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Social Security Administration Withholds $132 Million From Widows
Learn about the shocking revelation of how the Social Security Administration withholds $132 million from widows, leaving them deprived of their rightful benefits. Economist Larry Kotlikoff exposes the misconduct and the ongoing underpayment issue affecting thousands of beneficiaries. This alarming problem demands immediate attention and corrective action.
In a shocking revelation, the Social Security Administration has been withholding a staggering $132 million from widows, leaving them deprived of their rightful benefits. Economist and Boston University professor Larry Kotlikoff exposed this appalling misconduct by the SSA, stating that recently widowed senior citizens are not being informed of the true benefits they are entitled to. Instead, they are being wrongly instructed to file for all benefits simultaneously, causing them to lose out on significant amounts of money. This distressing revelation is not an isolated incident, as a report from the Social Security inspector general in 2018 revealed that thousands of beneficiaries were underpaid. The problem persists, with an estimated annual underpayment of $10 million.
Social Security Administration Withholds $132 Million From Widows
Introduction
Did you know that the Social Security Administration (SSA) has been withholding millions of dollars in earned benefits from recently widowed senior citizens? It’s true, and it’s a heartbreaking scam that affects some of society’s most vulnerable individuals. Economist and Boston University professor Larry Kotlikoff recently shed light on this issue, revealing that SSA staff are not providing accurate information about benefits to these widows. In this article, we will explore the extent of this problem, the reasons behind it, and the ongoing failure of the SSA to address this issue.
The Scam on Vulnerable Senior Citizens
When a widow becomes eligible to collect a widow’s or divorced widow’s benefit, they have the option to delay filing for their own retirement benefit. By doing so, they can maximize their benefits by allowing one to grow while receiving the other. However, SSA staff are not informing widows of this important option. Instead, they are told that they must file for all benefits at the same time. This instruction goes against the best interest of the widow, as it can cost them hundreds of thousands of dollars in present value. This scam preys on vulnerable senior citizens who are already going through a difficult time.
Inaccurate Information Provided by SSA Staff
Larry Kotlikoff’s encounter with SSA staff during a client call shed light on the inaccurate information being provided. When he asked the agent if she had been trained to automatically file everyone for all the benefits they were immediately eligible for, she replied in the affirmative. This lack of proper training and misinformation is perpetuating the problem and leading to the underpayment of benefits to widows.
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The Cost of Filing for All Benefits at the Same Time
Filing for all benefits simultaneously might seem like the logical thing to do, but it can have severe financial consequences for widows. According to Kotlikoff’s calculations, an individual who files for all benefits at the same time can lose over $400,000 in present value. This staggering loss underscores the urgency for widows to be provided with accurate information and guidance from the SSA.
Widespread Issue, Not an Isolated Case
One might hope that the case described above was an isolated incident, but unfortunately, it is a widespread issue. The Social Security inspector general issued a report in 2018 that revealed the agency’s failure to inform widow(er) beneficiaries of their option to delay their application for retirement benefits. This report estimated that thousands of beneficiaries have been underpaid an estimated $131.8 million. The problem persists, and beneficiaries continue to be underpaid by millions of dollars each year.
Failure to Inform Widow(er) Beneficiaries
The 2018 report by the Social Security inspector general found that claimants were not being informed of their option to delay their retirement application. This failure to provide crucial information goes against the agency’s obligations and leads to significant financial losses for the widows who are entitled to higher payouts. The SSA is responsible for ensuring that beneficiaries understand their options and can make informed decisions about their benefits.
Underpayment of Benefits
As a result of the SSA’s failure to inform claimants of their options, beneficiaries have been underpaid for years. The 2018 report estimated that over 9,000 beneficiaries age 70 and older were underpaid by $131.8 million. Additionally, the report projected that an additional 1,899 beneficiaries under the age of 70 would be underpaid by $9.8 million annually starting from the year they attain age 70. This ongoing underpayment emphasizes the need for immediate action to rectify this situation.
Continuation of the Problem Despite Previous Reports
Despite the 2018 report by the Social Security inspector general, which clearly outlined the issue and its extent, the problem continues to persist. The fact that beneficiaries are still being underpaid almost $10 million every year points to a failure on the part of the SSA to address the issue adequately. It is unacceptable that widows are being deprived of the benefits they are entitled to, especially when there is evidence of the problem and potential solutions.
Annual Underpayment
The ongoing underpayment of benefits to widows is not a one-time occurrence but rather an annual problem that compounds over time. As estimated by the Social Security inspector general, beneficiaries have been underpaid by almost $10 million each year. When added up over the years, this annual underpayment becomes a significant loss of financial security for the affected individuals. The SSA must take immediate action to rectify this situation and ensure that widows receive the full benefits they deserve.
The #WasteOfTheDay Sponsored by OpenTheBooks.com
This appalling case of the Social Security Administration withholding $132 million from widows is the #WasteOfTheDay. OpenTheBooks.com, a group of forensic auditors, brought this injustice to light and continues to advocate for transparency and accountability. Their dedication to exposing waste and inefficiency in government programs is commendable, and it highlights the need for ongoing scrutiny to protect vulnerable individuals from falling victim to scams like this one. By supporting organizations like OpenTheBooks.com, we can contribute to the fight against waste and ensure that such injustices are brought to light and rectified.
In conclusion, the Social Security Administration’s withholding of $132 million from widows is an egregious violation of their rights and a betrayal of the trust these vulnerable individuals place in the system. The failure of SSA staff to provide accurate information, the underpayment of benefits, and the continuation of this problem despite previous reports are all deeply concerning. It is imperative that the SSA takes immediate action to rectify this situation and ensure that widows receive the benefits they are entitled to. It is our duty to advocate for transparency, accountability, and justice for these widows and all vulnerable members of our society.