Social Security Administration Announces Change Affecting Millions of Beneficiaries

Millions of Social Security beneficiaries are set to experience a significant change in how they access their online accounts. You might have already received an email alert from the Social Security Administration (SSA) about this update. Let’s cut into what this means for you and how to navigate the new system.

Change

The primary update is that you can no longer sign in to your online Social Security account with your existing username and password. To continue accessing Social Security online services, you’ll need to create a Login.gov or ID.me account. If your My Social Security account was established before September 18, 2021, you must re-register. If you haven’t registered yet, now is the time.

Rest assured, these new login requirements won’t affect your monthly benefit checks.

Benefits

Your My Social Security account serves as a personalized portal, offering services such as requesting a replacement Social Security card, checking the status of a benefits application, estimating future benefits, or managing the benefits you already receive. You can set up an account even if you aren’t currently receiving benefits.

Social Security Commissioner Martin O’Malley emphasizes, “My Social Security is a safe and secure way for people to do business with us. We’re excited to transition to Login.gov to access our online services, streamlining the process and ease of use for the public across agencies.”

If you already use a Login.gov or ID.me account to sign in, you don’t need to take any action. For those needing to transition their account, visit the Social Security website, ssa.gov. Click “Sign in” at the top, select “Sign in with Social Security Username,” and after successfully signing in, you’ll be prompted to create an account with Login.gov.

Support

Login.gov provides 24/7 customer phone and chat support to answer your questions and assist you with creating your account if needed.

Claiming

Having a My Social Security account is immensely helpful in determining when to start your Social Security benefits. You can claim benefits if you’ve worked for at least 10 years and can begin receiving checks as early as age 62. However, claiming early permanently reduces your monthly checks.

Many people claim benefits as soon as they are eligible without considering the reduction in both their lifetime retirement benefits and their spouse’s survivor benefits. Knowing this can help you make a more informed decision. While there are valid personal reasons for claiming early, such as poor health or financial need, it’s a significant trade-off.

Patience

If you can delay your benefits, the increase is substantial. Waiting to tap your benefits from your full retirement age — 66 or 67 — until age 70 earns you delayed retirement credits. These credits amount to an approximately 8% annual increase in your benefit each year until you reach 70, at which point the credits stop accruing.

For those born in 1960 or later, you’ll receive about 70% of your potential payout if you claim early at age 62 and about 132% if you claim at age 70.

Let’s illustrate this with an example: Suppose you turn 62 in 2024. Your full retirement age is 67, and your monthly benefit at full retirement age is $2,000. If you start benefits at age 62, your monthly benefit is reduced by 30% to $1,400, accounting for the longer time you’ll receive benefits. This decrease is typically permanent. Conversely, if you delay until age 70, your monthly benefit increases to $2,480 — a difference of $1,080 each month.

Knowing these changes and the benefits of patience can significantly impact your financial future. By carefully considering when to claim your Social Security benefits, you can optimize your retirement income.

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