Artificial Intelligence – Exciting potential but be cautious!

Humans are an interesting species. We tend to trust information that conforms to what we wish it to be, and challenge anything that is not in line with our beliefs.  And that isn’t necessarily a terrible thing, provided that we are open to considering opposing points of view before taking any action. And with the advent of Artificial Intelligence (AI) in today’s internet world, using applications (”apps”) such as ChatGPT, Google Gemini, and Microsoft Copilot (among others) we must be careful not to accept the AI-generated answers as gospel. In the same sense that websites such as Wikipedia offer sometimes unverified information (usually with a disclaimer), taking the word of a computerized program, such as an AI app, should be viewed only as potentially the correct answer. Especially when it comes to making important financial decisions, such as questions about Social Security benefits, contacting a real person with the experience to provide the correct answer is essential.

Here at the AMAC Foundation’s Social Security Advisory Service, we have studied with much interest how AI applications work, and how they sometimes provide correct, but sometimes misleading answers to complex questions. Social Security is an exceedingly complex program with many seemingly convoluted rules.

Case in point:  Our AMAC Foundation SS advisory service was recently contacted by someone who had received conflicting information about their surviving spouse benefits.  The Social Security Administration said that he could not do something, but an AI app he consulted indicated that he could do what he wanted. And, as humans often do, the widower was more inclined to believe the AI answer, which was more to his liking and in line with what he wanted to do. And as frequently happens when answers conflict, our AMAC Foundation SS Advisory Service was contacted to find out “the real story.”

Real-Life Scenario

Trevor is 66 years old and receives Social Security Disability Insurance (SSDI) benefits of about $3,100 per month.  His wife, unfortunately, passed away two years ago while collecting her own Social Security retirement benefits of $2,500 per month. Trevor was told by Social Security at the time he cannot collect a surviving spouse benefit from his deceased wife because his SSDI benefit is more than he would be entitled to as his wife’s widower. Based on that information, Trevor’s plan was to stop his SSDI benefit at his full retirement age (67) and, instead, claim his smaller surviving spouse benefit, while allowing his own SS retirement benefit to earn Delayed Retirement Credits (DRCs) until age 70 when his own benefit would be about 24% more than he was receiving on SSDI. That plan seemed good to Trevor, who contacted the AMAC Foundation’s Social Security Advisory Service to find out how to do.

AMAC Foundation’s Response was Challenged

Our Foundation’s advisor counseled Trevor that he cannot switch to his lower survivor benefit after suspending his own SS benefit, thus allowing his own Social Security retirement benefit to accrue DRCs.  Because he is now on SSDI he is already receiving his own SS benefit. The only option he would have to earn DRCs is to suspend his SS retirement benefit when he reaches his full retirement age (FRA), and he wouldn’t receive any other SS benefits (e.g., his survivor benefit) while his own benefit was suspended..

Undaunted, Trevor then sought information from one of the prominent AI apps, which suggested that he could, indeed, collect his surviving spouse benefit while suspending his own SS benefit. This, of course, is the case if the person is not already receiving their own Social Security benefit. For clarity, in many circumstances a surviving spouse can collect only their survivor benefit while choosing to delay claiming their personal SS retirement benefit to a later time, thus receiving a higher monthly amount when later claimed. But not if they are already receiving a benefit based on their personal lifetime work record. And Trevor’s SSDI benefit is based upon his lifetime earnings record.

Trevor shared the complete AI response with our SS Advisory staff, and the AI response did, indeed, suggest that he could suspend his own benefit and take his survivor benefit while allowing his own SS to grow to maximum.  .

Conflicting Information

To be clear, it was once possible to do what Trevor wished – suspend his own SS retirement benefit and collect a benefit based upon his wife’s record (e.g., his surviving spouse benefit). But Social Security’s rules change over time, and what was once allowed is often no longer possible. In this case, since Trevor is already collecting his own SS benefit while on SSDI, he is unable to suspend his benefit at FRA and, instead, collect his surviving spouse benefit, thereby allowing his own SS benefit to grow larger. These new restrictions were codified by SSA in 2010, and again with the Bipartisan Budget Act of 2015, which unequivocally states that someone who suspends their own SS retirement benefit cannot receive any other type of SS benefits while their personal benefits are suspended.

It is likely that the AI app, in searching for an answer to Trevor’s inquiry, found the “old rules” that permitted him to collect the survivor benefit, but ignored the new rule that prohibits it. Technically, what was once possible no longer is due to legislative changes.  The AI program apparently went by the “old rules” rather than the new ones.

Providing the Correct Answer

Of course, the AMAC Foundation, once again, provided Trevor with the correct answer to his question, using the exact language of Social Security’s current ”Program Operations Manual” (POMS), and the expertise of our very experienced NSSA-accredited and AMAC-certified Social Security Advisory staff. However, Trevor remains unconvinced and, at his full retirement age next year, plans to contact Social Security and attempt to suspend his own SS retirement benefit (which he can do) and apply for his surviving spouse benefit (which he cannot do) while allowing his own SS benefit to grow to maximum. Notably, the AI app, while saying Trevor could do as he wanted, also included a disclaimer suggesting he contact the Social Security Administration for more current information.

We wish Trevor well in his quest to suspend his own SS retirement benefit and also claim his widower benefit until he is 70 years of age when he hopes to switch to a higher SS retirement benefit.  We do not believe that will happen, but this serves as a very interesting example of how AI may provide misleading information which results in substantial confusion  Our message:  Be cautious about what you learn from artificial intelligence and be sure to confirm what you learned from AI with someone with experience on that topic.  The AMAC Foundation stands ready to assist you with our substantial Social Security expertise. Yes, Artificial Intelligence is an exciting new frontier with great potential, but please be cautious when using it, especially in Social Security matters.

This article is intended for information purposes only and does not represent legal or financial guidance. It presents the opinions and interpretations of the AMAC Foundation’s staff, trained and accredited by the National Social Security Association (NSSA). NSSA and the AMAC Foundation and its staff are not affiliated with or endorsed by the Social Security Administration or any other governmental entity. To submit a question, visit our website (amacfoundation.org/programs/social-security-advisory) or email us at ssadvisor@amacfoundation.org.