Those huge delays in Social Security processing, Are they?

[fffred]

It doesn't seem that processing times are extraordinarily long such that there is a systemic problem (there is a problem but this is not it). A few thoughts on this:

1 - This article at SSA indicates "You can apply for retirement benefits up to 4 months before you want to start receiving your benefits." https://www.ssa.gov/faqs/en/questions/KA-01891.html, So, no point in applying sooner, you'll just be waiting longer.

2 - I have read, and been told by SSA representatives over the phone, that while they may begin processing upon receipt of the application, it may not be completed until closer to the month that the benefit is to begin. So, you apply in January for benefits to begin in April (with first payment in May) you may see no activity on your application until sometime even in April. I have no documentation of this scheduling but it's what SSA rep's told me once or twice, so this is anecdotal. (And this was the case for me.)

3 - Per the SSA itself, "Percentage of people receiving benefits on time or within 2 weeks of applying" ranges around 80% to 85%. That quoted phrase is a bit to unpack. I see two different interpretations, (1) two groups of people, one who receive their benefits within 2 weeks of applying, and another group who receive their benefits "on time" per their application's elected age. Another interpretation, (2) one group of people, those who receive their benefits within two weeks of their application's elected age. Either way, the percentage is very high. See https://www.ssa.gov/ssa-performance/processing-time-benefits

I understand the anguish people go through while waiting for their retirement benefit; I went through this myself 3 years ago. I kept a status/contact log in a spreadsheet, recording all the times I checked My Social Security or called for something. My log shows a very "frustrating" period of time. My own application could have been affected by the fact I was no longer resident in the US when I applied (US Citizen but a resident of Canada), this can impose additional investigations, requiring more time.

I believe the biggest mistake that the SSA makes is with lack of accurate feedback on the page where you check your application status. Perhaps the current method has changed; when I applied I could log in to check the progress (I don't recall if this was in My Social Security or another place) and there were 3 stages, 1, 2, 3, Bingo! And at that time a message indicated "A representative in [Baltimore, Maryland for my case] started reviewing your application on February 8, 2022. For most people, this review takes 2 to 4 weeks." Maybe that time period was accurate, although I doubt it, this was in the middle of the pandemic. Systems all over were hung up, I'm sure SSA's were too.

The SSA should tweak that message dialog so as to temper peoples' expectations (I know this frustrated feeling well!). The simple three steps could be replaced, maybe with a dial clock-type showing the progress. Or progress bars. And to be more circumspect with the expected duration they put on the message (if they still do this). Maybe they could just show that they expect to have approval completed during your retirement month from your application...so many (myself included) may expect approval to "just proceed" right away and then when it's time they'll get their benefit.

My suggestion is that applicants chill out, relax. It's gonna take some time. In MOST cases there won't be any problems with your application. Which is to say that in some few cases, yes, there may be some hang ups. That earlier SSA article states "Each year, we typically sign up over 6 million new customers for the Retirement, Survivor, and Medicare programs. We're committed to ensuring that our customers get their payments or coverage promptly." 6 Million, that's a lot. And consider their stated goal. To me this is reassuring.

Good luck!

[SpringIsHereVA]

[2/19/25] @fffred , yes I had applied online 4 months ahead of tirning 62 in 2020. Had planned on working longer but COVID helped me out the door.

I may be wrong, but it is only going to get worst as STAFFING is an issue.

Best to have a BACK UP PLAN to pay bills these days.

Gone are the days when APPLYING for your RETIREMENT Social Security was easy.

Lol, now to HOPE I die BEFORE they either reduce or elimate.

@GailL1 , I seem to remember you saying 2035.

Anyway, excellent discussion!!! 👵

[GailL1]

@SpringIsHereVA wrote-

 @GailL1 , I seem to remember you saying 2035.

___________________

When I spoke about the panic that some people seem to be experiencing now, which may cause them to file early - I was referring to the current matters at hand NOT the time when the SSA Trust Fund is scheduled for an insolvency condition - that could be anyplace between 2032 - 2035 or before/after depending on how recent changes to the programs for more benefits being paid out (elimination of the WEP/GPO) affects the Trust Funds.

The next Trustee Report of the SS Trust Funds and Medicare should be coming out in the next few months.  

[SpringIsHereVA]

[2/20/25] @GailL1 , I have no idea what you are referring to. All I was verifying with you was the date that Retirement Social Security will be in trouble IF a solution is not found. I could not remember IF the predicted date was 2035 = possible reduction in payments or elimination of it completely.

[GailL1]

@SpringIsHereVA 

The 2024 Trustee Report says:

The Old-Age and Survivors Insurance (OASI) Trust Fund will be able to pay 100 percent of total scheduled benefits until 2033, unchanged from last year's report. At that time, the fund's reserves will become depleted and continuing program income will be sufficient to pay 79 percent of scheduled benefits.

Social Security Trustee Report 2024 - Summary  

[SpringIsHereVA]

[2/20/25] Thanks @GailL1 !!! 👍

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[*** @GailL1 wrote:

@SpringIsHereVA 

The 2024 Trustee Report says:

The Old-Age and Survivors Insurance (OASI) Trust Fund will be able to pay 100 percent of total scheduled benefits until 2033, unchanged from last year's report. At that time, the fund's reserves will become depleted and continuing program income will be sufficient to pay 79 percent of scheduled benefits.

Social Security Trustee Report 2024 - Summary  ***]

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[fffred]

I believe that staffing issues (and paying for staff) will be an important point in the future (as it is now). Apparently the computer hardware and software used by the SSA are of retirement age themselves. It's likely that new systems would improve service as well as reducing overhead (though I wonder if it ever is really the case that overhead is reduced in this way, it seems that other costs come in).

To date, the SSA systems have been built to be robust, accurate, and immune to interference. Not all software is built to these high standards, so it's not like the SSA can go down to Best Buy and purchase 100,000 shrink wrapped boxes of SSA 3000 software application, Windows Version. But sometimes you have to spend money to make money...or to run your government. I hope that improvements planned for SSA systems will be as robust as those developed in the past. Let us hope!

[SpringIsHereVA]

[2/19/25] @fffred , I may be wrong 🙄, but I have felt that the USA's priorities are NOT us retirees.

While NO country is PERFECT, some DO care.

EVERYDAY seniors are fighting to live within their means while Retirement Social Security is being threatened.

Excuse me, but how are suppose to live once we are NOT able to RETURN to the workforce.

I could THIS YEAR 2025 if needed at age 67 soon. But I am fortunate to be healthy. NOT all seniors are and should NOT have to choose between being homeless and medical bills.

Just my 1/2 cent. 👵

[GailL1]

@SpringIsHereVA wrote - Excuse me, but how are suppose to live once we are NOT able to RETURN to the workforce.

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That’s where making decisions earlier in life pay off - Social Security was never suppose to be ones only retirement vehicle - in fact the more retirement income one has from multiple courses, the better the fairing during old age.

It isn’t like this comes upon us all of a sudden.

I know older people that have some rental income, or they have some small type job that they created to bring in extra money.  

The problem today seems to be that rent for those that have it has skyrocketed - probably more than they ever thought - It is imperative in retirement to be able to control ones cost and if you are paying rent then it is out of your control.

My biggest expenses now are (1) home, car and liability insurance and (2) landscape upkeep - got a very big yard.  I use to handle most of the yard stuff myself but no more.  In fact, I probably pay what many pay in rent monthly for my landscape upkeep.  I didn’t plan very well there but I love where I live even though is is rather rural - I don’t think I could handle living in an apartment or in a congested city area.  

[SpringIsHereVA]

[2/20/25] @GailL1 , some of us had retirement plans that fell through. Congrats on having a perfect retirement life in place.

[GailL1]

@SpringIsHereVA 

Sorry to hear that - there are some failsafe’s built into protecting the plans under certain circumstances 

A 401k plan is protected from your employer; under federal law, your 401k funds are held in a separate trust and cannot be accessed by your employer, even if the company goes bankrupt, meaning they cannot take your 401k money to pay off debts. 

Course nothing protects it if the bottom drops out of the market but I though employees were given a choice as to the investment and how volatile it is to the market whims.  

I know that sometimes people have to use the money they have saved for retirement for something else.  That’s really hard and disturbing.  Cause it is not easy to put it all back if one can even do that.  

Best plan is just to forget about it - cause it cannot be garnished or taken even in a lawsuit since it has a protected purpose in most every condition - 

[SpringIsHereVA]

[2/21/25] @GailL1 , I didnot post what I did to gain pity or go into any details (I like my privacy). I posted to hopefully remind us all (me included) to have compassion for everyone. Sometimes we forget that stuff happens and we have to have compassion for others. At our age (old), we already know about life and its challenges. Personally I do not judge and accept people for who they are. Also not my biz what they do or donot do.

[GailL1]

@SpringIsHereVA 

Really just wanted to give the info out in general - if something happens to an employer retirement plan there are recourses and protections that could help cause they have rules that they have to obey when it comes to these plans.

Of course, things can happen in ones life where they need money but since these funds are protected from lawsuits, collections, etc. then they should be the money of last resort.’ 

[BalbonisMoleskine]

Well said. For as long as I can remember (50+ years), financial advisers (e.g., Edward Jones), financial pundits (e.g., Dave Ramsey) and the SSA itself have been reminding people that SS is just one income source. As much as people like to get nostalgic about pensions, the amount of workers with a pension plan never got above 40%. So it was always a source of income for a minority.

Save early and often. 

[GAKKIEZ]

Most people have been encouraged to save for retirement (401k, etc,) for over 50 years as many pension plans were being reduced.

Some people took advantage of making a decision and saving for retirement while many others did not. It's sad so many made unwise decisions. (Some even tapped into home equity for loans to purchase cars or trips.)  We see it today with many young people going for immediate gratification (concerts, trips, frivolous spending) rather than planning for their future.

[GailL1]

@GAKKIEZ 

Heck even the IRS (government) encourages one to save for retirement - to the tune of FREE money, if you qualify.

IRS.gov- Retirement Savings Contributions Credit (Saver’s Credit) 

[BalbonisMoleskine]

You are fortunate to be healthy, so why not return to work -- at least part time -- to provide for those who are not healthy? Someday you will be too unhealthy to work. Who will provide your housing and health care?

[SpringIsHereVA]

[2/19/25] @BalbonisMoleskine , taking care of others is not my problem. Sorry!

I am choosing to be retired at age 67 this year 2025.

My daughter will be there for me in my old age. 💛

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[*** @BalbonisMoleskine wrote:

You are fortunate to be healthy, so why not return to work -- at least part time -- to provide for those who are not healthy? Someday you will be too unhealthy to work. Who will provide your housing and health care? ***]

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[BalbonisMoleskine]

Your daughter is capable of paying the $165,000 that a typical retiree will need for medical care that Medicare doesn't cover?

And what if something happened to her?

Can you live without SS? Remember that what you paid into SS was spent to provide SS benefits to your parents and grandparents. If today's workers says, "Taking care of others is not my problem," then who will pay your SS benefits?

[fffred]

@BalbonisMoleskine   @SpringIsHereVA did not say that her daughter was going to pony up the full amount of cash needed, on average, for elder health care. So it's a straw man argument.

Your point is valid that the OASDI payroll taxes paid by workers during their working years went to support then-current retirees. In one sense SS is a bit of a Ponzi scheme, by definition, but Congress needs to make certain that no one is left holding the bag at the end, like a Ponzi scheme would result in.

Some figures from the SSA, in 1940 there were around 159 workers for each retiree (159 workers putting money in, for each retiree drawing money out). In 2023 the ratio was about 2.8 workers for every retiree. It doesn't take a math genius to see that there's a potential problem here, regardless of political view. But the current direction of Congress doesn't seem to be supporting rational planning for the longevity of the Social Security system.

[SpringIsHereVA]

[2/20/25] Thanks @fffred , I had to "step away" to keep my very big mouth shut and respectful. 🙄

YOU WROTE: @BalbonisMoleskine @Spring2025 did not say that her daughter was going to pony up the full amount of cash needed, on average, for elder health care. So it's a straw man argument. 

[BalbonisMoleskine]

But if @Spring2025's daughter cannot or will not pony up the full amount of cash needed, on average, for elder health care, and @Spring2025 cannot cover the balance, who will? 

If today's workers say, "Taking care of others is not my problem," then who will pay for @Spring2025's SS and Medicare benefits? 

What happens to @Spring2025 if younger workers say: "When you reach the age where what you've received in SS and Medicare benefits starts to exceed what you paid in, you're on your own because taking care of you is not others' problem"?

Then what?

[SpringIsHereVA]

[2/19/25] @BalbonisMoleskine , enough of the "personal" = let's get back to the topic of @fffred 's discussion.

Goodnight! 😴

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[*** @BalbonisMoleskine wrote:

Your daughter is capable of paying the $165,000 that a typical retiree will need for medical care that Medicare doesn't cover?

And what if something happened to her?

Can you live without SS? Remember that what you paid into SS was spent to provide SS benefits to your parents and grandparents. If today's workers says, "Taking care of others is not my problem," then who will pay your SS benefits? ***]

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[BalbonisMoleskine]

But you made it personal. First you said, "I am fortunate to be healthy." And then you said, "Taking care of others is not my problem" and "My daughter will be there for me in my old age."

What about people who are not as fortunate? 

[BalbonisMoleskine]

SSA should be able to leverage software and hardware designed to meet other federal agencies' stringent requirements. For example, the Army, Navy and other DoD branches started using the same platforms as much as possible because it was cheaper and faster than requiring vendors to create bespoke products that had 95% of the functionality of what another branch already had. 

[fffred]

Modular software is a known thing. Been that way for ages.

[BalbonisMoleskine]

This is different from modular. 

[GailL1]

Good post and information.   

To add just one other small point - it seems a lot of people start their application around the beginning of the year so volume has most likely been very high.  Add to that the panic some are experiencing and there is a double whammy in the number of people applying all at the same time.