Why Don't We Have a Minimum Social Security Benefit?
Listen to this episode
“In this podcast, Rusty responds to a question from a person who expects his monthly SS benefit to be very small and who feels that Social Security should provide a larger minimum benefit in such cases. Rusty answers by explaining that Social Security already has a minimum benefit provision but, in almost all cases, the regular benefit formula provides more than the minimum. Rusty also suggests how to investigate other public assistance options.”
Dear Rusty: I think we should have a Social Security baseline of $2,500 for each person. When I retire, my Social Security benefit will not be enough to survive. There are many of us who worked low paying jobs all our lives because we raised families and only started saving later in life. Considering all the money our government wastes on other countries and welfare programs for people who have not worked, it seems unfair that they will not reward those of us who contributed to society all our lives. Signed: Needs More Social Security.
Rusty’s answer in brief
A minimum benefit already exists, the “special minimum benefit,” but fewer than 32,000 of about 59 million retirees qualify, because the regular formula, based on lifetime wages, usually pays more. The regular formula is already tilted toward lower earners: they typically receive about 40% of their pre-retirement income, compared with about 20% or less for higher earners.
Social Security was never meant to cover all retirement needs, so savings, work or other income should fill the gap. For help with health care, housing or utility costs, the National Council on Aging’s BenefitsCheckUp.org lists programs by ZIP code.
This recording presents the viewpoints of the AMAC Foundation’s Social Security Advisory Staff, trained and accredited under the National Social Security Advisors program of the National Social Security Association, LLC (NSSA). NSSA and the AMAC Foundation are not affiliated with or endorsed by the United States Government, the Social Security Administration, or any other state government. To request additional information, contact our Advisory Staff at 888-750-2622, or email us at SSAdvisor@AmacFoundation.org.