Social Security said solvent through next 40 years
By Jamie Anfenson-Comeau
Despite the baby boomer bubble that’s just starting to hit retirement age, Social Security Public Affairs Specialist Rose Fontenot said that the program should be safe for the next four decades, and is confident that lawmakers will find a way to save the program.
“Based on what we do know, the trust fund is secure for the next 40 years,” Fontenot told the Eunice Rotary Club, adding that it would be up to the nation’s lawmakers to find a way to keep the program going afterwards.
“There is still ample time for changes to be made,” Fontenot said, adding, “There are too many people who are dependent on Social Security; I’m confident the program will survive.”
Fontenot spoke to the Rotary Club last week about common misconceptions and questions regarding the Social Security program, and invited Rotarians to ask their own questions.
Given that much of the club’s membership is nearing or has reached retirement age, there were a lot of questions.
One of which is retirement age itself. Workers can retire at 62, but to receive their full retirement benefits, they must wait until their full retirement age, which varies.
For those born Jan. 1, 1938 or earlier, that age is 65. For those born Jan. 2 1960 or later, it’s 67. For those in between, the answer lies somewhere in the middle.
For example, someone born November 1956 would be able to receive full retirement benefits at the age of 66 years and four months.
“One question we get a lot is from people who want to retire, but they want to keep working,” Fontenot said. “We’re finding that people are working longer and longer now.”
According to Fontenot, once someone reaches their full retirement age, they can earn any amount of money and still draw their full Social Security benefits.
“If you haven’t reached your full retirement age, there is a limit. This year it’s $1,130 a month, or $13,560 a year,” Fontenot said.
Fontenot also said there’s a lot of confusion in regards to people who spent time working for an employer that doesn’t pay into Social Security, such as state employees and teachers.
“You can collect, but it may affect the amount we pay. The computations are done differently if you worked at some other job,” Fontenot said.
Fontenot said that a lot of information is available now on the program’s web site. There is also a user-friendly retirement calculator, and an online retirement application.
“That seems to be working well for a lot of people,” Fontenot said. “We serve St. Landry, Evangeline and parts of Acadia Parish and some people have to drive an hour to visit our office.”
The online application takes approximately 20 minutes to complete.
One thing the Social Security office can’t do is to provide financial advice. Fontenot said that in the past case workers were taught to give financial advice related to Social Security, but the program is getting away from that.
“We are trying to push financial literacy. There’s a lot of information on our web site, and we are encouraging people to speak with a financial advisor to help them make those kinds of decisions,” Fontenot said.