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Bridget Quinn is the advocacy and outreach director at AARP Maine.
Social Security, the vital lifeline for tens of millions of Americans everywhere — including 369,221 in Maine — and used for housing, groceries, gas, and the other everyday necessities is about to mark its 90th birthday. And with that anniversary comes a responsibility to strengthen the program, and determine how we can help it age in the healthiest way. As the bedrock of retirement in America, our financial future depends on protecting Social Security for decades to come.
Social Security will face challenges in the years ahead, but it’s incumbent on us to ensure the program continues to work for the 67 million Americans across the country who rely on it. The history of the program shows us how necessary it is for the healthy retirement of Americans everywhere.
On Aug. 14, 1935, President Franklin D. Roosevelt signed the Social Security Act, and in January 1940 Ida M. Fuller, the first person to receive Social Security, collected a monthly check of $22.54 — that’s about $523 in inflation-adjusted dollars. From that beginning, the program now provides $1.4 trillion in annual payments that offer retirement security. It is the only inflation-adjusted retirement program, and it guarantees that Americans everywhere know they can plan soundly for retirement. That’s nationwide.
Here in Maine, 369,221 Mainers collect Social Security benefits, and the program injects $7.2 billion into the state’s economy every year. In terms of economic impact, these annual payments strengthen household spending and support local businesses across the state. Social Security helps Mainers live and retire with dignity, offers crucial support to those with disabilities, and serves as a financial lifeline for families navigating the loss of a loved one.
Here’s who receives Social Security in Maine: 274,680 (74.4 percent) of beneficiaries are retired workers; 48,170 (13 percent) are disabled workers; 25,697 (7 percent) are spousal/survivor beneficiaries; and 20,067 (5.6 percent) are children.
The average monthly Social Security payment in Maine is $1,816 ($21,788 annually) for a retired worker and $1,451 monthly ($17,409 annually) for a disabled worker.
Of note is that in Maine, approximately 102,000 residents aged 65 and older are lifted out of poverty thanks to their benefits. Without Social Security, 39.8 percent of older Mainers would be living in poverty. Because of these earned payments, that figure drops dramatically to just 8.1 percent, which shows that Social Security is not only a retirement program, but also an engine of equity and stability for older adults.
Social Security will never completely “go broke.” That’s a fact. Social Security is a pay-as-you-go system. As long as there are workers paying into Social Security, there will be Social Security for those collecting benefits. The program is funded by payroll taxes and will continue to pay benefits.
But the program does face funding challenges. The most recent Social Security Trustees’ Report finds that the surplus will run out in 2034. To prevent that shortfall, Congress must once again step up — as it did when it reformed the program in 1983 — before millions of Americans are left with less than they’ve earned.
Customer service is another area where Social Security is facing challenges. Administrative inefficiencies at the Social Security Administration (SSA) this year have only exasperated the customer service crisis that has been ongoing for years. SSA has struggled with call wait times, hold times, customer service resolutions and staffing issues, according to SSA’s own data. Many Americans who need access to the program face hours on the phone or in line at their local offices. In addition, budget and staffing levels have strained SSA’s ability to provide vital services.
This year, customer service wait times are on the rise, fewer people can reach a Social Security representative to meet their needs, and this challenge emerges just as more people, approximately 10,000 people every day, are retiring.
The new Social Security commissioner would be well served by re-committing the Social Security Administration to providing timely, efficient, and effective customer service. SSA needs to be clear when communicating any possible changes and what effects the lower staffing levels will have.
Congress needs to provide oversight to ensure that customer service is prioritized at an agency that has struggled to serve Americans everywhere.
Throughout our history at AARP, we have worked with every administration and Congress, regardless of party affiliation, to protect and strengthen Social Security. More than 67 million Americans everywhere rely on this vital program, and for 90 years, Social Security has been the foundation of retirement in the United States. It’s imperative to ensure the strength of Social Security not just for another 90 years, but for generations upon generations to come.
