Changes to Social Security have some people worried about impact on retirees

From Yahoo Finance: 2025-05-14 05:00:00

Big changes are happening with Social Security, impacting 74 million retired senior citizens and disabled workers. The Trump administration controversially cut staff and phone services while increasing garnishments. Applying for benefits should be done up to four months in advance to ensure timely payments.

A significant concern is the impact of age bias on those forced to claim Social Security early due to job discrimination. Many retirees face involuntary retirement, leading them to claim benefits early. Delaying benefits until age 70 is financially beneficial, but not everyone can afford to wait.

The Social Security Administration is struggling to keep pace with timely service, prompting concerns about future service quality. Ageism in hiring leads many to retire early, with nearly half of workers expecting to work past 62. Most retirees report retiring earlier than age 65, often due to circumstances out of their control.

Roth conversions on retirement accounts can provide tax-free income in retirement. Shifting assets to a Roth IRA allows tax-free growth and withdrawals. Planning for future tax rates is essential, with smaller annual conversions recommended. Roth conversions are permanent and must be completed by December 31 for the current tax year.

Concerns about cuts to Social Security Administration services have sparked outrage, leading to a 25% increase in calls for help. Despite backing off phone service cuts, the situation remains dire. Experts are not optimistic about the future of SSA services, with staff reductions and computer system issues likely leading to continued delays and breakdowns.

Read more: Big changes to Social Security have some people worried. What to expect.