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Report: Americans Overwhelmingly Support Social Security

Takeaways

• A new report finds that Americans overwhelmingly support preserving and strengthening Social Security benefits, even if it means paying more to address the program's long-term financing gap.

At a time when the nation is deeply divided across political lines, Americans can agree on at least one thing: Social Security benefits should not only be preserved but strengthened — even if that means they have to pay more to address the program’s long-term financing gap.

A new report, published as Social Security turns 90, finds that Americans overwhelmingly view Social Security benefits as a vital part of their retirement security and the financial well-being of seniors.

They express broad support for increasing revenues to strengthen Social Security rather than cutting benefits, with a preference for raising taxes on higher earners. Americans also value Social Security disability benefits and want to make sure they can rely on them if needed.

Social Security Turns 90

The Social Security program enters its 90th year in 2025. The largest single program in the federal budget, Social Security makes up approximately one-fifth of total federal spending.

Initially created to provide retirement income for workers over the age of 65, Social Security is funded through payroll taxes paid by workers and their employers. The program has undergone several changes over its nine-decade history in an effort to adapt to evolving economic and demographic realities while retaining its core mission of providing financial protection for our nation’s people.

Today, Social Security is a vital source of income for millions of retirees, disabled workers, and their family members. According to Social Security Administration (SSA) statistics from January 2025:

• Nearly 73 million Americans receive Social Security benefits.
• Most of these recipients (56 million) are adults aged 65 or older.
• More than 51 million retired workers receive benefits, in addition to 1.86 million spouses of retired workers and 714,000 children of retired workers.
• Survivor benefits are paid to 5.78 million children, widowers, and parents of deceased workers.
• Social Security Disability Insurance (SSDI) benefits are provided to more than 8 million Americans, including disabled workers, their spouses, and their children. Twelve percent of all Social Security benefits are disability benefits.
• Another 7.42 million people across the United States receive Supplemental Security Income (SSI) benefits. More than half of them are adults aged 18 to 64, while a third are 65 or older.

SSA describes Social Security as “one of the most successful anti-poverty programs in our nation’s history.” It is a crucial safety net for many older Americans, especially those with limited income.

Nearly nine out of 10 seniors received benefits in 2024, representing approximately 30 percent of the total income of older Americans.

For around half of seniors, Social Security provides at least 50 percent of their income; for about one in four seniors, Social Security provides at least 90 percent of their income. The average monthly benefit amount for retired workers is $1,975.34, or just over $23,700 annually.

The Center on Budget and Policy Priorities (CBPP) estimates that, without Social Security, almost 4 in 10 seniors would have incomes below the official poverty line.

Financing Gap Threatens Social Security Benefits

Social Security has a pay-as-you-go structure that means today’s revenues fund benefits paid to current recipients. Funds are deposited into two trust funds: the Old-Age and Survivors Insurance (OASI) Trust Fund and the Disability Insurance (DI) Trust Fund.

Reserve funds, generated when program revenues exceed benefits, are kept in the trust funds and invested in U.S. government securities, such as bonds. These reserves supplement revenues to meet the government’s payment obligations.

The last significant changes to Social Security were made in 1983 under President Ronald Reagan to address the looming insolvency of the trust funds. Raising the retirement age and other reforms were expected to extend the solvency of the trusts by 75 years, and from 1983 to 2009, Social Security ran a surplus. But since 2010, Social Security revenues have fallen below outlays and the trust funds are being depleted, mainly because more Baby Boomers are retiring.

According to a 2024 trustees report, Social Security trust fund reserves are projected to run out in 2035. At that time, revenues would only cover about four-fifths of scheduled benefits. To make up the difference, Social Security benefits would need to be reduced by about 20 percent to 25 percent.

Only Congress has the authority to modify the Social Security program and ensure its long-term viability. However, there are only two general options for reforming Social Security: reduce program costs by lowering current or future benefit amounts for some or all groups of beneficiaries, or increase program revenues, either by raising taxes or adding new sources of revenue.

Americans’ Views on Social Security

It is amid this backdrop that the National Academy of Social Insurance, AARP, the National Institute on Retirement Security, and the U.S. Chamber of Commerce conducted a survey to gauge Americans’ preferences about how to fix Social Security’s long-term financing gap. Their findings are published in a new report released in January 2025.

Social Security at 90: A Bipartisan Roadmap for the Program’s Future finds that Americans are united in their support for Social Security and their desire to see it strengthened. Some of the key takeaways are:

• Social Security is crucial for Americans’ retirement. Across demographics, 81 percent of future retirees say it will be important to their monthly income.
• Most Americans favor strengthening the program’s finances through increased revenues. Eighty-five percent of respondents want to either maintain current benefits or increase them, even if it requires raising taxes on some or all Americans.
• They prefer changes that close the financing gap and improve benefits. The favored plan includes:
  • Removing the payroll tax cap for earnings over $400,000
  • Gradually increasing the payroll tax rate from 6.2 percent to 7.2 percent
  • Adjusting COLA to better reflect inflation and the spending habits of older adults
  • Providing a caregiving credit for those caring for children under 6
  • Offering a bridge benefit for older workers with physically demanding jobs
  • Reducing benefits for high-income retirees
• SSDI and SSI protections are valuable to many Americans. The vast majority (90 percent) say that SSDI would be important to their income if they experienced a work-limiting disability, including 71 percent who said it would be “very important.”
  
  Americans also express strong bipartisan support for reforming SSI, which provides modest income support to low-income Americans who are 65 and older and/or disabled and have very limited resources. SSI is not funded by the Social Security trust funds and its rules, including a $2,000 asset limit, have not been updated in decades.

Beyond these main findings, Americans favor of the following Social Security reforms:

• Using general government tax revenue to fund Social Security. Two-thirds of respondents support this idea.
• Increasing administrative funding for the SSA. SSA staffing is at its lowest level in 50 years. Americans favor giving SSA increased administrative funding — a move that could improve customer service and wait times for disability claims — by a 2-to-1 margin.
• Eliminating taxes on Social Security benefits: Beneficiaries with significant non-Social Security income pay taxes on part of their benefits if their total income exceeds a set threshold, a policy that affects around 40 percent of current beneficiaries. Around half of respondents support ending this tax and 33 percent oppose ending it. President Trump has proposed eliminating taxes on Social Security benefits.
• Raising SSI asset limits. Two-thirds of respondents support increasing SSI asset limits.

Closing Thoughts

The report concludes that “The message to Washington is clear: rather than see the gap closed by reducing benefits, Americans want to see Social Security secured and strengthened through additional revenues, and they are willing to pay more to bolster the program’s finances.”

AARP’s Chief Public Policy Officer said that the survey shows “virtually all Americans want their Social Security benefits to be preserved and are willing to do what it takes to ensure the program continues to provide meaningful support for future generations.”

The CBPP stresses that there is “no imminent crisis” in the Social Security system, and lawmakers have time to put the program on solid financial footing. However, it also notes that changes should be made as soon as possible to give workers enough time to plan their work, savings, and retirement.

If you’re concerned about the future of Social Security, there are steps you can take in older adulthood to reduce your reliance on the program and improve your retirement security. For one, start working with a financial advisor and elder law attorney. A 2023 study found that working with a financial advisor can be helpful. An elder law attorney has a role to play as well.

Find a local attorney who can help you understand the different Social Security benefit programs and work with you to create a plan that gives you financial independence into your later years.

Social Security Overpayment Rules Are Changing Once Again

Takeaways

• Social Security benefits recipients who receive overpayments after March 27, 2025, will have their entire monthly benefit withheld until the overpaid amount is fully recovered.

For the past year, Social Security beneficiaries have gotten a break from the sometimes-devastating policy of withholding 100 percent of benefits if the beneficiary was overpaid. Effective March 27, 2025, the Social Security Administration (SSA) will reinstate the 100 percent policy to recover overpayments, reverting from the previous 10 percent withholding rate established in early 2024. This change is anticipated to recoup approximately $7 billion over the next decade.

Reasons for the Policy Reversal

The SSA says its decision to revert to full withholding stems from a commitment to safeguard taxpayer dollars and ensure the integrity of the Social Security trust funds. Acting Commissioner Leland Dudek emphasized the agency’s responsibility to be diligent stewards of public resources, noting that returning to full withholding aligns with practices from the Obama administration and first Trump administration.

Overpayments can occur due to various factors, including changes in a beneficiary's income, marital status, or living arrangements that are not promptly reported or processed. By reinstating the 100 percent withholding rate, the SSA aims to expedite the recovery of these funds, thereby maintaining the program's financial health.

Effects on Social Security Benefits Recipients

Under the new policy, individuals who receive overpayments after March 27, 2025, will have their entire monthly benefit withheld until the overpaid amount is fully recovered. This measure does not affect those already repaying overpayments under the previous terms; their repayment arrangements will remain unchanged. Note that the withholding rate for Supplemental Security Income (SSI) overpayments will remain 10 percent.

Beneficiaries facing financial hardship due to full withholding can request a reduced recovery rate by contacting the SSA. They also retain the right to appeal the overpayment decision or seek a waiver if the overpayment was not their fault and repayment would cause financial distress. The SSA will pause recovery efforts while an appeal or waiver is under review.

Introduction of the Social Security Overpayment Relief Act

In response to concerns about the SSA’s overpayment recovery practices, U.S. Representatives Kristen McDonald Rivet (R-Mich.) and Zach Nunn (R-Iowa) recently introduced the Social Security Overpayment Relief Act to limit the SSA’s overpayment lookback period to 10 years. Senators Ruben Gallego (D-Ariz.) and Bill Cassidy (R-La.) introduced a companion bill in the Senate. This proposed legislation aims to limit the SSA’s overpayment lookback period to 10 years, thereby capping the timeframe during which the agency can reclaim funds from beneficiaries.

Currently, the SSA can seek repayment for overpayments indefinitely, potentially burdening beneficiaries with debts stemming from errors made decades earlier. The indefinite lookback period has led to collection notices totaling tens or even hundreds of thousands of dollars, causing significant financial strain for affected individuals.

The proposed 10-year limitation would apply to recipients of Social Security retirement benefits, Social Security Disability Insurance (SSDI), and SSI. However, this limitation would not extend to cases involving fraud or criminal activity.

Sen. Gallego emphasized that seniors should not be held accountable for the government’s long-standing errors, advocating for a fairer approach to overpayment recovery.

Overpayment of SSA Benefits

Social Security benefits recipients may get an overpayment when there’s a change in their life. For example, they may have married but the SSA then doesn’t update its system right away or makes a mistake. In some cases, the SSA may not uncover these errors until years later. When the SSA finds a long-running overpayment, it can be hard for the individual to pay it back.

If you receive notice of a Social Security overpayment after March 27, 2025, and cannot afford to repay it in full, contact the SSA at 1-800-772-1213 or visit your local SSA office. You may also want to contact your elder law attorney. They will be able to offer you guidance on how best to respond.

Your Social Security Benefits for 2025: COLA Update

The Social Security Administration (SSA) has officially released its annual cost-of-living adjustment (COLA) figures for 2025. These newly issued numbers will have an impact on monthly Social Security benefits payouts for retirees, as well as recipients of Social Security disability benefits and survivor benefits, over the forthcoming year.

The COLA Change From 2024 to 2025

In 2024, monthly payments for Social Security benefits recipients bumped up slightly from the previous year, when the COLA was increased by 3.2 percent.

Come January 1, 2025, retirees are on track to see their Social Security benefits checks rise slightly once again, by 2.5 percent, or an average of about $50 per month. This will bring the average payout per month for retirees to $1,976.

COLA tends to shift annually based in part on the consumer price index. Its purpose, according to the SSA, has been to help ensure that the purchasing power of these federal benefits keeps up with inflation over time. Automatic annual cost-of-living adjustments first went into effect in 1975.

The COLA increase over the past 10 years has been about 2.6 percent on average.

Supplemental Security Income (SSI) Benefits

Recipients of Supplemental Security Income (SSI), a federal safety net program for roughly 7.5 million seniors and people with disabilities nationwide who have limited resources, will also benefit from the latest cost-of-living adjustment, starting in late December. As of 2024, the maximum monthly federal SSI payout is $943 per individual. The new maximum monthly federal SSI payout will be $967 per individual.

Notifications Coming in December

If you are one of the more than 72 million Americans who receive Social Security benefits, keep an eye on your mailbox for an envelope from the SSA, which will send out notifications beginning in December. The notice will outline for you how much you can expect to receive in your monthly check starting in 2025. Note that payouts may vary for different individuals based on numerous factors, such as your age and past work earnings.

For further information on the 2025 changes to Social Security benefits, visit the SSA fact sheet. Access your COLA notice online by logging into your my Social Security account starting in December.

my Social Security Transitions to Login.gov

A free and secure online account can be used to manage Social Security benefits. Account users can also check application status, request a replacement Social Security card, and view notices online. By 2022, more than 64 million people had a my Social Security account, per the Social Security Administration (SSA) blog.

On July 12, 2024, the SSA announced a change affecting many account users. Those who created a my Social Security account before September 18, 2021, must transition to a different type of online account known as a Login.gov. With a Login.gov account, you can continue to access to the SSA’s online services.

According to the SSA’s press release, over 5 million users have already transitioned to a Login.gov account.

The Reason for the Change

The Administration pointed to several reasons for the change, including simplification, compliance with federal standards, and security. The new Login.gov sign-in experience should be easier for users to navigate and intends to modernize users’ online access across agencies.

After providing reassurance that my Social Security is safe, Social Security Commissioner Martin O’Malley emphasized that the change seeks to improve coordination across agencies.

“my Social Security is a safe and secure way for people to do business with us,” Social Security Commissioner O’Malley stated. “We’re excited to transition to Login.gov to access our online services, streamlining the process and ease of use for the public across agencies.”

How to Transition Your Account

To transition your account to Login.gov, sign in to your my Social Security account. Then, you will see a prompt to transition to Login.gov. After linking your account, you should see a confirmation screen. You should then have immediate access to your my Social Security or other services.

If you already have a Login.gov account, you do not need to take any action.

Is the Login.gov Notification a Scam?

You should always be wary of potential scams, particularly when encountering requests to update your credentials online. Fortunately, the notice prompting users to transition to Login.gov is not a scam, but a legitimate announcement from the SSA.

If you have questions about whether you are transitioning your account correctly, consider using the SSA’s resources for help.

Help With Your Account

Although the SSA attempts to make the transition easy, some may encounter difficulties or have questions. For assistance, visit Help | Login.gov, where you can access the 24/7 customer phone and chat support.

Does Divorce Affect Social Security Spousal Benefits?

More than 50 million Americans receive Social Security retirement benefits. Most of these recipients are retirees who worked and paid Social Security taxes. But millions of dependents and survivors of retired workers, including spouses and ex-spouses, also receive a monthly benefit from Social Security.

Spouses can collect Social Security benefits based on their fellow spouse’s work records. These benefits are also available to divorced spouses who meet certain criteria, even after their ex-spouse has remarried. Divorced spouses are entitled to survivor benefits as well in some situations.

Social Security Auxiliary Benefits

Social Security provides monthly benefit payments to retired and disabled workers. It also pays dependent benefits and survivor benefits — collectively known as auxiliary benefits — to the spouses, former spouses, children, parents, and widows/widowers of retired, disabled, and deceased workers. In fact, more than 30 percent of new Social Security benefit awards in 2020 were auxiliary benefits.

Retirement benefits make up the lion’s share (78.9 percent) of Social Security payments. Retired workers collect most of these payments (75.1 percent), according to Social Security Administration (SSA) data. But the spouses of retired workers are the second most common recipient of Social Security retirement benefits.

As of March 2024, about 1.8 million spouses of retired workers — most of them women — received Social Security benefits averaging $911 per month. Divorced spouses comprise approximately 12 percent of all spousal benefit awardees.

Social Security benefits are also available to surviving spouses. The survivor’s benefit is based on the deceased spouse’s lifetime earnings.

Survivor benefits make up about 8.6 percent of all Social Security benefits, with monthly payments totaling $8.7 million and an average payment of just over $1,500 per month. Widows and widowers comprise about 65 percent of survivor beneficiaries.

In a 2021 report, the Congressional Research Service notes that spousal and survivor benefits were added to the Social Security system in 1939, when the majority of U.S. households consisted of a single earner, generally the husband.

Despite most women now working full-time — and increasingly out-earning their husbands — women are vulnerable to poverty in old age, says the report. This is attributed to demographic and economic reasons that include a longer average lifespan, lower labor force participation, and an “earnings gap” that can lead to women receiving a lower Social Security benefit than men.

Social Security Spousal Benefits

To address the benefit disparity between men and women, while accounting for women’s now much-higher labor force participation and the increase in the number of divorces, the SSA has over the years modified how it administers Social Security spousal benefits. This includes allowing same-sex spouses to receive spousal benefits in the same way as opposite-sex spouses.

Today, many individuals who qualify for spousal benefits do so based on their spouse’s work records and their own work records.

As a spouse, you can claim Social Security benefits based on your own earnings record. Or you can collect a spousal benefit up to 50 percent of your spouse’s Social Security benefit.

Those who qualify for both do not receive both in full, but they are automatically entitled to whichever benefit is higher, and they can collect on their spouse’s record even if they never worked.

You are eligible to receive Social Security spousal benefits when you turn 62 years old if your spouse is receiving retirement or disability benefits. However, if you choose to receive spousal benefits before you reach full retirement age (age 67 for anyone born in 1960 or later), your benefit amount will be permanently reduced.

These rules don’t apply to some child caregivers. If you are caring for a child younger than 16, or who has a disability and is entitled to receive benefits on your spouse’s record, you can qualify for Social Security spousal benefits at any age. Having a qualifying child in your care also means that you’ll receive your full spouse’s benefit even if you are under full retirement age.

Spouses who do not have a qualifying child in their care and begin receiving benefits before full retirement age can use this calculator to see how much their spousal benefit will be reduced.

Social Security Benefits for Divorced Spouses

As a divorced spouse, you can collect benefits on your ex-spouse’s record, even if the ex-spouse has remarried and the ex-spouse’s new spouse is collecting on the same record.

To qualify for a divorced spouse Social Security benefit, you must meet the following requirements:

• You were married for at least 10 years (although the marriage could have been briefly interrupted by divorce during this period; see below).
• You are currently unmarried.
• You are at least 62 years old.
• Your ex-spouse is eligible for retirement benefits.
• The benefit you are entitled to receive based on your own work record is less than the benefit you would receive based on your ex-spouse’s work record.

If your ex-spouse has not yet applied for retirement benefits but can qualify for them, you can receive benefits on their record, provided you have been divorced for at least two continuous years.

And if you are eligible for both a spouse’s benefit and your own retirement benefit, you may have a choice between the two benefits, depending on your age, explains the SSA.

Any Social Security benefits that you receive on an ex-spouse’s record may be reduced by you continuing to work and/or receiving a pension from a government employer that wasn’t required to withhold Social Security taxes.

Divorced Spouse Benefits and Remarriage

If you remarry, you generally can't receive benefits on your former spouse’s record unless the new marriage ends (by death, divorce, or annulment). In such cases, you can claim benefits on either spouse’s record, as long as each marriage meets eligibly requirements (it lasted at least 10 years, etc.) for divorced spouse benefits.

In limited cases, remarriage does not end benefits obtained on the record of a living former spouse. One of these exceptions applies if you remarry the same person.

A marriage to the same spouse could be interrupted by divorce and remarriage and still qualify for divorced spouse benefits if the remarriage took place no later than the calendar year immediately following the calendar year of the divorce.

According to AARP, remarriage also may not terminate your ex-spouse benefits if your new spouse is receiving survivor benefits, divorced spouse benefits, or childhood disability benefits.

Social Security Survivor Benefits for Divorced Spouses

The divorced spouse of a worker who has passed away could be eligible for Social Security payments equal to a surviving spouse benefit. To receive a survivor benefit as a divorced spouse, your marriage must have lasted 10 years or more and you must meet these other requirements:

• You are at least age 60 (or between 50 and 59 if you have a disability).
• You are not entitled to a Social Security benefit on your own work record that is equal to or higher than a benefit from your deceased ex-spouse.
• You are unmarried (unless you qualify for an exception).

The 10-year marriage requirement does not apply if you are caring for a child under age 16, or who has a disability, and the child qualifies for benefits on your former spouse’s record. The child must also be the natural or legal adopted child of your former spouse.

Survivor benefits are equivalent to the deceased worker’s full Social Security benefit amount. However, there is a maximum family amount—typically between 150 percent and 180 percent of a worker’s full retirement benefit—that survivors can collectively receive each month.

The SSA states that a benefit paid to a surviving divorced spouse will not affect the amount of benefits other surviving family members can receive, unless the ex-spouse is a divorced parent caring for the child of a deceased worker, in which case their benefits could affect the benefits of other survivors.

Divorced widow/widower payments are also subject to these SSA rules:

• If you remarry before age 50 you can't collect survivor benefits unless you divorce.
• If you remarry between ages 50 and 59 you aren’t eligible for survivor benefits.
• If you remarry after age 60 you can still receive survivor benefits based on your former spouse’s record. But if your new spouse is also collecting Social Security benefits, and you would receive a higher amount based on the new spouse’s work record, you will receive the higher amount.

Once you reach full retirement age and are eligible for both a survivor benefit and your own retirement benefit, you can choose to take survivor benefits first, letting your own benefits vest and then switching to retirement benefits later if that benefit is larger.

Surviving divorced spouses cannot apply online for survivor’s benefits. Contact the SSA at 1-800-772-1213 (TTY 1-800-325-0778) to request an in-person appointment at your local Social Security office.

You can use this screening tool to determine your eligibility for the different Social Security benefit programs. You may also benefit from consulting with your elder law attorney. They can help you choose the benefit option that works best for your situation.

Most US Workers Say They Will File for Social Security Early

To secure the maximum amount in monthly Social Security retirement benefits, Americans must wait until full retirement age to start receiving their payouts. Results from a 2023 survey show that most of today’s workers know about this stipulation – and yet the vast majority say they’re willing to file for their Social Security benefits early anyway.

UK-based wealth management company Schroders surveyed 2,000 working Americans to learn more about their readiness for and perspectives on retirement. The results showed that a mere 10 percent of respondents said they plan to hold off until age 70 to take their Social Security benefits. This is the case even though 72 percent of them are aware their payments could be higher if they waited.

Why Are So Many People Willing to Give Up More Income?

Many of the survey participants – roughly 44 percent – said they worry about Social Security running out of funds. Their fears may not be entirely unfounded. The Social Security program has served as a safety net for millions of retirees, providing monthly benefits since 1940. However, based on some projections, timely payments may not be possible beyond 2037.

Another 36 percent of the respondents said they would take benefits earlier because they need the money sooner.

These fears, said Deb Boyden, head of US defined contribution at Schroders, reflect “a crisis of confidence in the Social Security system.”

“Fear about the stability of Social Security has people walking away from money that could improve their quality of life in retirement,” she said.

Other Key Findings

• Nearly half of all survey respondents (49 percent) acknowledged that they do not have any strategies in place for retirement income.

• Less than a quarter (24 percent) of those aged 60 to 67 who are still in the workforce said they believe they’ve accumulated sufficient retirement savings.

• Among respondents aged 45 and older, 69 percent say they fret over money daily – on average, 1.6 hours every day. More than half of this same group (53 percent) said they worry that stress over finances will have a negative impact on their overall health.
   
• Retirees who’d worked with a financial planner had higher average monthly incomes than those who had not sought out the help of an advisor ($5,075 per month versus $3,000 per month). Those who had set up a formal financial plan received nearly twice more per month on average in retirement – about $5,810.

Find more information on the survey results online.

Getting Social Security Checks While Living Overseas

Many retirees look forward to traveling in their retirement. More and more are actually retiring overseas, in part as a way to stretch savings. But what happens to retirees' federal benefits while they are out of the country?

The short answer is that although Social Security benefits are available to retirees in other countries, Medicare is not. In this installment we look at Social Security. 

Medicare vs. Social Security Benefits When Living Abroad

Unlike with Medicare, retirees who decide to move to another country can still receive their Social Security benefits. Once a retiree has been outside the country for 30 days in a row, they are considered outside the U.S., and the rules for collecting benefits apply.

The Social Security Administration (SSA) will send checks to anyone living abroad who is eligible for benefits. However, the SSA is not allowed to send checks to several countries. Retirees who move to Cuba or North Korea cannot receive any checks while they are in either country, but they can get any withheld checks if they go to a country where paychecks can be sent.

In addition, the SSA generally does not send Social Security checks to Cambodia, Vietnam, or areas that were in the former Soviet Union (other than Armenia, Estonia, Latvia, Lithuania, and Russia). However, retirees may be able to apply for an exception. In such cases, retirees may have to agree to certain conditions, such as appearing in person at the U.S. embassy each month, to receive benefits.

Retirees who are U.S. citizens can continue receiving benefits for as long as they live outside the United States. However, citizens of other countries who receive Social Security may have some restrictions on how long they can receive benefits while outside the U.S.

The rules are quite complicated. The Social Security publication Your Payments While You Are Outside the United States explains in detail what restrictions citizens of individual countries face. The SSA also offers a payment screening tool that tells beneficiaries whether they'll be entitled to benefits if they remain outside the country for more than six months.

Retirees may have their checks directly deposited into a bank account in the United States, and direct deposit is available in some other countries as well. Using direct deposit avoids check-cashing and currency-conversion fees.

In countries with a large number of U.S. retirees, American embassies and consulates have individuals who are trained to provide Social Security services, including taking applications.

The countries are: Argentina, Australia, Austria, Belgium, Chile, Costa Rica, Croatia, Denmark, the Dominican Republic, Finland, France, Germany, Greece, Hong Kong, Ireland, Iceland, Israel, Italy, Jamaica, Korea, Japan, Mexico, the Netherlands, New Zealand, Norway, the Philippines, Poland, Portugal, Slovenia, Spain, Sweden, Switzerland, the United Kingdom, and Yemen. Individuals in other countries need to contact the SSA in writing or by phone. For a list of phone numbers, visit the SSA's webpage.

Social Security Taxes

The taxes on overseas Social Security benefits are the same as taxes on benefits for retirees living in the United States. Retirees who file individual tax returns and earn between $25,000 and $34,000 may have to pay taxes on up to 50 percent of benefits. Retirees with income over $34,000 may have to pay taxes on 85 percent of benefits.

Retirees filing jointly with a combined income of between $32,000 and $44,000 may have to pay taxes on 50 percent of their benefits. Joint filers with a combined income of more than $44,000 may have to pay taxes on 85 percent of their benefits. Combined income is the retiree's adjusted gross income plus nontaxable interest plus one-half of the retiree's Social Security benefits.

In addition to U.S. taxes, some foreign countries may tax benefits as well. To find out whether a country imposes taxes on Social Security benefits, contact the country's embassy in the United States.

The SSA provides information and resources on its International Programs webpage for retirees who are moving outside of the U.S.

What About Supplemental Security Income?

The rules for receiving Social Security overseas do not apply to Supplemental Security Income (SSI) benefits. Most recipients of SSI are not entitled to benefits outside the U.S. SSI benefits will stop if a recipient is outside the U.S. for more than 30 days, and benefits won't start up again until the recipient is back in the country for at least 30 days. However, there are exceptions for dependent children of military personnel and students studying abroad.

What Will Your 2024 Social Security Benefits Look Like?

In 2023, recipients of Social Security benefits saw the biggest increase in decades in their monthly checks. Although their payouts will indeed rise again in 2024, the cost-of-living adjustment (COLA) will be more modest – just 3.2 percent, versus the nearly 9 percent boost in 2023.

Does COLA Only Affect Retired Workers?

Each fall, the Social Security Administration (SSA) announces changes to the annual cost-of-living adjustment for the forthcoming year.

Based in part on the consumer price index, the COLA has an impact on Social Security payouts for retirees as well as many seniors and people with disabilities who receive disability benefits.

How Much Can You Expect to Receive?

In early December, the SSA begins notifying Social Security’s roughly 66 million beneficiaries about what their monthly retirement benefits checks will total as of 2024. These notifications go out via snail mail. How much each recipient gets in their monthly payout can vary depending on such factors as one’s age, employment history, and past work earnings.

If you don’t want to wait for your mail to learn the details, you can find out how much more you will be receiving in 2024 by visiting the My Social Security online portal in December. There, not only can you obtain details on what your 2024 benefits increase will look like, but you can also carry out numerous other tasks, including estimating your spouse’s Social Security benefits, reviewing your statements, opting out of some printed mailings, or updating your direct deposit information.

As a result of the latest COLA, the monthly amount retirees will receive in their 2024 Social Security checks will, on average, be $59 higher than in 2023 – about $1,907 (up from $1,848). This equals $22,884 per year for an individual recipient.

What About My 2024 SSI Payments?

If you are among the 7.5 million people who receive Supplemental Security Income (SSI), the announcement regarding COLA will also bring your payouts up by 3.2 percent.

So, in 2024, the maximum monthly SSI benefit will rise from $914 to $943. (Maximum monthly payouts for couples receiving SSI will be $1,415, up from $1,371.) These adjustments begin earlier, on December 29, 2023.

Are These Payout Increases Enough?

Many seniors have concerns about the failure of Social Security payouts in keeping up with rising prices for everything from prescription meds to groceries. They aren’t wrong; a 2023 survey showed that benefits have effectively resulted in a 36 percent loss in buying power since 2000.

Administrators of the survey give an example of the effects: A dozen eggs in 2023 cost $4.21 on average. In 2000, the cost hovered around a dollar – that’s an increase of more than 300 percent.

Get additional details on the 2024 Social Security changes on the SSA website.

What Is IRMAA and How Does It Affect My Medicare Premiums?

As we near retirement, we may assume that once Medicare kicks in, our medical insurance premiums will be fixed. However, many people may not realize that there are special rules regarding how much they pay for Medicare Parts B and D if they are in a higher income range.

What Is IRMAA?

If the Social Security Administration (SSA) determines you have a higher income, you will have to pay more for your Medicare Part B or Medicare Part D coverage. This surcharge  is referred to as the income-related monthly adjustment amount (IRMAA). It is paid in addition to your monthly premium amount.

Note that Medicare Part B pays for doctor visits, outpatient care, and related services. Medicare Part D is related to your prescription drug coverage.

How Is IRMAA Calculated?

To determine whether you must pay higher Medicare Part B or D premiums, the SSA bases the decision on your most recently filed tax return. Because of timing issues, this can often be your tax return from two years prior, as your most recent one may not yet be filed or in the IRS system.

If the SSA finds that you must pay a higher premium, they use a sliding scale based on your modified adjusted gross income (MAGI) to determine by how much. MAGI equals your total adjusted gross income and any tax-exempt interest income you have received in a tax year.

2023 IRMAA Brackets

The IRMAA 2023 threshold for married couples is $194,000. For any other filing status, the threshold is $97,000.

Once you cross these thresholds, you will pay more for coverage. How much more depends on how much you exceed these numbers. The SSA provides a chart to show you what you can expect in 2023.

The SSA calculates your IRMAA every year. So, while you may be subject to IRMAA for one year, you may not be subject to it the following year. If the SSA determines you will be subject to IRMAA, they inform you of this and its effect on your premium in writing.

How Will IRMAA Affect My Premiums?

Let’s start by understanding how IRMAA may affect your Medicare Part B and D premium. Usually, the split between SSA and you is 75 percent/25 percent. In other words, Medicare pays 75 percent of the premium, and you pay 25 percent. If you exceed the income thresholds, the split changes, and you may pay anywhere from 35 percent to the total cost, depending on your income level.

Again, refer to the SSA’s 2023 chart for your situation. So, for example, if you are filing taxes as a married couple and make between $194,000 and $228,000 in 2023, you will see on the 2023 chart that your Part B premium will increase by $65.90. Your Part D premium will go up by $12.20.

What If I Don’t Think I Should Be Subject to IRMAA?

What happens if your income listed on your most recently available tax return was much higher than what you are currently making or receiving? There is a way for you to inform SSA of the change in your finances.

For example, if you divorced, were laid off, or are making less money and you can document this, you can complete the Medicare Income-Related Monthly Adjustment Amount - Life-Changing Event form. This will inform SSA and ask them to reassess any imposition of IRMAA in your case.

You can also appeal the SSA’s decision where there was a change in your income but not necessarily in the form of a life event. For example, if you filed and IRS accepted an amended tax return for the year that is being used to calculate your IRMAA, you may be able to get the SSA to change its decision. Sometimes the SSA gets erroneous information about you from the IRS, and this may also be a basis to appeal.

There are a few different ways to appeal the SSA’s IRMAA determination. The appeal can be submitted in any of the following ways:

• online,
• in writing by completing a Request for Reconsideration, or
• through your local SSA office.

Speak With a Professional

If you have questions about IRMAA and your particular circumstances, it is best to speak with a professional. Timing matters, so seeking professional guidance as soon as possible after you receive notice of the IRMAA surcharge is essential.

The Powers and Responsibilities of Representative Payees

Do you have a friend or loved one who receives Social Security and is unable to manage her payments? If so, you can request that the Social Security Administration (SSA), the government agency that disburses Social Security, name you as the representative payee for that person.

Being a representative payee gives you the power and the responsibility to manage that money for your friend or loved one. (The Office of Personnel Management and the Railroad Retirement Agency also appoint representative payees, and the responsibilities are basically the same.)

As a representative payee, you only have the power to handle the Social Security benefit for your friend or loved one (the beneficiary) and not any other money or property for that person unless some other document or government agency appoints you to do so. 

It is important to remember that the check from the SSA is not yours; it belongs to the beneficiary. The beneficiary is supposed to get the benefit of the money. Your role includes performing four very important duties:

1. You must act only in the beneficiary’s best interest, which means the beneficiary’s money belongs only to them. You cannot pay yourself for managing their money, and you cannot borrow it or lend it to anyone else; those would be conflicts of interest, which you must avoid. You should also do your best to make sure the beneficiary does not get scammed or mistreated.
    
2. You must manage the beneficiary’s Social Security check carefully, which means you should make sure the beneficiary’s daily needs and any other foreseeable needs are met, bills are paid on time, and all taxes are paid.
    
3. You must keep the money from the Social Security check separate from your own money, which means you cannot keep the money in any kind of joint account or sign any contracts or leases for the beneficiary. If you have to open an account or sign anything for the beneficiary, sign “(beneficiary's name) by (your name), representative payee” so everyone knows you are acting on the beneficiary’s behalf.
    
4. You must keep good records of everything you do with the beneficiary’s money, which means keeping track of all money you spend for the beneficiary and keeping all receipts. Representative payees also have to file annual reports unless they are exempt. The following types of payees are now exempt from the annual accounting requirements: 

• Natural or adoptive parents or legal guardians of a minor child beneficiary who primarily reside in the same household as the child
• Natural or adoptive parents of a disabled adult beneficiary who primarily reside in the same household with the beneficiary
• Spouse of a beneficiary

Remember, there may be other people appointed to help the same beneficiary with other things. They have the same general four duties as you, and all of you must work together if that is in the beneficiary's best interest.

If you are not a family member and the beneficiary has family, you must keep family members informed about what you are doing for the beneficiary. This will reduce the chance that they will have problems with your actions. In the end, however, the decisions about the Social Security check are yours to make because you are responsible. You are the one who will get in trouble if something goes wrong. For example, if someone thinks you violated one of your four important duties, they can report you to the SSA. The SSA will investigate, and if it decides that you misused the beneficiary's money, it will make you replace what was lost out of your own pocket.

The SSA has created a Representative Payee Portal as a central gateway for individual representative payees with a my Social Security account to conduct their own business or manage direct deposit, wage reporting, and annual reporting for their beneficiaries.

If you have more questions about what it means to be a representative payee, check out www.ssa.gov/payee.

For more information, visit the SSA’s online guide for representative payees.