For years, advocates say the Social Security Administration has struggled to keep up with its growing workload. Its current staffing is already at a 50-year low, but President Donald Trump and adviser Elon Musk have set their sights on cuts: The agency plans to cut 7,000 jobs and close 47 offices, NPR reported.

That includes a planned 50% reduction in its tech team at a time when the agency’s long-glitchy technology is having more issues than usual, CNN reported.

To access their accounts online, many people are now being required to verify their identity using selfies or by traveling to a field office. Phone verification is not longer allowed, the San Francisco Chronicle reported.

That can present a challenge to seniors with mobility issues and those who might struggle with the required technological knowledge.

If you plan to visit a Social Security office in person, make sure you make an appointment over the phone first: Walk-ins are not allowed, according to the agency’s website.

One San Francisco Chronicle reader said he’s “given up” trying to access his account online after unsuccessful attempts trying to verify his identity using photos, videos, his driver’s license and other personal information.

The agency’s website was also completely down for several hours this week, CNN reported.

Others have faced astronomical wait times on the phone.

“My first phone call that I made to Social Security, I was on hold for 3 hours and 15 minutes before I spoke to somebody,” Aaron Woods, who’s been trying for months to help his mother sort out her Social Security and Medicare benefits, told NPR.

Another Chronicle reader was quoted a wait time of 100 hours on the phone.

AARP has pushed back against the identity verification change.

“The Social Security Administration’s move to force people to visit offices in-person for services that they have sought by phone will result in more headaches and longer wait times to resolve routine customer service needs,” Nancy LeaMond, AARP’s executive vice president and chief advocacy and engagement officer said in a statement.

The Chronicle offered the following tips: Those who have frozen their credit may need to temporarily unfreeze their Experian accounts in order to compete the Social Security identity verification process.

Some people have had issues using certain web browsers that send them on endless redirect loops. Microsoft Edge or an incognito window on Google Chrome may alleviate the issue.

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“Inflation has eaten up my savings,” she said. “I don’t have anything to fall back on — the cushion is gone.” So even with the anticipated increase she’s looking for work to supplement her retirement income, which consists of a small pension and her Social Security benefits.

About 70.6 million Social Security recipients are expected to receive a smaller cost of living increase for 2025 than in recent years, as inflation has moderated. The Social Security Administration makes the official COLA announcement Thursday, and analysts predicted in advance it would be 2.5% for 2025. Recipients received a 3.2% increase in their benefits in 2024, after a historically large 8.7% benefit increase in 2023, brought on by record 40-year-high inflation.

The AARP estimates that a 2.5 percent COLA would increase the average benefit for a retiree who receives about $1,920 a month by $48 a month starting in January 2025.

“I think a lot of seniors are going to say that this is not really enough to keep up with prices,” said AARP Senior Vice President of Government Affairs Bill Sweeney.

The silver lining is that it’s an indication that inflation is moderating, he said.

The announcement comes as the national social insurance plan faces a severe financial shortfall in the coming years.

The annual Social Security and Medicare trustees report released in May said the program’s trust fund will be unable to pay full benefits beginning in 2035. If the trust fund is depleted, the government will be able to pay only 83% of scheduled benefits, the report said.

The program is financed by payroll taxes collected from workers and their employers. The maximum amount of earnings subject to Social Security payroll taxes was $168,600 for 2024, up from $160,200 in 2023. Analysts estimate that the maximum amount will go up to $174,900 in 2025.

On the presidential campaign trail, Vice President Kamala Harris and former President Donald Trump have presented dueling plans on how they would strengthen Social Security.

Harris says on her campaign website that she will protect Social Security by “making millionaires and billionaires pay their fair share in taxes.”

Trump promises that he would not cut the social program or make changes to the retirement age. Trump also pledges tax cuts for older Americans, posting on Truth Social in July that “SENIORS SHOULD NOT PAY TAX ON SOCIAL SECURITY!”

AARP conducted interviews with both Harris and Trump in late August, and asked how the candidates would protect the Social Security Trust Fund.

Harris said she would make up for the shortfall by “making billionaires and big corporations pay their fair share in taxes and use that money to protect and strengthen Social Security for the long haul.”

Trump said “we’ll protect it with growth. I don’t want to do anything having to do with increasing age. I won’t do that. As you know, I was there for four years and never even thought about doing it. I’m going to do nothing to Social Security.”

Lawmakers have proposed a variety of solutions to deal with the funding shortfall.

The Republican Study Committee’s Fiscal Year 2025 plan has proposed cutting Social Security costs by raising the retirement age and reducing the annual COLA. Trump has not endorsed the plan.

Linda Benesch, a spokeswoman for Social Security Works, an advocacy group for the social insurance program, said “we are concerned about this Republican Study Committee budget, and the provisions in it that would cut benefits for retirees.”

Social Security Works endorsed Harris for president in July, in part for her decision as a California senator, to co-sponsor a bill that called on the Social Security Administration to use a different index to calculate cost of living increase: the CPI-E, which measures price changes based on the spending patterns of the elderly, like health care, food and medicine costs.

The COLA is currently calculated according to the Bureau of Labor Statistics’ Consumer Price Index, or CPI.

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WASHINGTON (AP) — Millions of Social Security recipients will get a 3.2% increase in their benefits in 2024, far less than this year’s historic boost and reflecting moderating consumer prices.

The cost-of-living adjustment, or COLA, means the average recipient will receive more than $50 more every month beginning in January, the Social Security Administration said Thursday. The AARP estimated that increase at $59 per month.

“This will help millions of people keep up with expenses,” said Kilolo Kijakazi, Social Security’s acting commissioner.

About 71 million people — including retirees, disabled people and children — receive Social Security benefits.

Thursday’s announcement follows this year’s 8.7% benefit increase, brought on by record 40-year-high inflation, which pushed up the price of consumer goods. With inflation easing, the next annual increase is markedly smaller.

“Compared to last year’s 8.7% increase, this is going to feel small and the perception is that its not keeping up with the inflation and the higher costs that retirees are still seeing,” said Martha Shedden, president of the National Association of Registered Social Security Analysts.

On top of that, an anticipated increase in Medicare premiums for 2024 will eat into the Social Security cost-of-living bump.

Medicare hasn’t announced the increase for traditional Medicare, but said the cost of Medicare Advantage plans is expected to remain stable.

Still, senior advocates applauded the annual Social Security adjustment.

“Retirees can rest a little easier at night knowing they will soon receive an increase in their Social Security checks to help them keep up with rising prices,” AARP CEO Jo Ann Jenkins said. “We know older Americans are still feeling the sting when they buy groceries and gas, making every dollar important.”

Social Security is financed by payroll taxes collected from workers and their employers. The maximum amount of earnings subject to Social Security payroll taxes will be $168,600 for 2024, up from $160,200 for 2023.

Retirees whose sole income comes from Social Security are not subject to taxes on that income.

Nancy Altman, president of Social Security Works, an advocacy group for the social insurance program, said that the COLA is a “reminder of Social Security’s unique importance” and that “Congress should pass legislation to protect and expand benefits.”

However, the program faces a severe financial shortfall in the coming years.

The annual Social Security and Medicare trustees report released in March said the program’s trust fund will be unable to pay full benefits beginning in 2033. If the trust fund is depleted, the government will be able to pay only 77% of scheduled benefits, the report said.

There have been legislative proposals to shore up Social Security, but they have not made it past committee hearings.

A March poll by The Associated Press-NORC Center for Public Affairs Research found that most U.S. adults are opposed to proposals that would cut into Medicare or Social Security benefits, and 79% of people polled said they oppose reducing the size of Social Security benefits.

The Social Security Administration is still without a permanent leader. President Joe Biden in July nominated former Maryland Gov. Martin O’Malley to lead the agency.

The COLA is calculated according to the Bureau of Labor Statistics’ Consumer Price Index, or CPI. But there are calls for the agency to instead use a different index, the CPI-E, which measures price changes based on the spending patterns of the elderly, like health care, food and medicine costs.

Any change to the calculation would require congressional approval. But with decades of inaction on Social Security and with the House at a standstill after the ouster of Speaker Kevin McCarthy, R-Calif., seniors and their advocates say they don’t have confidence any sort of change will be approved soon.

The cost of living adjustments will have a big impact on people like Alfred Mason, an 83-year-old Louisiana resident. Mason said that “any increase is welcomed, because it sustains us for what we are going through.”

As inflation is still high, he said, anything added to his income “would be greatly appreciated.”

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NEW YORK (AP) — Tens of millions of older Americans are about to get what may be the biggest raise of their lifetimes.

On Thursday, the U.S. government is set to announce how big a percentage increase Social Security beneficiaries will see in monthly payments this upcoming year. It’s virtually certain to be the largest in four decades. It’s all part of an annual ritual where Washington adjusts Social Security benefits to keep up with inflation, or at least with one narrow measure of it.

Plenty of controversy accompanies the move, known as a cost-of-living adjustment or COLA. Critics say the data the government uses to set the increase doesn’t reflect what older Americans are actually spending, and thus the inflation they’re actually feeling. The increase is also one-size-fits-all, which means beneficiaries get the same raise regardless of where they live or how big a nest egg they may have.

Here’s a look at what’s happening:

WHAT’S THE BIG DEAL?

The U.S. government is about to announce an increase to how much the more than 65 million Social Security beneficiaries will get every month. Some estimates say the boost may be as big as 9%.

WHAT DO BENEFICIARIES HAVE TO DO TO GET IT?

Nothing.

WILL THIS BE THE BIGGEST INCREASE EVER?

No, but it’s likely the heftiest in 40 years, which is longer than the vast majority of Social Security beneficiaries have been getting payments. In 1981, the increase was 11.2%.

WHEN WILL THE BIGGER PAYMENTS BEGIN?

January. They’re also permanent, and they compound. That means the following year’s percentage increase, whatever it ends up being, will be on top of the new, larger payment beneficiaries get after this most recent raise.

HOW BIG WAS THIS PAST YEAR’S INCREASE?

5.9%, which itself was the biggest in nearly four decades.

WHAT’S THE TYPICAL INCREASE?

Since 2000, it’s averaged 2.3% as inflation remained remarkably tame through all kinds of economic swings. During some of the toughest years in that stretch, the bigger worry for the economy was actually that inflation was running too low.

Since the 2008 financial crisis, the U.S. government has announced zero increases to Social Security benefits three times because inflation was so weak.

SO THE INCREASE IS TO MAKE UP FOR INFLATION?

That’s the intent. As Americans have become painfully aware over the past year, each $1 doesn’t go as far at the grocery store as it used to.

HAS SOCIAL SECURITY ALWAYS GIVEN SUCH INCREASES?

No. The first American to get a monthly retirement check from Social Security, Ida May Fuller from Ludlow, Vermont, got the same $22.54 monthly benefit for 10 years.

Automatic annual cost-of-living adjustments didn’t begin for Social Security until 1975, after a law passed in 1972 requiring them.

HOW IS THE SIZE OF THE INCREASE SET?

It’s tied to a measure of inflation called the CPI-W index, which tracks what kinds of prices are being paid by urban wage earners and clerical workers.

More specifically, the increase is based on how much the CPI-W increases from the summer of one year to the next.

IS THAT THE INFLATION MEASURE EVERYONE FOLLOWS?

No. People generally pay more attention to a much broader measure of inflation, the CPI-U index, which covers all urban consumers. That covers 93% of the total U.S. population.

The CPI-W, meanwhile, covers only about 29% of the U.S. population. It has been around longer than the CPI-U, which the government began compiling only after the legislation that required Social Security’s annual increases be linked to inflation.

IS THAT WEIRD?

Yes, and some critics have argued for years that Social Security should change to a different measure, one that’s pegged to older people in particular.

Another experimental index, called CPI-E, is supposed to offer a better reflection of how Americans aged 62 and above spend their money. It has historically shown higher rates of inflation for older Americans than the CPI-U or CPI-W, but it has not taken hold. Neither have other measures compiled by organizations outside the government that hope to show how inflation affects older Americans specifically.

Recently, the CPI-E has shown a bit milder inflation than CPI-W or CPI-U.

WHY NOT USE ONE OF THOSE OTHER INDEXES?

To calculate the CPI-E, the government pulls from the same survey data used to measure the broad CPI-U. But there are relatively few older households in that data set, meaning it may not be the most accurate.

All indexes give just a rough approximation of what inflation really is. But the more pressing challenge may be that if the government switched to a different index, one that showed higher inflation for older Americans, Social Security would have to pay out higher benefits.

That in turn would mean a faster drain on Social Security’s trust fund, which looks to run empty in a little more than a decade at its current pace.

HOW IS THE SIZE SET FOR SOCIAL SECURITY BENEFITS?

Through a complicated formula that takes into account several factors, including how much a worker made in their 35 highest-earning years. Generally, those who made more money and those who wait longer to start getting Social Security get larger benefits, up to a point.

This year, the maximum allowed benefit for someone who retired at full retirement age is $3,345 monthly.

WILL RICH PEOPLE GET THE SAME BOOST IN SOCIAL SECURITY?

Yes. Everyone gets the same percentage increase, whether they have millions of dollars in retirement savings or are just scraping by.

IF THE INCREASE IS BASED ON INFLATION IN URBAN AREAS, WILL PEOPLE IN RURAL AREAS GET THE SAME BOOST?

Yes.

“The COLA doesn’t take into account where you live or your actual spending patterns,” said William Arnone, CEO of the National Academy of Social Insurance. “For some people, it’s an overstatement of cost of living for, say, small towns in the Midwest versus urban areas like New York, D.C. or Chicago. With many older people choosing to live in suburban areas or rural areas, some will benefit more” than others from the same-sized increase.

DO BIGGER PAYOUTS NOW MEAN SMALLER PAYOUTS IN THE FUTURE?

The expected increase is great news for every beneficiary and for the businesses around them that could see more in sales. But it also means the Social Security system will pay out more money sooner, which can add more strain on its trust fund.

One year of big increases driven by inflation won’t drain the system by itself, but it’s already long been heading toward an unsustainable future. The latest annual trustees report for Social Security said its trust funds that pay out retirement and survivors and disability benefits will be able to pay scheduled benefits on a timely basis until 2035. After that, incoming cash from taxes will be enough to pay 80% of scheduled benefits.

WILL THIS MAKE INFLATION WORSE?

It will put more cash in the hands of people who mostly really need it, and they’re very likely to use it. That will feed more fuel into the economy, which could keep upward pressure on inflation.

Social Security’s boost, though, will have a smaller impact on the economy than past stimulus packages provided by Washington, snarls in supply chains caused by worldwide shutdowns of businesses or other factors that economists say are behind the worst inflation in decades.

SO EVERYTHING’S GOING TERRIBLY?

The risk of a recession seems to grow by the day, but many economists expect inflation to come down as interest-rate hikes take effect and supply chains continue to improve.

Economists at Deutsche Bank, for example, expect inflation to ease from 8.2% this past August to 7.2% in the last three months of this year. In 2023, they see it dropping to 3.9% in the second half of the year.

This is key for many Social Security beneficiaries. That would mean the COLA they receive this upcoming year would be bigger than the inflation they’re feeling at the moment. That would help make up for this past year, where actual inflation far outstripped the cost-of-living increase they got in January 2022.

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Nicole Spector | Contributed

One of the nation’s biggest financial crises centers on retiring: people just can’t afford to do it. According to 2021 data from the Natixis Global Retirement Index, 36% of Americans said they will never have enough money to be able to afford to retire. Another survey, by MagnifyMoney, found that 46% of all Americans anticipate that they will retire in debt.

The prospect of retiring may look especially dismal in famously desirable states like California, where the median home price is up to $884,890. But even “The Golden State” has its relatively affordable nooks and not-so-badly-priced crannies.

GOBankingRates compiled a list of the four best cities where a couple can live in California — solely on a Social Security budget for two. That means no assets, no savings — just that good old monthly income of $3,239.34 (the average monthly Social Security benefit of $1,619.67 doubled).

Let’s have a look at where you can get the biggest bang for your limited buck if you and your partner want to retire in Cali.

RIVERSIDE

• Percentage of Population 65 and Older: 14.8%
• Grocery Cost of Living Index: 100.4
• Healthcare Cost of Living Index: 87.8
• Livability Score: 59
• Average Rent: $1,569.20
• Monthly Grocery Cost Per Couple: $826.96
• Monthly Healthcare Cost Per Couple: $757.57
• Total Monthly Expenditures: $3,153.73

Riverside has a robust citrus industry, hiking trails (you can even find volcanoes there) and a solid state university, along with the advantage of being relatively close to the bustling hub of Los Angeles — which is about 60 miles away. This makes it a nice choice for those who are bidding adieu to L.A in search of more reasonable rents. Alas, the city has a high unemployment rate and a relatively high crime rate, which is what contributes to its subpar livability score of 59.

POMONA

• Percentage of Population 65 and Older: 11.5%
• Grocery Cost of Living Index: 100.5
• Healthcare Cost of Living Score: 89.4
• Livability Score: 53
• Average Rent: $1,511.40
• Monthly Grocery Cost Per Couple: $827.79
• Monthly Healthcare Cost Per Couple: $771.37
• Total Monthly Expenditures: $3,110.56

Just 30 miles from Los Angeles, Pomona is another California city that gets a lot of Angelenos coming over for a more affordable life. It’s a highly diverse city, which also makes it attractive, but its barely middling livability score is an obvious problem. The biggest issue Pomona faces is its high crime rate.

SACRAMENTO

• Percentage of Population 65 and Older: 13.3%
• Grocery Cost of Living Index: 104.8
• Healthcare Cost of Living Score: 96.7
• Livability Score: 62
• Average Rent: $1,281.00
• Monthly Grocery Cost Per Couple: $863.20
• Monthly Healthcare Cost Per Couple: $834.36
• Total Monthly Expenditures: $2,978.56

The capital of California is also known as the City of Trees, which gives you some idea of the lush, verdant scenery that can be found there. Sacramento sports a booming arts scene and a trendy “Farm to Fork” movement, with its 1.5 million acres of farmland churning out roughly 165 varieties of produce. It has the highest livability score on this list, but, at 62, that’s still not very high. This is likely because the city, picturesque as it can be, has a high crime rate too.

FRESNO

• Percentage of Population 65 and Older: 11.6%
• Grocery Cost of Living Index: 99.2
• Healthcare Cost of Living Score: 90.6
• Livability Score: 57
• Average Rent: $1,050.00
• Monthly Grocery Cost Per Couple: $817.08
• Monthly Healthcare Cost Per Couple: $781.73
• Total Monthly Expenditures: $2,648.80

Fresno is located right in the heart of the Golden State in San Joaquin Valley. The city has a highly diverse population and that’s reflected in its sundry cuisine options. While you really can’t beat an average rent of $1,050 in California, Fresno has some work to do in order to become a more desirable locale. Donning a less than impressive livability rate of 57, Fresno is blighted with bad air and a poor economy.

METHODOLOGY: GOBankingRates determined the best places in California for a couple to live on only Social Security checks based on (1) the average monthly benefit for retired workers ($1,619.67), sourced from the Social Security Administration, and doubled; and (2) the average 2022 rent for a one-bedroom apartment, as sourced from ApartmentList. GOBankingRates then used Sperling’s Best to find the cost of living index for each listed city, looking at (3) grocery and (4) healthcare index scores. Next, GOBankingRates used data from the Bureau of Labor Statistics 2020 Consumer Expenditure Survey to find the annual expenditure amount for both grocery (“food at home”) and healthcare costs for people aged 65 and older in order to find how much a person 65 and over would spend on groceries and healthcare in each city on a monthly basis. GOBankingRates then added monthly housing, grocery and healthcare costs together. In order for a city to be qualified for the study, its population had to be 10% or more over the age of 65, according to the U.S. Census Bureau. All data was collected on and up to date as of June 3, 2022.

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“I loved the children I taught. But I’ve been penalized for that decision by the government,” said Lee Giammona, who spent 25 years teaching elementary school children in Santa Rosa.

For her, it was a second career.

But as much as she loved teaching, she now questions whether she should have left her 10-year career in business for the classroom.

“If I had known that when I went back into teaching, I think I would have reconsidered that decision for sure,” she said.

When Giammona retired as a teacher in California, she didn’t know she would only be allowed to collect a small portion of the Social Security benefits she paid into before stepping into education.

Under the Windfall Elimination Provision, she gets only $42 a month from Social Security.

“They can just keep it. It’s embarrassing. It’s like a slap in the face,” she said.

Giammona does receive her teacher’s pension. But she didn’t teach long enough to max out her retirement. And now she says she struggles.

“It’s very hard to live on a limited amount of money,” she said.

Giammona also received another unwelcome surprise.

When her husband died last year, she was not allowed to collect any of his Social Security benefits.

“I get nothing. Nothing. Zero. And wow I get penalized again for being a teacher,” she said.

Giammona is far from alone.

The California Federation of Teachers (CFT) estimates almost two million retired teachers and public employees who once worked other jobs to supplement their lower pay, find out later in life that they will collect little to none of their Social Security.

“Once people realize this is what is going to happen, fewer people are going to go into teaching. We already have a severe teaching shortage,” said Doug Orr, who retired from the California Federation of Teachers. Orr chairs the CFT’s Retirement Policy Committee.

“People who thought they were going to get Social Security because they paid money in, paid for that benefit, are not getting that benefit,” Orr said.

California is one of 15 states in the U.S. where public employees are blocked from receiving most, if not all, of their Social Security. That also includes benefits from their late spouses.

It was a decision made by public employees back in the 1970s and 80s. But it backfired, and now workers who had nothing to do with that decision are paying the price. “It’s a lack of fairness. And that’s what we are trying to fix,” said Republican Rep. Rodney Davis of Illinois. He authored HR-82, proposed legislation he calls the “Social Security Fairness Act.” If passed, the bill would allow government workers to collect Social Security benefits from other jobs and their late spouses. Opponents argue that those changes could pose a threat to the overall health of the Social Security fund. The proposals would increase Social Security payouts by 1.5%.

“The unintended consequence of their version of trying to prolong the solvency of the Social Security system has been to punish families who have given their entire careers to public service,” said Davis.

Davis’ bill needs the support of 290 representatives to bring it to a vote in congress. He has 254 supporters so far.

He said the pandemic has slowed momentum. But Giammona said she can’t wait for change much longer.

Rob Roth | Contributed

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“We don’t want Californians to pay the price for not getting a REAL ID during the pandemic,” DMV Director Steve Gordon said in a statement. “While the federal government has extended the enforcement date for a REAL ID, there is no need to procrastinate. If you act now, you can take advantage of this offer and upgrade to a REAL ID for free.”

To get a REAL ID, you must visit a DMV office in person, but the agency recently simplified the process to fall in line with new federal rules.

The DMV no longer requires applicants to provide both a Social Security card and W-2 to prove they have a Social Security number. You only need to provide your Social Security number in addition to proof of identity and two proofs of California residency.

The agency advised people who need a REAL ID to go online and fill out the application and upload their documents. You must then go to a DMV office in person to complete the process at your convenience, including on the same day. No appointment is necessary.

Starting May 3, 2023, a regular California driver’s license or ID card won’t be accepted as a valid form of federal identification. The old cards will still be a valid form of state ID (you can show it to a police officer if you’re pulled over, etc.), but they will not be sufficient at airports or other federal facilities such as courthouses and military bases.

If you have another form of federal identification, like a passport, you can use that instead. People who don’t have passports (or don’t want to carry them) will need a REAL ID to fly, even within the United States. Find more information about the REAL ID at REALID.dmv.ca.gov.

Amy Graff • SFGate

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The Senior Citizens League, one of the nation’s largest nonpartisan seniors groups, surveyed 1,125 participants from mid-January through April 20, 2021. According to their data, more than 62% of retirees think that Social Security cost-of-living adjustments need a guaranteed minimum of 3%. “When the prices on the goods and services that retirees depend on go through the roof, their Social Security benefits don’t buy as much, and that causes enormous financial stress for all retirees,” said Mary Johnson, a Social Security policy analyst for The Senior Citizens League, in a press release.

The League stated that they are working with Congress to increase benefits for retirees to the 3% guaranteed minimum and to use the Consumer Price Index for the Elderly, or CPI-E. The latest cost-of-living adjustment decision was based on an increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W, from the third quarter of 2019 through the third quarter of 2020; however, inflation has risen since last year by 1.4% in the first quarter of 2021.

The CPI-W was more than 3% higher as of the end of March than it was the previous year, according to CNBC. The largest COLA increase was in 2008 by 5.8%. Since 2010, the average increase has been 1.4%, according to data from the Social Security Administration. An increase to monthly Social Security benefits will be determined by CPI data through September.

GOBankingRates | Contributed

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