Social Security Administration makes change that will impact millions of beneficiaries
Changes are coming to how you access Social Security’s online services.
The portal for millions of Social Security beneficiaries to access their online account is changing.
I received an alert in my e-mail last week from the Social Security Administration. Perhaps you have too.
The gist of it is that you will no longer be able to sign in to your online Social Security account using your existing username and password.
To access Social Security online services, you will need to create a Login.gov or ID.me account. If you have a My Social Security account that started before Sept. 18, 2021, you must go back in and start over. And if you've never registered there, it’s time to do so.
The new login requirements do not affect monthly benefit checks.
Your My Social Security account is a personalized portal where you can request a replacement Social Security card, check the status of a benefits application, estimate future benefits, or manage the benefits you already receive. You can set up an account even if you don't currently receive benefits.
“My Social Security is a safe and secure way for people to do business with us,” Social Security Commissioner Martin O'Malley said in a statement. “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 are one of the millions of account holders who already use Login.gov or ID.me account to sign in, you do not need to take any action.
To transition your account, go to “Sign in” at the top of the Social Security website, ssa.gov, and select “Sign in with Social Security Username.” After successfully signing in, you will be asked to create an account with Login.gov.
Login.gov has 24/7 customer phone and chat support to answer your questions and, if needed, help you with creating your account.
Claiming benefits
Having a My Social Security account is a huge help in figuring out when to start your Social Security benefits.
You can claim benefits as long as you've worked for 10 years and can turn on your checks as early as age 62.
But that’s often not the best choice because it permanently reduces your monthly checks.
Many people claim as soon as they are eligible without thinking about how it will reduce both their lifetime retirement benefits and their spouse’s survivor benefits. A better understanding can help you make a more careful decision.
While there are clearly solid personal reasons for claiming early, such as poor health or financial need, claiming earlier versus later is a significant trade-off.
Read more: What is the retirement age for Social Security, 401(k), and IRA withdrawals?
The financial payback of patience
If you have the flexibility to delay benefits, the increase you get is impressive. If you wait to tap your benefits from your full retirement age — 66 or 67 — until age 70, you’ll earn delayed retirement credits. Those come to a roughly 8% annual increase in your benefit each year until you hit 70 when the credits stop accruing.
If you were born in 1960 or later, you’ll receive about 70% of your potential payout when you claim early at age 62, and about 132% if you claim at age 70.
Let’s say you turn 62 in 2024. Your full retirement age is 67, and your monthly benefit that starts at full retirement age is $2,000. If you start to get benefits at age 62, your monthly benefit is cut by 30% to $1,400 to account for the longer time you’ll receive benefits. This decrease is usually permanent.
If you choose to delay until age 70, you would ratchet up your monthly benefit to $2,480 — a difference of $1,080 each month.
Kerry Hannon is a Senior Columnist at Yahoo Finance. She is a career and retirement strategist, and the author of 14 books, including "In Control at 50+: How to Succeed in The New World of Work" and "Never Too Old To Get Rich." Follow her on X @kerryhannon.
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