Readers of this column often send in questions about calculating their future Social Security benefits.
Sometimes they say they are writing to in hopes of getting a definitive answer after becoming frustrated with a Social Security Administration field office or telephone worker.
“I hope you can guide me because I receive different information each time I speak with a representative,” one such reader wrote recently.
Her husband had died four years earlier at 59. She said she was now 61 and trying to decide when to start collecting benefits. She was working part time and unsure how much longer her job would last.
She wanted to know if she could begin collecting a survivor benefit at age 62, then switch to her own retirement benefit at age 66 without having it reduced because she had claimed the widow’s benefit.
“In many cases a widow or widower can begin receiving one benefit at a reduced rate and then, at full retirement age, switch to the other benefit at an unreduced rate,” said Kia Green, an SSA spokeswoman.
Three SSA researchers, in fact, wrote an academic paper (fpanet.org/journal/currentissue/tableofcontents/widowedbeforeretirement) that laid out optimal claiming strategies for people widowed before reaching retirement age.
Sounds straightforward enough. So what conflicting information did the reader receive? I contacted the reader, who declined to respond to follow-up questions or provide more information.
Nevertheless, because enough readers have raised the issue over the years, I asked SSA spokesman Mark Hinkle whether the department tracks these types of complaints specifically and whether it is doing anything in response.
It doesn’t track them, Hinkle said.
“The fact that we don’t track them doesn’t mean they’re not being addressed, however,” he said. “We do try to remedy complaints every day in our field offices.”
Hinkle acknowledged that service complaints in general have risen as the department struggles to keep up with rising customer traffic and budget cuts.
“We’re down 7,000 employees in the last two fiscal years alone,” Hinkle said.
At the same time, Social Security disability claims have surged with the economic downturn, and more baby boomers are filing for regular Social Security benefits than predicted because they’ve been laid off and can’t find work, he said.
The trends have created a pressure cooker in field offices. In 2010, reports of threats against field office workers, guards or Social Security Administration buildings jumped 43 percent from the previous year, prompting an order for special safety training for workers, Hinkle said.
In short, Social Security benefits and claiming strategies are an important question to get answered, but field offices are stretched to their limits. If you’re not confident about the answers you’re getting, be a squeaky wheel until you are.
Here are some tips:
SSA’s official website, ssa.gov, has a wealth of information that explains how benefits are calculated, including what types of spousal or survivor benefits you may receive. There is a significant difference in the rules regarding spousal and survivor benefits, so keep them straight.
Your statement might not be in the mail. Those paper Social Security annual statements were killed in a 2011 budget-saving move, but people 60 and older were supposed to begin receiving them again in February. Hinkle said a new online statement is expected before fall. Scrutinize those statements to become familiar with your projected benefits but also to monitor the annual earnings record the SSA has on file for you. If you catch an error early on, it can be easier to correct than waiting until you file for benefits.
Don’t go it alone, Part I. If you go into a Social Security office to ask questions, don’t feel pressured to leave until you’ve gotten an answer and fully understand it, Hinkle said. Along the same lines, take along your spouse or a trusted family member or friend who can take notes on what a field office worker says. Have that person repeat to the worker what has been said so everyone understands.
Don’t go it alone, Part II. While a field office worker can get a benefits estimate based on your work record and can estimate spousal or widow’s benefits, they aren’t financial advisers, Hinkle said.
Private consultants and some online tools can help you maximize your benefits (one example: socialsecuritysolutions.com). And if you employ a financial adviser, ask him or her to run the numbers for you.
Have a retirement question? Write to yourmoney@tribune.com
