Update 9/3/14:
Social Security will resume practice of mailing annual benefit statements.
The Social Security Administration stopped mailing annual benefit statements back in 2011 to save $70 million on annual printing and mailing costs. They coupled this announcement with the launch of the “my Social Security” website that provides online access to the information formally found in the paper statements.
The problem is, after 3 years of promoting the website, only 13 million people created accounts. That’s an impressive number, but it only represents 6% of the nation’s workforce. When the shift to online records was first announced there was significant outcry that the site would not be accessible to low-income, disabled, and elderly citizens. It would appear these segments weren’t the only groups averse to tracking their benefits online.
Beginning this month the SSA will resume mailing paper statements every 5 years to workers from ages 25 to 60. However, those already registered for online statements will continue to receive only the electronic version. After age 60 you will receive one paper statement each year.
Original Story from 2012:
In 2011, the Social Security Administration discontinued mailing annual earnings statements to all Americans. The decision was billed as a cost-cutting move that would save the agency millions. However, what the SSA did not expect was an avalanche of complaints from the general population, who felt denied of their right to important information.
Fast forward to May 2012 where it seems the administration has finally given in. The newly launched My Social Security website gives everyone instant access to their personal Social Security data, including lifetime earnings and potential benefits as they are currently recorded.
This new online feature provides a similar service to the paper statements that were once mailed out annually. It is accessible to anyone with a Social Security number who is 18 years of age or older. Registration is done directly through the website and the following information can be found once you are logged in…
– Your Lifetime Social Security Earnings
– Estimated Benefits for Retirement, Disability and Survivors
– Estimated Taxes Paid for Social Security and Medicare
– Additional Planning Information for Retirement and Medicare
Of course some of the population does not have access to a computer or the internet. For this reason the SSA has reinstated the mailing of paper statements. Workers will now receive one statement at age 25, and then begin to receive annual statements at age 60 and beyond.
These new information outlets should once again provide the transparency that Americans expect from the government. Many were left with little more than a “guestimate” of their benefits holdings when the annual statements were halted in 2011. This made it difficult to plan for retirement because the information available was so limited.
So what do these changes mean for you? If you are nearing retirement age then it is recommended that your register at My Social Security as soon as possible to download your earnings statement and get an estimate of your retirement benefits. Use the information to project how much money you’ll need to sustain your current income after you leave the work force.
Also remember that any calculations you run today could very well change in the coming years. The Social Security trust fund had been in the news quite a bit in recent months because of its’ expected insolvency around the year 2033. Those retiring in 2014 do not need to worry about any upcoming changes since they will be grandfathered into the current system. However, anyone retiring outside of this date could face unexpected changes to their benefit levels.