Social Security Administration information.

Articles are updated periodically and contain good information on how you can learn about and benefit from the programs of the SSA.
 
 

NUMBER OF OLDER AMERICANS WILL GROW RAPIDLY IN 21ST CENTURY

By David Smith
Social Security Manager in Bowling Green KY

Older Americans Month gives us a reason to pause and think about the remarkably long lives most Americans can now look forward to, and about the challenges and opportunities that will face a rapidly aging America in the 21st century. 

Of course, the truth is that American society has been aging rather steadily for some time now.  A hundred years ago, the average life expectancy at birth was only about 40 years.  But children born today can reasonably expect to live nearly twice that long—and many will live to be a hundred years old.

As someone who works for Social Security, I often think about the huge challenges that an aging America brings, particularly the aging of the baby-boom generation.  Baby-boomers are those 77 million Americans who were born between 1946 and 1964.  Today, most are in their 40’s.   But the oldest is now 56.

Before too long, all those baby boomers will reach retirement age.  Now I know it’s hard to imagine a number as large as 77 million.  But if you break it down a bit, it comes out to more than 10,000 people a day reaching retirement age—each and every day for nearly 20 years.

That’s a lot of retirees—and this doubling of older Americans will subtly—and perhaps not so subtly—change the way America lives. 

It’s difficult to picture just what changes will occur.  More wrinkle cream sales, early-bird dinner specials and senior merchandising discounts?   Fewer body piercing pagodas and MTV specials?   Who knows?

What we do know is that all of these retirees will need a source of dependable income to enjoy their increasingly long lives.  

That’s one reason why Social Security is so important.  More than nine of 10 baby boomers will eventually receive a monthly Social Security retirement check, and it will provide a solid financial foundation as they make their retirement plans.

At the same time, I always tell people that Social Security will not be enough.  The average monthly Social Security retirement benefit for all retired workers is about $875.  That’s something they will be able to count on for as long as they live.  But people will need more if they want to enjoy a comfortable retirement … and if they want to have something to leave to the next generation.  

That’s why Social Security always has emphasized retirement planning for workers of all ages.  Some of today’s workers could, in fact, spend as many years in retirement as they did working.  As a famous actress once observed, it is not how old you are, but how you are old.  Being old with a little money is always better.

Social Security has a great little calculator on our website—at www.ssa.gov/planners/—that helps people work through what they’ll be getting from Social Security, and we connect to another site that helps calculate pension and savings income. 

So begin your financial planning early, just in case you become one of the many centenarians in the 21st century.
 
 
 

SPOUSES CAN FILE ONLINE FOR SOCIAL SECURITY BENEFITS

Wives and husbands can now file for Social Security benefits through Social Security’s Internet website, www.ssa.gov.  “Before, you could file for benefits online only as a worker on your own earnings record, not that of a spouse,” according to David Smith, Social Security manager in Bowling Green KY. “This new online service is just another one of Social Security’s continuing efforts to serve customers in the way that they prefer.”

Social Security uses state-of-the-art encryption programs to safeguard confidential information, ensuring your private information is kept private.

“In 2000, more than 340,000 wives and husbands became new beneficiaries on their spouses’ records.  We hope that future applicants will take advantage of filing online,” said Smith.  “We are pleased to be able to extend our range of high quality services to the American public, so if you are ready to apply for retirement benefits, check us out at http://www.ssa.gov/applytoretire 
 
 
 

SOCIAL SECURITY AND SSI: DIFFERENT SAFETY NETS

By David Smith
Social Security Manager in Bowling Green KY

People tend to confuse Social Security and Supplemental Security Income (SSI) because both programs are run by the Social Security Administration and both provide benefits to aged, blind and disabled people.  However, the programs are different in important ways: financing, conditions of eligibility, payment amounts and basic purpose.

Social Security is a social insurance program you pay into when you are working so that you and your family can collect benefits when you can’t work because of age, disability or death. SSI is a public assistance program for people who are aged, disabled or blind with limited income and resources.  SSI is paid for through general revenues, not Social Security taxes.

The two programs differ in other areas, such as conditions for eligibility and the method of figuring monthly payments. Social Security benefits are payable in the event of retirement, disability or death. Wage earners need credit for a certain amount of work under Social Security to receive benefits. Your benefit amount is based on your earnings averaged over your career. Eligible family members can receive benefits on your record. 

To qualify for SSI, people must be age 65 or older or be blind or disabled and have limited income and resources.  Both children and adults can qualify on the basis of disability or blindness. In deciding whether you meet the financial limits, we exclude part of your income, as well as the value of your house and one car and some other items. 
 
 

For more information about the eligibility requirements for Social Security and SSI, type www.ssa.gov to access the following booklets: Understanding the Benefits and Supplemental Security Income on our website.  You can also contact us toll-free at 1-800-772-1213 to request copies of these publications, or visit your local Social Security office. 
 

Editor's Note:  For state SSI statistics go to: http://mwww.ba.ssa.gov/statistics/ssi_st_cty/2000/index.html
 
 
 

SOCIAL SECURITY ANNOUNCES 2003 BENEFIT INCREASE
 

Monthly benefit payments will increase by 1.4 percent next year.
They are among more than 50 million Social Security and SSI beneficiaries nationwide who will receive the annual cost-of-living adjustment (COLA) increase.  For the average Social Security retiree, the 2003 COLA will mean an extra $13 a month. “The 2003 COLA increase tells us that inflation continues to be low, which is certainly good news for the elderly and disabled,” said Jo Anne Barnhart, Commissioner of Social Security. “Inflation is one of the biggest challenges for people living on a fixed income, and the annual COLA ensures that a person’s monthly benefit doesn’t drop in value over time.”

Social Security beneficiaries will see the 1.4 percent increase in the payment they receive in January 2003. SSI beneficiaries will see the increase beginning with the payment they receive on December 31, 2002.

For Social Security beneficiaries, the average monthly benefit amount for all retired workers will rise from $882 to $895.  The maximum federal SSI monthly payment to an individual will rise from $545 to $552.  For a couple, the maximum federal SSI payment will rise from $817 to $829.
 

Some other changes that take effect in January of each year are based on the increase in average wages.  Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $87,000 from $84,900 in 2003.  
Of the approximately 155 million workers who pay Social Security taxes, about 9.7 million will be affected by the higher wage base next year.

Information about Medicare changes for 2003 can be found at www.hhs.gov  – the Internet site for the Department of Health and Human Services.