What Challenges Will Social Security Present to the Soon-To-Be-Eligible?

Perry Clark
Perry Clark
Published on June 11, 2022

Learn about challenges with social security affecting your clients.

Social security is a helpful program for many seniors. But there are also challenges within the program that affect your policyholders. As people are becoming close to eligible for social security, they will likely have many questions — and there are important decisions to make.  

Read on to understand what challenges social security will present to the soon-to-be eligible, then reach out to us at American Senior Benefits for more information. 

2022 Social Security Challenges 

People almost eligible for social security benefits may have many questions and face challenges as they make decisions about their benefits. As their agent, you are uniquely positioned to help them review their options and understand their benefits. 

Some common social security challenges newly eligible individuals face include: 

  1. Deciding when to start taking social security benefits. People have choices about when they begin taking their social security benefits. The government allows people to start their benefits at age 62. But the full retirement age is 70, so people can delay benefits up until that time. Those who do start taking their benefits before age 70 receive less per month until they reach full retirement age. 
  1. Understanding cost-of-living increases and their impacts. The cost-of-living increase in 2022 was almost 6%, which was the largest increase since the early 1980s. There is generally a COLA annually that increases social security payments. This could be confusing to some clients not expecting an increase. 
  1. Factoring in Medicare premiums. Medicare Part B premiums increased in 2022 due to inflation. This payment usually comes directly out of social security benefits so beneficiaries may be affected by this when they see their check is less. 
  1. Limitations on social security benefits based on working status. If someone continues to work on a limited or part-time basis before they have reached full retirement age, their social security income will be affected. This does not mean the individual loses money, rather it is held until they reach full retirement age. 

How To Help Seniors With Social Security Challenges 

As their agent, you can help your senior clients and those approaching eligibility with their questions and concerns. Take the time to learn about social security and Medicare changes and annual updates. Make sure you understand the changes so you can explain them to your clients and their families. 

Meet with your clients before they become eligible for social security to help them plan ahead. People become eligible at age 62, while many are still active in the workforce. Take the time to meet with them to discuss their options, like waiting until they reach full retirement age to begin collecting benefits rather than starting at age 62. You can help them talk through the benefits and drawbacks of both options. 

Some people are intimidated by using the internet to find information, so you can help your senior clients do research on the social security and Medicare websites. If your clients need help understanding how to apply for benefits or what documentation they need, you can help them with those questions. 

Do not forget to follow up after your clients have enrolled in social security. Reach out to make sure they have started receiving their benefits and answer any questions they may have. Check in periodically, especially during their first year of receiving benefits. 

How Do I Learn More?
To learn more about social security challenges for your senior clients, contact us at American Senior Benefits. Our affiliated experts will be happy to answer any questions you have.

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