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There are millions of Americans today who rely heavily on Social Security to make ends meet. And it’s not just seniors who get benefits from the program. As such, you’d think the Social Security Administration (SSA) would be adding to its staff.
Instead, the SSA has been cutting staff and making changes to the way it handles cases on a national scale. And a new change coming in March could hurt millions of Americans in a very big way.
A big Social Security change is just around the corner
For a long time, Social Security field offices were set up to handle claims on a local basis. But beginning on March 7, the SSA is shifting away from this model to a centralized system where claims are handled on a nationwide level.
That’s a problem, though, because field office employees tend to be more familiar with local rules and are therefore better equipped to help seniors in their jurisdiction. Centralizing things might seem like a smart move on the part of the SSA. But in reality, it has the potential to cause chaos.
Critics are accusing the SSA of centralizing its systems to compensate for recent staffing cuts. Critics also warn that this new system could lead to backlogs in processing claims.
The SSA still claims that it relies on field offices heavily. It also claims that centralizing things will lead to improved workflows and better service.
But a lot of people aren’t convinced. And of course, the bigger issue is that when people call to talk to the SSA, the agents they get may not be well-versed in state programs and policies.
For example, Supplemental Security Income (SSI), which provides benefits to low-income older Americans, as well as the blind and disabled, has eligibility that can vary by state. It may be that the SSA will train all of its employees accordingly. But that’s questionable.
Social Security could be headed toward more unfavorable changes
In addition to the change above, another Social Security change could be on the horizon that hurts Americans even more. The program is at risk of having to cut benefits broadly in under a decade due to a pending financial shortfall.
Because Social Security’s future is precarious, and because the SSA’s system for handling claims could soon hit a rough patch, it’s best to try not to rely too heavily on those benefits for retirement. If you’re nearing the end of your career, assess your savings and see if you’re able to largely cover your costs on your nest egg alone.
This isn’t to say that benefits are going away, or that claiming them will be impossible once the SSA moves to its centralized system. It’s still more than possible to file for Social Security benefits online, and for savvy seniors, that’s generally the easiest and most efficient route.
But all told, Social Security does not seem to be headed in a positive direction. It’s best to get ahead of that by making sure you’re not too reliant on it.