing the number of beneficiaries and delaying benefit payouts.
Despite these challenges, there have been recent increases in social security payments. In 2024, beneficiaries saw their monthly payments rise by 3.2 percent due to a cost-of-living adjustment (COLA) hike made by the SSA. Estimates by The Senior Citizens League (SCL) predict that monthly payments will rise again by 2.6 percent next year. However, some argue that these increases are not enough to keep up with the rising costs of goods and services.
A survey conducted by public interest law firm Atticus in November 2023 found that 62 percent of seniors receiving social security payments were unhappy with the 3.2 percent hike in 2023. Many seniors already struggle financially with their existing Social Security income, with nearly 40 percent planning to find work or considering employment to supplement their income.
Despite these challenges, there are ways for individuals to boost their social security payments. Working longer can help maximize social security benefits since they are calculated based on the highest 35 years of work. Additionally, delaying the start of benefit receipts can result in a larger check. While individuals can start receiving social security payments at age 62, waiting until age 70 can lead to a higher payout.
As the future of Social Security remains uncertain, it is crucial for individuals to be proactive and explore strategies to maximize their benefits. By working longer, delaying benefit receipts, and staying informed about potential policy changes, Americans can better navigate the evolving landscape of Social Security and secure their financial well-being in retirement.
