Crisis looming on the horizon–Discover the pending problem of Social Security of 2025
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As we sail through the golden years, we often find solace in the stability that Social Security promises.
It's a fallback for many, a steady beacon in the twilight of retirement. But what happens when that beacon flickers?
Another potential Social Security delay is on the horizon–which could hit in 2025. What happened and how does this affect you?
The Social Security Administration (SSA), the guardian of our post-retirement peace, is facing a financial squall. If lawmakers don't agree on funding by the end of the year, customer services could be caught in the crosswinds of delay come 2025.
The root of the issue? A hiring freeze, implemented in November after Congress denied the SSA additional funding in its September continuing resolution.
These resolutions are stopgap measures to prevent government shutdowns, maintaining current spending levels until a full-year fiscal plan is hammered out.
The government agency ran into another problem in November following Congress denying them additional funding for its September continuing resolution.
House representatives threw a wrench in the works by blocking a budget anomaly request from the previous administration. This request aimed to increase the SSA's annual funding from $14.2 billion to $15.4 billion for the government's fiscal year 2025.
With the December 20 deadline looming for another stopgap bill, the fate of the SSA's funding hangs in the balance–uncertain if the same request will be granted to fund the agency through March 2025.
Should the funding fall short, the SSA's ability to deliver timely customer services could be severely compromised.
With staffing at a record low and beneficiaries at a record high, the agency is already stretched thin.
An SSA spokesperson warned that without an increased appropriation, employees could face up to 10 furlough days, potentially leading to office closures or reduced service levels.
According to the spokesperson, “"This means our field offices, card centers, and the National 800 Number would have reduced levels of service and further delay critical services that the public depends on.”
The agency has been forced to “operate conservatively,” restricting hiring and reducing overtime to historically low levels. This means no extra hours to assist those waiting in lobbies or to clear the mounting workloads.
Furthermore, the representative added, “We have been forced to restrict hiring to critical targeted areas and will not be able to invest in new information technology development.”
Despite the current challenges, there's a glimmer of hope. Under the leadership of former Commissioner Martin O'Malley, the SSA made strides in improving customer service operations.
Wait times on the 800 customer service number were slashed from 42 minutes to 16 minutes between November 2023 and November 2024, thanks to new technology and business practices.
The SSA's goal is to answer 800 number calls within an average of 12 minutes by the end of fiscal year 2025. But this progress is at risk if a funding solution isn't found.
By the end of fiscal year 2024, the SSA is expected to serve over 74 million beneficiaries, with significantly fewer staff compared to 2015.
“The loss of over 2,000 SSA employees will make it harder for people to get help, whether they're filing a claim, fixing an issue, or seeking guidance,” according to Antwyne DeLone, founder of VisionX Finance and ex-financial adviser.
So, the progress under O’Malley’s administration is hanging on the balance if no funding solution is found.
Long wait times and backlogs can exacerbate financial and emotional stress, especially for those already stretched thin.
In related news, find out the other solutions that Social Security chief O'Malley has been working on, especially when it comes to your benefits. Read more about this story here.
Have you experienced delays or issues with Social Security services? Are you concerned about the potential impact of underfunding on your retirement plans? Share your thoughts and experiences in the comments below!
It's a fallback for many, a steady beacon in the twilight of retirement. But what happens when that beacon flickers?
Another potential Social Security delay is on the horizon–which could hit in 2025. What happened and how does this affect you?
The Social Security Administration (SSA), the guardian of our post-retirement peace, is facing a financial squall. If lawmakers don't agree on funding by the end of the year, customer services could be caught in the crosswinds of delay come 2025.
The root of the issue? A hiring freeze, implemented in November after Congress denied the SSA additional funding in its September continuing resolution.
These resolutions are stopgap measures to prevent government shutdowns, maintaining current spending levels until a full-year fiscal plan is hammered out.
The government agency ran into another problem in November following Congress denying them additional funding for its September continuing resolution.
The Social Security Administration (SSA) may experience delays in customer services in 2025 if additional funding is not approved by lawmakers. Image source: Unsplash / Christian Langballe.
House representatives threw a wrench in the works by blocking a budget anomaly request from the previous administration. This request aimed to increase the SSA's annual funding from $14.2 billion to $15.4 billion for the government's fiscal year 2025.
With the December 20 deadline looming for another stopgap bill, the fate of the SSA's funding hangs in the balance–uncertain if the same request will be granted to fund the agency through March 2025.
Should the funding fall short, the SSA's ability to deliver timely customer services could be severely compromised.
With staffing at a record low and beneficiaries at a record high, the agency is already stretched thin.
An SSA spokesperson warned that without an increased appropriation, employees could face up to 10 furlough days, potentially leading to office closures or reduced service levels.
According to the spokesperson, “"This means our field offices, card centers, and the National 800 Number would have reduced levels of service and further delay critical services that the public depends on.”
The agency has been forced to “operate conservatively,” restricting hiring and reducing overtime to historically low levels. This means no extra hours to assist those waiting in lobbies or to clear the mounting workloads.
Furthermore, the representative added, “We have been forced to restrict hiring to critical targeted areas and will not be able to invest in new information technology development.”
Despite the current challenges, there's a glimmer of hope. Under the leadership of former Commissioner Martin O'Malley, the SSA made strides in improving customer service operations.
Wait times on the 800 customer service number were slashed from 42 minutes to 16 minutes between November 2023 and November 2024, thanks to new technology and business practices.
The SSA's goal is to answer 800 number calls within an average of 12 minutes by the end of fiscal year 2025. But this progress is at risk if a funding solution isn't found.
By the end of fiscal year 2024, the SSA is expected to serve over 74 million beneficiaries, with significantly fewer staff compared to 2015.
“The loss of over 2,000 SSA employees will make it harder for people to get help, whether they're filing a claim, fixing an issue, or seeking guidance,” according to Antwyne DeLone, founder of VisionX Finance and ex-financial adviser.
So, the progress under O’Malley’s administration is hanging on the balance if no funding solution is found.
Long wait times and backlogs can exacerbate financial and emotional stress, especially for those already stretched thin.
In related news, find out the other solutions that Social Security chief O'Malley has been working on, especially when it comes to your benefits. Read more about this story here.
Have you experienced delays or issues with Social Security services? Are you concerned about the potential impact of underfunding on your retirement plans? Share your thoughts and experiences in the comments below!
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